Rhode Island Tax Credits
Rhode Island boasts some of the nation's most aggressive employment and training tax credit programs in the nation. The Department of Labor and Training (DLT), working in conjunction with Commerce RI and the Division of Taxation, offers many impressive credit programs.
Here are several federal and state tax credits and grants. Each is linked to more specific information, including purpose, requirements, maximum amount, and administering agencies. You can obtain more information by contacting your Employer Service Representative.
for more information on the Work Opportunity tax credit click here
Purpose
To promote the hiring of certain targeted groups of job seekers.
Summary
Employers that hire individuals that are members of one specific target group may be eligible to receive a tax credit of $2,400 per individual. In general, the target groups include qualified Temporary Assistance to Needy Families (TANF) recipients, some veterans, recipients of vocational rehabilitation services, food stamp recipients, qualified ex-felons, and Supplemental Security Income (SSI) recipients long-term unemployed.
Qualifying employers must file IRS form 8850 and ETA form 9061 or 9062 with the DLT. The Department must certify that there is documentary evidence verifying that the individual qualifies in one of the targeted groups for employment categories.
Applications/Forms
- About Form 8850
- Form 8850 Instructions
- Form 8850, Rev. 3/2016
- Form ETA 9061 - Individual Characteristics Form (expires May 31, 2026)
- Form ETA 9061 - Individual Characteristics Form (español) (expires May 31, 2026)
- Form ETA 9062 - Conditional Certification Form (expires May 31, 2026)
- Form ETA 9175 LTUR Self-Attestation Form (expires May 31, 2026)
- Instructions for Form 2848
- Form 2848 - Power of Attorney and Declaration of Representative
Forms must be submitted within 28 calendar days of the employee's start date
Administering Agencies
- The Rhode Island Department of Labor and Training
- The United States Department of the Treasury
- Internal Revenue Service
Contact the Business Workforce Center by visiting our RI WOTC Website.
or email dlt.esu@dlt.ri.gov
Law
Rhode Island General Law 05-054
Purpose
To provide tax incentives for employees of large companies
This public law would allow companies that hire 100 or more new workers and have a new payroll of at least $10 million, to offer their employees tax exemptions on half the money they make in bonuses. Companies providing the program must show that the employees make more than 125 percent of the state's average wage. An application for certification would be filed with the Rhode Island Economic Development Corporation.
Administering Agencies
Business Corporation Tax
Purpose
To allow a tax credit of 50 percent of actual wages paid to a qualifying apprentice or $4,800, whichever is less.
Summary
Employers that hire an apprentice as a machine toolmaker, machinist, model-maker, gage maker, pattern-maker, plastic process technician, tool and machine setter, die-sinker, mold-maker, tool & die maker, and similar occupations may be eligible for a tax credit of 50 percent of actual wages or $4,800, whichever is less. The apprentice must be enrolled in a registered qualified program through the Rhode Island Department of Labor and Training's State Apprenticeship Council.
Administering Agencies
- RI Department of Labor and Training
- RI State Apprenticeship Council
- RI Division of Taxation
- US Dept. of Labor
- Federal Bureau of Apprenticeship and Training
For more information visit or RI Employers' Apprenticeship Tax Credit Brochure (pdf)
Purpose
To allow a tax incentive in the form of a deduction or modification of 40% of the employee's first-year wages up to $2,400 per employee.
Law
Summary
Effective January 1, 1998, businesses that hire Rhode Island residents and who have been "unemployed," as defined in Paragraph III, Section 2 of this regulation, are entitled to an incentive in the form of a deduction or modification. Once the business has employed each employee for at least 52 consecutive calendar weeks, has a minimum of 1,820 hours of paid employment, and is certified by the Department of Labor and Training, the business shall be entitled to take this incentive.
Applications/Forms
Administering Agencies