Rhode Island boasts some of the most aggressive employment and training tax credit programs in the nation. The Department of Labor and Training (DLT), working in conjunction with the Economic Development Corporation, the Governor's Workforce Board-RI, and the Division of Taxation offers many impressive credit programs.

Here are a number of federal and state tax credits and grants. Each is linked to more specific information, including purpose, requirements, maximum amount, and administering agencies. More information can be obtained by contacting your Employer Service Representative.

One Dollar Bill

Work Opportunity Tax Credit

The Work Opportunity Tax Credit (download brochure)

US Dept. of Labor, Employment and Training Admin. - Work Opportunity Tax Credit Eligible New Hires

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) recipientslong-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


Forms must be submitted within 28 calendar days of the employee's start date

Administering Agencies


Contact the Business Workforce Center at 401-462-8724, 401-462-8721 or 401-462-8977 for more information

General WOTC information - www.doleta.gov/business/incentives/opptax/

Investment Tax Credit

For Manufacturing

Title 44-31, Regulation

To allow manufacturers a tax credit against the business corporation tax and RI personal income tax for property used for the production of goods by manufacturing, processing or assembling. Purpose

For High Performance Businesses

Title 44-31, Regulation

Purpose

To allow a tax credit to High Performance businesses in the manufacturing, wholesale, finance, insurance, real estate industries as well as high performing businesses in others industries named specifically in the statute.

To certify for this tax credit, one of the following criteria must be met: the employer’s median annual wage paid to its full-time equivalent employees must be greater than the average annual wage paid by all employers in the state in the same two-digit SIC Code or corresponding NAICS code; the employer’s median annual wage paid to its full-time equivalent employees is greater than or equal to 125 percent of the average annual wage paid by all employers in the state; for manufacturing employers only - the average annual wage paid to the employer’s full-time equivalent employees classified as production workers (as defined by the Department of Labor and Training) is greater than the average annual wage paid to all production workers in the state in the same two-digit SIC code or corresponding NAICS code. The firm invests 2 percent of total payroll costs in worker training.

Applications/Forms


Administering Agencies


Jobs Growth Act

Rhode Island General Law 05-054

Purpose

To provide tax incentives for employees of large companies

This public law would allow companies that employee 100 or more new workers, with a new payroll of at least $10 million, to offer their employees tax exemptions on half the money they make in bonuses. Companies offering the program would need to 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


Apprenticeships

Business Corporation Tax

Title 44-11-41

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.

Applications/Forms


Administering Agencies


For more information visit or RI Employers' Apprenticeship Tax Credit Brochure (pdf)

New Employment Tax Incentive

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

http://webserver.rilin.state.ri.us/Statutes/title44/44-55/44-55-4.HTM

Summary

Effective January 1, 1998, an incentive in the form of a deduction or modification is available to businesses who hire employees who are Rhode Island residents and who have been "unemployed" as defined in Paragraph III, Section 2 of this regulation. Once each employee has been employed by the business for a minimum of 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