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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.
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Investment Tax Credits
For Manufacturing
Title 44-31, Regulation CR 03-02 |
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For High Performance Businesses
Title 44-31, Regulation CR 03-02 |
Purpose
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. |
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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
Investment Tax Credit Certification Form
Administering Agencies:
RI Dept. of Labor and Training | RI Human Resource Investment Council of the Governor's Workforce Board-RI | RI Division of Taxation
For more information- www.dlt.ri.gov/lmi/business/invtax.htm
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Job Training Tax Credit
The Rhode Island Jobs Training Tax Credit Act
Title 42, Chapter 64.6
NOTE: Effective January 1, 2011, the Rhode Island Jobs Training Tax Credit Program can no longer be calimed on RI Personal Income Tax Returns.
Purpose
To grant a tax credit against the corporate income tax equal to 50 percent of actual training expenses for new and current employees, up to $5,000 per employee, over three years.
Summary
Companies are eligible for a tax credit of 50 percent of actual training expenses for new and current employees, up to $5,000 per employee, over three years, for their investments in retraining or upgrading the skills of their employees. Training programs must be pre-approved by the Human Resource Investment Council. Employees must work at least 30 hours per week at the time of the training, make 150 percent of the Rhode Island minimum wage at completion and be retained for 18 months for the company to qualify.
Employers must confirm that employees are "qualified" working a minimum of 30 hours per week and at the completion of training are earning no less than 150 percent of the hourly RI minimum wage. The training programs are approved based on requirements in law and as required by HRIC regulation.
Applications/Forms
Job Training Tax Credit Application (election)
Rules and Regulations
Request for Letter of Good Standing
Administering Agencies
The Rhode Island Human Resource Investment Council of the Governor's Workforce Board-RI
The Rhode Island Division of Taxation
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The Jobs Growth Act
Rhode Island General Law 05-054
Purpose
To provide tax incentives for employees of large companies
Summary
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:
Economic Development Corporation | RI Department of Labor and Training | RI Division of Taxation
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Job Training Tax Credit - 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
DLT-L-20 Form Apprenticeship Agreement Form
Apprenticeship Council Informational Data Form
Apprenticeship Agreement for Employer
Standards Packet of Apprenticeship
Apprenticeship Ratio Sheet
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- www.dlt.ri.gov/apprenticeship or RI Employers' Apprenticeship Tax Credit Brochure (pdf)
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