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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
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.
For High Performance Businesses
Title
44-31, Regulation CR 03-02
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; 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. The firm invests 2 percent
of total payroll costs in worker training.
Applications/Forms
Investment
Tax Credit Certification Form
Administering Agencies:
The Rhode Island Department
of Labor and Training
The Rhode Island Human Resource Investment Council of the Governor's
Workforce Board-RI
Rhode Island 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
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
Work Opportunity Tax Credit
Tax Relief and Health Care Act of 2006 Public Law 109-432
(pdf, may take a while to download) 12/20/06
Small Business and Work Opportunity Tax Act of 2007 H.R.
1591 (pdf) 5/25/2007
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, and Supplemental Security
Income (SSI) recipients.
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.
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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:
The Economic Development
Corporation
The Rhode Island Department
of Labor and Training
The Rhode Island 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:
The Rhode Island Department of Labor and
Training
The Rhode Island State
Apprenticeship Council
The Rhode Island 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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RI
New Employment Tax Credit
Tax Incentives for Employers Long-Term Unemployment Act
Title
44, Chapter 55
Regulation CR 98-09
Purpose
To promote the hiring of long term unemployed workers
Summary
Applies to new hires who were unemployed for at least 26 weeks and received
Unemployment Insurance benefits or received public assistance for one
year prior to the date of hire.
The employer must file an application with the Department of Labor and
Training within 30 days of the date of hire. The new employee must remain
employed for 52 consecutive calendar weeks with a minimum of 1,820 hours
of paid employment. Upon completion of this requirement the employer can
contact the Department of Labor and Training for an eligibility determination.
Administering Agencies:
The Rhode Island Department of Labor and
Training
The Rhode Island Division of Taxation
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