Summary Information: Call "Contact/Resources" for more info

Tax Credit

Overview

Eligibility

Application Process

Contact/Resource

RI Jobs Training
Tax Credit:

This tax credit is designed to encourage all Rhode Island businesses to upgrade the skills of their workforce.

• credit up to $5,000 per employee over 3 years
• only $1,000 of the $5,000 credit can be based on employees wages
• no credit will be granted without the prior approval of HRIC
• training dollars expended and taken as a credit under other state tax programs are not eligible for this tax credit

• Employer: all for-profit RI business are eligible except certain professional services such as medical, legal, accounting, engineering & other similar services
• Employee: generally cannot earn more than $80,000; must work at least 30 hours per week at the time of training and for 18 months upon completion of training; must earn 150% of RI minimum wage upon completion of training
• Training: qualified training programs are those that improve the skills necessary to improve work performance. Orientation programs, general health programs and seminars or conferences not directly related to the employee’s job description do not qualify. Training must take place within Rhode Island unless training is not available in the State or that the training is available at a lower price out of the State.

1. Contact HRIC for Application Package which includes:

• Election (application) Form
• Rules and Regulations
• Request for Certificate of Good Standing form

2. Complete Application Package and return to HRIC at 1511 Pontiac Avenue, Cranston, RI 02920

3. HRIC approves training program.

4. Employer starts training program within 6 months of approval.

5. Employer files tax credit with copy of HRIC approval letter along with RI State Tax Form

RI Human Resource
Investment Council: 462-8860

Tax Info:

RI Div. of Taxation

222-1040

Technical Assistance:

RI Economic Development Corp.

222-2601 x149

RI Dept. of Labor & Training:

Employer Service Unit 1-888-616-JOBS (5627)

Workforce Partnership of Greater RI RETB: 222-2090

Providence/Cranston RETB: 276-4870

RI Adult Education
Tax Credit:

Allows for both worksite and nonworksite vocational training or basic education

• tax credit of 25% of the costs incurred up to a maximum of $300 per employee and $5,000 per employer
• credit is not refundable
• must file with the Div. Taxation by the end of the calendar year

Program: must be designed to alleviate illiteracy and provide opportunities for academic achievement up to grade 12. Examples include:

• reading
• science
• writing
• arithmetic
• social studies
• pre-vocational subjects
• English as a Second Language (ESL)
• GED preparation
• vocational training
• citizenship for immigrants

1. Contact the RI Division of Taxation at 222-1111 and request tax form RI 6324 - Adult Education Tax Credit.

2. For the tax year, file the completed Adult Education Tax form along with the business’ tax retu

Program Information:

Dept. of Labor & Training:
Employer Service Unit – 1-888-616-JOBS (5627)

Tax Information:

RI Div. of Taxation:

222-1111 (form RI 6324)

RI Employer’s Apprenticeship Tax Credit:

Machine Tool & Metal Trade and Plastic Process Technician

• Credit applies to new machine tool and metal trade apprentice or plastic process technician apprentice.
• Annual credit is 50% of actual wages paid to the qualifying apprentice or $4,800, whichever is less
• Pre-apprentices are not counted as apprenticeships and are not eligible for the tax credit

Program: The Apprentice must be enrolled as a qualifying machine tool and metal trade apprentice or plastic process technician apprentice registered with the State Apprenticeship Council. The program in total must be between 4,000-10,000 hours and is limited to the following trades:

• Machinist
• toolmaker, tool and die maker
• model maker
• gage maker
• patternmaker, moldmake
• plastic process technician
• tool and machine setter, machine tool repair
• diesinker
• tool and diemaker

1. Contact the State Apprenticeship Council at  to register your apprentice program.

Register and enroll your full-time employee as an apprentice with the State Apprenticeship Council.

2. Complete one-page tax form ("Employer’s Apprenticeship Credit RI 2874 - available at RI Division of Taxation) and send along with RI tax form. 

Program Information:

State Apprenticeship Council: 

NTMA (National Tooling & Machining Association): 825-1047

RI Plastics Partnership Council, Inc.: 885-2112

Tax Info: RI Division of Taxation:
222-2934 (form RI 2874)

New Employment Tax Credit

• Applies to new hires who have been unemployed or have received AFDC (Aid to Families with Dependent Children) or TANF (Temporary Assistance for Needy Families)

• one time credit of $2,400

• RI resident for 52 consecutive weeks prior to hire date and unemployed for at least 26 consecutive weeks prior to date of hire

• Received AFDC or TANF for 1 year preceding hire date

Or

• Received Unemployment Insurance at anytime during the 52 weeks prior to date of hire

1. Contact the RI Department of Labor and Training (462-5369) within 30 days of hiring employee

2. DLT will certify eligibility for the tax credit

3. After one year, DLT will contact employer to verify employee is still working at company

4. Employer files for tax credit

Technical Assistance:

RI Dept. of Labor and Training

Bill Brock             462-5369