PROVIDENCE, R.I. - Governor Gina M. Raimondo today joined House Speaker Nicholas A. Mattiello and Warwick Representative K. Joseph Shekarchi to highlight a legislative proposal to encourage new and existing companies to grow and add new jobs.
In the coming week, Shekarchi will submit an amendment to H-5116, a legislative proposal that he has submitted for the last three sessions to improve and expand the Rhode Island Qualified Jobs Incentive Program.
"Speaker Mattiello and Representative Shekarchi have been excellent partners as we explore new and innovative ways to jumpstart our state's economy," said Governor Raimondo. "This legislative initiative is an important component of a comprehensive plan to put shovels in the ground, make it easier to do business here, and help train people for the jobs of the 21st century."
"This legislation will provide a much-needed economic boost to Rhode Island and complements other proposals to improve our business climate and economy," said Speaker Mattiello. "I look forward to continuing work with Governor Raimondo, Representative Shekarchi, and the entire General Assembly to rebuild Rhode Island's economy and put people back to work."
"To reignite Rhode Island's economic engine, we need to be bold and creative about how we bring business to our state and help them grow," said Representative Shekarchi. "To be successful, we need more tools in our toolbox for businesses to invest here, and to be competitive with our neighbors."
For larger, well-established companies, the incentives outlined in this proposal could provide the confidence they need to add jobs by locating new operations in Rhode Island, or expanding existing operations here. And for smaller businesses just starting out, this incentive could provide the additional cash flow they need to put their companies on more stable ground to grow.
As proposed, this initiative will provide tax credits to eligible businesses that create new jobs through 2020 and will encourage the creation of high-quality jobs in priority industries and areas. Additional incentives may be provided to communities most in need and areas located in transit hubs. The tax credits will range from $2500 to $7500. The credit will not exceed the amount of state income taxes generated by the position.
The tax credits will be subject to rigorous accountability provisions and the Commerce Corporation will not release credits until the jobs are filled and the taxes are paid on the positions. The Division of Taxation will audit these tax credits annually. If a firm fails to maintain the majority of its jobs, the credits will cease and a fine could be imposed.
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