|
Town of Portsmouth,
RI
THE ENTERPRISE ZONE |
 |
“…to undertake programs to stimulate economic
revitalization, promote employment opportunities, and encourage business
development and expansion…”
SUMMARY OF STATE PROGRAMS
GENERAL EXPLANATION
An Enterprise Zone is a specific geographic area in which the State and the
Town target programs to directly and indirectly aid business expansion and
job
creation. Rhode Island Enterprise Zones are authorized by the State
Legislature. They are designated for five years periods with the approval
of the Rhode Island Economic Development Corporation. Enterprise Zone
boundaries are set by U.S. census tracts. The map shows the portions of
Portsmouth that are included in the Enterprise Zone. Businesses must be
registered for the program in advance of any new hiring. Registration is
for the current year only and may be continued in following years.
THE STATE PROGRAM
How Does a Business Qualify?
Businesses must first register for participation in the program through the Town's Director of Business
Development, Bill Clark,
(401) 643-0382, Town Hall second floor, from January 1 to
November 30. There is no fee to register and no penalty if projected new hiring
is not achieved.
A registered business must increase local workforce by at least 5%
between date of application and December 31 of that calendar year, and must
show an increase in total Rhode Island payroll for the company versus total
Rhode Island payroll for the prior year, in order to be certified for the
tax credits. Before tax credits are approved a businesses must provide
certificates of good standing from RI Division of Taxation, RI Secretary of
State and the Town of Portsmouth.
Approval of an official registration/application form by the
Town’s Director of Business Development must precede any hiring
action for which tax benefits are sought.
At the time of registering, the
company states the number of full time employees currently on the payroll.
For this program, full time is considered thirty (30) hours or more per
week.
What are the Benefits?
Substantial Tax Incentives:
-
For hiring new workers:
Businesses located in the Enterprise Zone may
receive a Rhode Island income tax credit of 50% of wages paid to full time Rhode
Island resident worker(s) hired for each new position(s) during the calendar year
of hire, up to $2,500 per new hire. For hiring Rhode Island residents of any State
Enterprise Zone (all of Tiverton, Warren, most of Bristol and several other
communities are also in a Zone), the limit is 75% of new wages up to $5,000
each. Hiring may begin on the date of application. There is now a three-year
carry-forward of unused credit, provided total employment level is
maintained.
-
For living in an Enterprise Zone:
Some business owners who live in the same Enterprise Zone as their business and increase
local workforce as required above, may receive a $50,000 Rhode Island income tax deduction per
year for three years and a $25,000 deduction for two years thereafter. A
business can get either this benefit or the credit for hiring new workers
mentioned above.
-
For charitable assistance to government
projects in an Enterprise Zone:
Taxpayers may receive a 20% tax credit up to $10,000 for donations
to pre-approved public improvement projects located in the Enterprise
Zone.
Special State Assistance:
Several state agencies provide special assistance to qualified Enterprise
Zone businesses,
including expedited processing, priority funding, a dedicated State loan fund, job
training subsidies, job bank and technical assistance.
How Long Can My Company Be Certified?
Certification is for one calendar year at a time. Company may be recertified annually. A company that fails to meet the requirements for tax
incentives may submit another application for the next year.
How Do I Get More Information?
Information and applications for State and Town programs is available from
Director of Business Development
Bill Clark at (401) 643-0382 (fax (401) 683-6804). You
may also call Victor Barros, Account Executive, for
the State programs at (401) 277-2601 (fax (401) 277-2102)
PORTSMOUTH’S PROGRAM
-
TAX STABILIZATION PROGRAM FOR ADDED INVESTMENT IN PROPERTY:
For expansion or renovation of an existing facility, or construction of a new facility in
the Enterprise Zone, the percentage of new added taxable assessment shall be exempt from
Town property taxes as follows:
% Exempt From Taxation
Year 1 100%
Year 2 80%
Year 3 60%
Year 4 40%
Year 5 20%
Year 6 0%
Starting in year 6, the new added value will be taxed at the normal rate for the Town.
The tax exemption will not
apply to the value of the land. Leasehold improvements will be classified
as tangible personal property in order to qualify, as long as they are
attached to the building.
The Town Council reserves the right to negotiate additional tax stabilization for certain
major vacant industrial properties on a case-by-case basis.
-
CERTIFICATION of businesses for State; advice and assistance on application and
related programs.
-
FEDERAL FUNDS FOR PHYSICAL IMPROVEMENTS: New sidewalks, landscaping, removal of
utility poles, and street improvements on Park Avenue have been funded
and are awaiting RIDOT and utility company timing. Island
Park Playground completed 1997. Feasibility study addressing septic and sewer
issues throughout the Town. Pursue other appropriate grants for economic development.
-
RAILROAD REACTIVATION: Continue efforts to have rail line used for freight and
tourism.
-
BOOKLETS ON PERMIT PROCESS to help clarify basic rules, procedures,
approvals needed, contacts for assistance.
-
ISLAND PARK FAÇADE IMPROVEMENT GRANT
for enhancements to business properties on Park Avenue. Includes
professional architectural advice.
-
INFORMATION ON STATE AND FEDERAL PROGRAMS for businesses available upon request
from the Town Planner.
-
ECONOMIC DEVELOPMENT COMMITTEE to help represent concerns of business community,
foster economic development, do specialized studies and projects, and advise the Town
Council and other Town committees.
-
PROMOTIONAL MATERIALS on the Town, its economic development programs, facilities
and businesses.
-
TECHNICAL ASSISTANCE POOL: Reduced cost consulting through the Chamber of
Commerce. Call (401) 847-1600.
-
WHOLESALE INVENTORY TAX
EXEMPTION: Portsmouth has eliminated property taxes on
wholesale inventory.
The success of a
business is based on the support of the community. |