How Does a Business Qualify?
Businesses must first register for participation in the program through Bill Clark, the town's director of business development.
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.
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 30 hours or more per week.
What are the Benefits?
Substantial Tax Incentives:
- For hiring new workers:
- Businesses located in the Enterprise Zone 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 during the calendar year of hire, up to $2,500 per new hire. For hiring Rhode Island residents of any state Enterprise 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 the following types of special assistance to qualified Enterprise Zone businesses:
- Dedicated state loan fund
- Expedited processing
- Job bank
- Job training subsidies
- Priority funding
- Technical assistance