Jobs Development Act: Corporate Income Tax Reduction for Job Creation
The Jobs Development Act (RIGL 42-64.5-1) provides an incremental reduction in the corporate income tax rate (currently 9%) to companies that create new employment in Rhode Island over a three-year period. The reduction equals:
- A quarter percentage point (0.25%) for every ten (10) new jobs created, for those companies having a baseline employment below 100; or
- A quarter percentage point (0.25%) for every fifty (50) new jobs created, for those companies having a baseline employment above 100.
The corporate income tax may be reduced to as low as 3%. The rate reduction is permanent as long as the company maintains the same level of employment that it had at the end of the third year following the companyís self-selected base period. New employees must be paid at least 150% of the state minimum wage (the current state minimum wage is $7.40/ hour.) This benefit is subject to a finding of revenue neutrality and vote of the RIEDC Board.
For More Information On Corporate Income Tax Rate Reduction
- RI Division of Taxation, Corporate Tax Division: (401) 222-1120
- RI Division of Taxation Regulations: http://www.tax.state.ri.us/regs/regs/ct02-11.htm
- RI General Law: http://www.rilin.state.ri.us/Statutes/TITLE42/42-64.5/INDEX.HTM
Jean Robertson