R.I. tax division OKs regs for incentives, credits

PROVIDENCE – The R.I. Division of Taxation has approved final regulations that offer guidance to companies on the requirements and process for requesting three kinds of tax incentives or tax credits created in the fiscal 2016 budget.
The Anchor Tax Institution program, the Rebuild Rhode Island Tax Credit program and the Rhode Island Qualified Jobs Incentive Act of 2015 were approved by the General Assembly in June, largely as proposed by Gov. Gina M. Raimondo.
The programs create incentives for businesses to either create new jobs or invest in development.
The Rebuild Rhode Island Tax Credit is aimed at stimulating investment and growth in real estate developments, including historical structures and existing structures near mass transit. It is intended to help development companies cover the financial feasibility gap that developers say hinders statewide development, because of commercial tax rates and construction costs that are comparable to cities that command higher rents.
The program received $2 million this year, with the goal of providing $60 million over the next five years. The program will provide a maximum of 30 percent of a project cost through tax credits over five years. The credit amount is capped at $15 million.
The regulations approved by the taxation department mirror those posted recently by the R.I. Commerce Corp.
For more information, view the rules and regulations tab, at the bottom of the commerce site, at http://commerceri.com/services/taxes-incentives/