State Enterprise Zones
Any business with a certified business facility within a state-designated Enterprise Zone or a Federally-designated Enterprise Community in Rhode Island may qualify for the following incentives:
- Enterprise Zone Business Tax Credit: Firms that increase total company employment by 5 percent each year within an enterprise zone may take a credit equal to 75% of the total wages paid to employees living in an enterprise zone or 50% of wages paid to workers not living in an enterprise zone. The maximum credit is $5,000 per enterprise zone resident employees and $2,500 for other enterprise zone employees. Earned but unused enterprise zone credits may be carried forward for up to three (3) years.
- Enterprise Zone Business Owner Modification: An enterprise zone business owner may elect to take the Owner Modification instead of the Business Tax Credit. In computing his or her personal income tax, an owner of a qualified business facility in an enterprise zone, who also resides within that same enterprise zone, may deduct $50,000 per year as a modification reducing federal adjusted gross income during the first three years of operation; and $25,000 during the fourth and fifth years. To take this income modification, the business must meet the 5% employment growth requirements of the regular EZ business tax credit (see above). Owners can take either the Tax Credit or the Owner Modification, but not both.
For More Information Follow These Web Links
- RI General Law: http://www.rilin.state.ri.us/Statutes/TITLE42/42-64.3/INDEX.HTM
- RIEDC: RIEDC - Enterprise Zones - Application & Certification
Jean Robertson