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Rhode Island Updates Tax Credits

July 21, 2022

Attention Rhode Islanders…Governor Dan McKee recently signed legislation modifying the Rebuild Rhode Island Tax Credit, RI Qualified Job Incentive Act of 2015 and more. Here’s what you should know.

What’s new in Rhode Island? You will want to read up on some important modifications and extensions to certain tax credits and deductions. We have the details here.

What has changed?

  1. Certain sunset dates have been extended

    The Rebuild Rhode Island Tax Credit and tax credits related to the Rhode Island Qualified Jobs Incentive Act of 2015 program now have a sunset date of December 31, 2023 (formerly December 31, 2022). Rebuild RI helps companies with real estate projects for which they are having difficulty raising sufficient funding. The program provides financing through redeemable tax credits which can cover up to 30% of project costs. Jobs Incentive credits provide redeemable credits for up to 10 years.

    The popular Historic Preservation Tax Credits 2013 program targeting historic structures has been extended from June 30, 2022 to sunset on June 30, 2023, or whenever maximum aggregate credits are met, whichever comes first.
  2. Limits to motion picture production company tax credit raised

    For the 2022 tax year, a maximum of $30 million in total tax credits can be issued for motion picture tax credits and/or musical and theatrical production tax credits to encourage development within the motion picture industry in Rhode Island.
    Under the new law, exclusively for tax years 2023 and 2024, the total amount of production tax credits has been raised to a maximum of $40 million. The credit program is scheduled to sunset in July 2027.

  3. New definitions under Healthcare for the Stay Invested in RI Wavemaker Fellowship Fund

    The Wavemaker fellowship program is used to strengthen the workforce in STEM (Science, Technology, Engineering and Mathematics) fields. It offers student loan reimbursement for graduates working in STEM and certain design fields. It has now been expanded to include health and mental health professionals, while other definitions under this initiative have been updated and revised. A “healthcare applicant” refers to any applicant who meets the eligibility criteria and works full- as a high-demand healthcare practitioner or mental health professional.

    The fund will be used to redeem tax credits applied against the tax liability of any healthcare applicant who received an award on or after July 1, 2022. Additionally, the sunset date for all incentives and credits authorized by the Wavemaker Fellowship is extended to December 31, 2023 (from December 31, 2022).

Questions on the changes? Contact us.

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