AN ACT RELATING TO TAXATION -- RHODE ISLAND LOCAL INVESTMENT TAX CREDIT ACT

This bill creates a tax credit program to encourage investments in small Rhode Island businesses with 99 or fewer employees. Under the new Rhode Island Local Investment Tax Credit Act, eligible taxpayers who invest in qualifying local businesses could receive a 50% tax credit, up to a maximum of $3,000 per business and $3,000 total per year. To qualify, the business must be headquartered in Rhode Island, derive at least 80% of its revenue from state operations, and hold at least 80% of its assets within the state. The state would annually appropriate funds from the general fund to offset any revenue loss from the tax credits, and the Rhode Island Commerce Corporation Strategic Fund would manage the certification process for eligible investments.