Woonsocket - RI Job Training Tax Credit

The Rhode Island Jobs Training Tax Credit allows companies to take a tax credit up to $5,000 per employee over a three year period against their state business tax for the retraining or upgrading of their employees. The credit is limited to 25% of the actual training cost in 1996 and 50% of the cost thereafter.

IMPORTANT: Employer, Employee and Training Qualifications apply. No tax credit will be granted a company without the prior approval of HRIC. Training dollars expended and taken as a credit under other state tax programs are not eligible for the Jobs Training Tax Credit.

INFORMATION:

For more information about the Jobs Training Tax Credit or to receive an application package, contact the RI Human Resource Investment Council at 401-277-6700.

Technical Assistance - the state's three Regional Employment and Training Boards are available to provide technical assistance.

Northern RI RETB: 333-3944 x23

QUALIFICATIONS

1. Employer
All for-profit RI businesses are eligible to take advantage of the tax credit except for certain professional services such as medical, legal, accounting, engineering and other similar services.

2. Employees
Qualifying employees must meet all of the following criteria:
- Generally cannot earn more than $80,000 annually (see U.S.C. Code 414q)
- Must work a minimum of 30 hours per week at the time of training and for 18 months upon completion of training
- Upon completion of the program, must earn 150% of Rhode Island's hourly minimum wage

3. Training
Qualifying training programs are those that improve the skills necessary to improve work performance. Orientation programs, general health programs and seminars/conferences not directly related to the employee's job description do not qualify. Training must take place within Rhode Island. In some cases, a training program may be required to take place outside of the State. In such instance, the employer must prove that the training is not available at any location in the State or that the training is available at a lower price out of the State.

The Rhode Island economic Development Corporation (EDC) has developed an aggressive legislative agenda to help Rhode Island companies compete into the next century. To add to an already competitive training program, EDC sponsored the RI Jobs Training Tax Credit to encourage all Rhode Island businesses to upgrade the skills of their workforce.

Administered by the Rhode Island Human Resource Investment Council, this tax credit makes it easier for Rhode Island companies to invest in training by allowing a portion of direct costs to offset business income tax. Successful companies continuously invest in their workers and quality training programs. This tax credit allows companies to plan for long term, quality training