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State and Local Tax

Rhode Island Extends and Modifies Tax Credits

by Tyna Mikulec, Esq.

On June 27, 2022, Rhode Island Governor Dan McKee signed legislation that modified provisions for the Rebuild Rhode Island Tax Credit; tax credits related to the Rhode Island Qualified Jobs Incentive Act of 2015; Stay Invested in RI Wavemaker Fellowship; and motion picture production company tax credit. (L. 2022, H7123 (c. 231), effective 06/27/2022.)

Extended sunset dates.

The sunset date is extended from December 31, 2022 to December 31, 2023 for: (1) the Rebuild Rhode Island Tax Credit and (2) tax credits related to the Rhode Island Qualified Jobs Incentive Act of 2015. The sunset date is extended from June 30, 2022 to June 30, 2023, or upon the exhaustion of maximum aggregate credits, whichever comes first, for the Historic Preservation Tax Credits 2013.

Wavemaker Fellowship.

Definitions are added to the laws governing the “Stay Invested in RI Wavemaker Fellowship,” related to the establishment of the new ”Healthcare Stay Invested in RI Wavemaker Fellowship Fund.” A “healthcare applicant” means any applicant that meets the eligibility requirements and works as a full-time employee as a high-demand healthcare practitioner or mental health professional. Terms were created to distinguish the original fund created under the law from the new fund established by the bill, “STEM/design fund” and “healthcare fund,” respectively. The healthcare fund will be used to pay for the redemption of tax credits applied against the tax liability of any healthcare applicant that received an award on or after July 1, 2022. Lastly, the sunset date for all incentives and credits authorized by the Wavemaker Fellowship is extended from December 31, 2022 to December 31, 2023.

Motion picture production company tax credit.

Exclusively for tax year 2023 and tax year 2024, the total amount of motion picture tax credits issued and/or musical and theatrical production tax credits cannot exceed $40 million.

 

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