In boating, an anchor is a mechanism used to hold a ship steady. In television, an anchor is a person who presents and coordinates. In sports, an anchor is the person on the team with the best ability. In Rhode Island, an anchor is a business that orchestrates the creation of new jobs.
In 2015, the Rhode Island Commerce Corporation and the Rhode Island Division of Taxation issued the Anchor Institution Tax Credit. This credit is one of several incentive programs offered by the State to local businesses committed to our economy. These credits were established to promote the retention and expansion of jobs and to stimulate growth in key development areas. The Anchor Institution Tax Credit rewards businesses that play a key role in bringing new jobs from suppliers and/or customers to the State. By taking advantage of the Anchor Institution Tax Credit, a business can reduce costs, increase efficiency, and spur supply chain collaboration.
The Anchor Institution Tax Credit requires the creation of at least 10 jobs on or before December 31, 2018, or 25 jobs on or before December 31, 2020. The applicant must play a key role in the decision of suppliers or customers to move to Rhode Island and create these jobs. The amount of the credit depends on the following criteria:
- Number of new full time jobs created
- Compensation and benefits of new full time jobs created
- Length of time that new full time jobs are committed to remaining in Rhode Island
- New full time jobs created in target industries
- New full time jobs created in target communities
- Other factors that display a benefit to the Rhode Island economy
Consider if you may be in a position to be an anchor for the state of Rhode Island. Do you have a steady business that helps the State economy? Do you have connections with your suppliers and customers that may allow you to present and coordinate a move for them to come to Rhode Island? Do you have the ability to play a key role in the growth of the Rhode Island economy? If so, the State is looking to partner with and reward you through the Anchor Institution Tax Credit.
For More Information
Below is a link to the Rhode Island Commerce Corporation website further discussing the Anchor Institution Tax Credit. From this website, you can obtain additional information, contact a representative, and begin the application process. This website will also provide information about the other incentive programs currently offered by the State. Also, contact us if you have any questions regarding the impacts that this credit may have on your tax returns.