Rhode Island State Tax Credits

More ways to save your hard-earned money from the tax man!

Rhode Island has some great State Tax Credit for you.

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap
Rhode Island

Rhode Island Education Tax Credit Program

Overview:
This program offers Rhode Island businesses a state income tax credit of 75%–90% for donating to approved scholarship organizations, helping fund private K–12 student scholarships.

Who It’s For:
Businesses and pass-through entities filing taxes in Rhode Island that want to support education by contributing to state-approved Scholarship Granting Organizations (SGOs).

Four Key Highlights:

  1. 75%–90% Tax Credit on Donations

    • Receive 75% credit for a one-year donation or 90% for a two-year pledge (with at least 80% contributed in year two).

  2. $1.6M Statewide Credit Cap with Lottery if Oversubscribed

    • Credits are awarded on a first-come, lottery basis if total requests exceed the annual cap.

  3. Strict Compliance with CPA Verification & Original Certificate Filing

    • A Rhode Island CPA must certify the donation; the original tax credit certificate must be attached to your tax return (no copies accepted).

  4. 120-Day Deadline for Contribution After Approval

    • Businesses have 120 days from approval to donate directly to an approved SGO—not to schools or individuals.

CHECK IT OUT NOW

Rhode Island Qualified Jobs Incentive Tax Credit

Overview:
This incentive program offers businesses annual tax credits for up to 10 years when they create new, well-paying full-time jobs in Rhode Island, with enhanced credits available for high-impact industries and locations.

Who It’s For:
For-profit businesses in Rhode Island (or looking to relocate there) that plan to create at least 10–100+ full-time jobs, depending on industry and company size.

Four Key Highlights:

  1. Earn Up to $7,500 Per Job for 10 Years

    • Base credit ranges from $2,500 to $7,500 per job, with bonus credits for high wages, targeted industries, Hope Communities, or capital investments of $5M+.

  2. Flexible Job Thresholds Based on Industry & Company Size

    • Targeted industries with under 100 employees need only create 10 jobs; others may require 20+ or 10% of workforce growth depending on size.

  3. Credits Are Transferable & Carry Forward for 4 Years

    • Unused credits may be assigned, transferred, or carried forward, offering flexibility if liability doesn’t match earned credits.

  4. Annual Certification & Performance Review Required

    • To continue receiving credits, businesses must submit annual job reports and maintain job counts and wage levels—or risk recapture of credits.

CHECK IT OUT NOW

Rebuild Rhode Island Tax Credit

Overview:
This powerful real estate incentive supports commercial, residential, and mixed-use developments that face financial gaps—offering up to $15 million in tax credits per project, spread over 5 years.

Who It’s For:
Developers of qualifying real estate projects in Rhode Island—particularly those with strong economic, environmental, or community benefits—who can demonstrate the project wouldn't proceed without this credit.

Four Key Highlights:

  1. Up to $15 Million in Tax Credits per Project

    • Base credit covers up to 20% of eligible costs, with a possible 10% bonus for projects meeting historic preservation, transit-oriented, environmental, or affordable housing criteria.

  2. 5-Year Payout & Transferability

    • Credits are issued annually, typically between 15%–30% each year, and can be transferred or sold (with Tax Division notification), or redeemed for cash at 90% of face value.

  3. Rigorous Financial Gap Review Required

    • Applicants must submit a pro forma showing the project is financially infeasible without the credit—highlighting state ROI, private investment leverage, and community impact.

  4. Streamlined Application for Certain Projects

    • Projects involving certified historic structures, affordable housing, or manufacturing uses may qualify for a simplified submission and review process, expediting approval.

CHECK IT OUT NOW