Rhode Island is investing in economic growth by offering targeted tax credits designed to support business expansion, job creation, and real estate development. If your company is planning a project in the Ocean State, these programs can significantly reduce costs and improve long-term return on investment.

Two of the most valuable incentives available for Rhode Island businesses companies looking to move to the state include the Rebuild Rhode Island Tax Credit and the Jobs Growth Act. While the Rebuild Rhode Island Tax Credit helps close financing gaps for large projects, the Jobs Growth Act focuses on rewarding companies that create substantial, high paying jobs by offering tax advantages tied to employee compensation. Businesses that strategically align project investment with workforce expansion can unlock significant value, making how these incentives are structured and utilized a true game changer for long-term growth.

Rebuild Rhode Island Tax Credit

The Rebuild Rhode Island Tax Credit program helps businesses close financing gaps for large scale development and redevelopment projects. If your project struggles to move forward due to funding shortfalls, this program can provide the boost you need.

This credit’s purpose is to offset a portion of project costs when a financial gap exists. This incentive is typically applied to commercial, industrial, mixed use, and residential developments driving economic growth.

These credits can be used to:

  • Offset corporate income tax liability
  • Reduce insurance premium taxes
  • Transfer or sell credits for immediate capital

This flexibility allows companies to monetize credits and reinvest them directly into projects.

The program targets developments that deliver measurable economic impact. Qualifying projects often include:

  • Ground up construction
  • Historic rehabilitation
  • Adaptative reuse of existing buildings
  • Mixed use developments in urban and growth areas

Projects must demonstrate that the tax credit is necessary for financial feasibility and that the investment will generate tax revenue, community revitalization, and generate jobs.

There is a minimum project cost of $5 million with certain project size/square footage minimums. Projects that are approved can also be exempted from sales tax on furnishings, equipment, and construction materials.

Jobs Growth Act

The Jobs Growth Act program is designed to help Rhode Island attract large-scale employers while also encouraging the creation of high-paying jobs. The program rewards companies making significant workforce investments by providing tax advantages tied directly to employee compensation.

This program allows qualified companies to offer tax savings linked to performance-based compensation. In practice, this means employees can receive partial exemptions on bonuses, making compensation packages more competitive and attractive.

Businesses can use this structure to:

  • Recruit top tier talent in competitive industries
  • Offset the cost of large-scale hiring initiatives
  • Improve retention through enhanced compensation packages

This makes the program especially valuable for companies relocating/considering relocating to Rhode Island or expanding their presence with highly skilled positions.

To qualify, companies must demonstrate a strong commitment to job creation and wage growth. Key thresholds generally include the creation of at least 100 new full-time jobs, $10 million in new annual payroll, and compensation levels that exceed 125% of the state average wage. These requirements ensure that the program targets substantial economic impact and supports quality job growth across the state.

Take the Next Step

Rhode Island offers a compelling mix of incentives that support both job growth and high-quality job creation. With tools like the Rebuild Rhode Island Tax Credit and the Jobs Growth Act, businesses can reduce upfront costs while building a strong, competitive workforce.

Companies that take a strategic approach to aligning capital investment with hiring and compensation initiatives are best positioned to unlock the full value of these programs. The result is not just cost savings, but a stronger foundation for long-term growth in one of the Northeast’s most business-focused states.

The KE Andrews Site Selection & Incentives Advisory Practice helps businesses turn opportunities into results. Our team identifies eligibility, structures incentive strategies, and manages the process from application through realization. With deep experience across state and local programs, KEA ensures your business captures the maximum available benefit while staying focused on growth.