Raimondo, Commerce Corporation approve $9 million in tax incentives for local businesses
By: Elisha Kay Aldrich
Several local businesses will now be receiving $9 million in tax credits and grants for new construction, as well as research and development. The funds include one tax stabilization development, two Rebuild Rhode Island tax credit projects, and 11 “innovation vouchers.”
The funding, which was approved by Governor Gina M. Raimondo and the Rhode Island Commerce Corporation Board of Directors, will “[work] together to put shovels in the ground, re-energize vacant developments and bring more high-skill, high-wage jobs to our state,” Raimondo said.
“We provided vital funding for three construction projects that wouldn’t have been able to move forward otherwise and awarded almost half a million dollars in research and development grant funding, which will strengthen our growing innovation economy. Rhode Island has momentum again- we are showing we are competitive with other states and back in the game,” she added.
The City of Providence agreed to a tax stabilization agreement with PRI, which is a division of the Procaccianti Group, for a proposed 154-room extended-stay hotel where the Fogarty Building is currently located downtown. Providence is qualified for a reimbursement from the Commerce Corporation valued at up to 10 percent of the projected forgone revenue, or $246,597.
The incentive gives municipalities a reason to enter into stabilization agreements by reimbursing them up to 10 percent of the forgone revenue due to the completeion of a stabilization agreement that spans at least 12 years. Qualifying projects must be at least $10 million and create 50 job; or $5 million and create 25 jobs in Hope communities.
“This project creates jobs, revitalizes a blighted portion of our downtown and helps spur economic growth,” said Providence Mayor Jorge Elorza. “As one of the largest development projects this city has seen in years, moving this project forward is important to the development of our downtown landscape.”
The two Rebuild Rhode Island tax credit projects are the Commons at Providence Station, and a proposed mixed-use development at the site of the former Louttit Laundry complex at Hoyle Square in the West End of Providence. The Commons is a proposed development which would include 160 market-rate residential units located at Canal and Smith streets. The project was approved for a $5.5 million tax credit over a five year period. The Louttit Laundry development was approved for a $2.7 million tax credit, also over a five year period.
“Innovation vouchers” were given to 11 out of 34 applicants, which represented businesses from a number of sectors all over the state, including aquaculture, defense, advanced manufacturing, biomedical engineering and more. The grants will allow each company to partner with a local university, research center or medical center for research and development assistance. In total, all 11 applicants were given $451, 897.25. They are: Agcore Technologies LLC, Applied Radar, Inc., CBC, LLC, Epivax, Inc., Full Measure, LLC, HMSolution Inc., Materials Science Associates, LLC, Pilgrim Screw Corporation, S2S Surgical, LLC, Vitae Industries, Inc. and Yushin America, Inc.
Those interested can find out more at http://commerceri.com/services/taxes-incentives.
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