Governor: Rep’s jobs bill ‘one piece of the puzzle’

Shekarchi seeks tax credits for employers creating RI jobs

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There’s advantage to getting above things. You can see what’s below, and you gain a view of what could happen.

State Rep. K. Joseph Shekarchi wanted that perspective when he announced Tuesday he will, for the third year, introduce legislation aimed at creating jobs by rewarding companies that locate in Rhode Island or create new jobs here with tax credits.

Shekarchi picked the roof of the Interlink garage overlooking T.F. Green Airport and the site of City Centre Warwick for his announcement. He wasn’t alone, either, which is an indicator that this year the measure could go places.

With a ray of sunshine, House Speaker Nicholas Mattiello said state revenue projections are $60 million better than anticipated, and “it could be a little more than that.”

Mattiello said Shekarchi’s bill died last year because “we didn’t have the money.” This time, he said, “we are going to be able to make some things better.”

Also joining Shekarchi and Mattiello on the rooftop were Gov. Gina Raimondo, Warwick Mayor Scott Avedisian and a bevy of business leaders.

Raimondo said, “Rhode Islanders should feel optimistic today.” She pointed out that the executive and legislative branches of government are focused on the economy and creating new jobs and working together. She called Shekarchi’s bill “one piece of the puzzle,” saying other measures are needed regarding business taxes. She would like to eliminate the tax on commercial energy usage.

Raimondo said Shekarchi’s bill serves to “send a loud and clear signal that Rhode Island is serious.”

The rooftop announcement was one of three events during which Raimondo voiced her jobs message Tuesday. Earlier in the day, she spoke at the internship recognition event for employers held by the Rhode Island Student Loan Authority at the State House.

Then, that afternoon, she was in Newport for the opening of the Volvo Ocean Race Village at Fort Adams.

At the RISLA event, she stressed the importance of developing a workforce with a steady stream of talents and skills. She said internships have an important role. As part of her plan to train a workforce, she spoke of her Last-Dollar Scholarship Program aimed at bridging the financial gap some students face, and “dual enrollment” through which high school students can take college courses while enrolled in high school.

At the State House, she also zeroed in on taxes.

“We need to make it cheaper and easier to do business,” she told the corporate representatives and their interns seated in the State Room.

In Newport, where she opened the ocean race village and new deepwater 240-foot state pier, the governor applauded Brad Read and all those who have brought the premiere world-class sailing event to the state. She then, again, underscored the importance of the state’s economy.

“I wake every day committed to getting Rhode Islanders to work,” she said.

The announcement in Warwick was thin on details.

Shekarchi is to submit an amendment to expand the Rhode Island Quality Jobs Incentive Program. According to a press release, the initiative will provide tax credits to eligible businesses that create new jobs through 2020 and will encourage the creation of high-quality jobs in priority industries and areas. Additional incentives may be provided to communities most in need and areas located in transit hubs, hence the reason for selecting the Interlink to make the announcement.

The tax credits will range from $2,500 to $7,500 per job created, depending on the wage paid and industry. As a means of making the program “revenue neutral,” the income taxes generated by the new jobs would be set aside to offset the aggregate amount of the tax credits. The credit will not exceed the amount of state income taxes generated by the position.

In his remarks Shekarchi said, “For larger, well-established companies, the incentives outlined in this bill could provide the confidence they need to add jobs by locating new operations in Rhode Island, or expanding existing operations here. And for smaller businesses just starting out, this incentive could provide the additional cash flow they need to put their companies on more stable ground to grow.”

He said in an interview Wednesday that the bill is directed at creating jobs paying $48,000 or more, not the service jobs of the hospitality industry. Recognizing that start-up companies may not need tax credits, Shekarchi said the bill would provide for the state to “buy back” the credits at 90 cents on the dollar.

Two of several developers present for the announcement, Michael Integlia and Hugh Fisher, were excited by what they heard. Integlia, who bought the former Leviton manufacturing property and in the last three months leveled the historic Elizabeth Mill on Jefferson Boulevard, believes the tax credits could stimulate new business development and in that process improve wages across the board.

Integlia shared an architect’s rendering of what he plans to build on the site of the former mill with Raimondo. He said the development would have the address of 1 City Centre Warwick.

“We’re on the verge of greatness again,” he assured.

Fisher, a homebuilder, didn’t have a read on what tax credits could do for him. He offered another perspective.

“I like the idea they’re going to work together to make this happen,” he said. “Forget the politics, let’s get things done.”

According to Shekarchi, tax credits will be subject to rigorous accountability provisions and the Commerce Corporation will not release credits until the jobs are filled and the taxes are paid on the positions. The Division of Taxation will audit these tax credits annually. If a firm fails to maintain the majority of its jobs, the credits will cease and a fine could be imposed.

Reached after the press conference, Shekarchi said the bill would expand tax credits already earmarked for CVS Health, Fidelity and Electric Boat to large and small companies across the state. He said the program has been proven successful, and he believes it will be successful on a much larger scale.

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