PROVIDENCE – The R.I. Office of Revenue Analysis announced last week that it has proposed a schedule for analyzing the costs and benefits of state tax-incentive programs in 2015, 2016 and 2017.
The office said the studies will begin in 2015 with the Motion Picture Production Company Tax Credit, the Jobs Development Act, Distressed Areas Economic Revitalization Act and Incentives for Innovation and Growth.
The announcement stems from the recommendations of the “Moving the Needle” report, produced jointly last year by the Rhode Island Senate and the Rhode Island Public Expenditure Council. The January 2013 report called for a comprehensive review to measure the effectiveness and impact of Rhode Island’s economic-development tax incentives.
Tax incentives identified in legislation passed by the General Assembly last year must be initially evaluated within five years of passage of the act, and subsequently re-evaluated every three years.
According to a statement, the analysis scheduled for 2016 will look at: the Investment Tax Credits, including the Biotechnology Investment Tax Credit and the Specialized Investment Tax Credit, the Elective Deduction for Research & Development Facilities credits, and Tax Incentives for Capital Investment in Small Business.
In 2017, the Jobs Growth Act, the Job Training Tax Credit, the Artist Modification Reducing Adjusted Gross Income and the Welfare Bonus Program Tax Credit will be examined. •