PROVIDENCE – CVS Caremark Corp. received nearly 40 percent of the $33.12 million in business tax credits that the state handed out during the fiscal year that ended June 30, according to a new report.
In all, 88 businesses received one of the six types of tax breaks allowed by state law between July 1, 2008, and June 30, the report by the R.I. Department of Revenue’s Division of Taxation said.
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The highest total was for Jobs Development Act credits ($14.2 million), followed by film and TV production credits ($10.05 million); R.I. Economic Development Corporation project credits ($7.35 million); distressed area enterprise zone credits ($1.07 million); and innovation and growth incentive credits ($450,000). No mill building revitalization credits were handed out.
Most of the businesses got relatively small amounts, like the $2,450 credit received by Jimmy Stuart Carpet & Upholstery Cleaners Inc. in Warren for locating in a distressed area. But a few larger companies like Woonsocket-based CVS Caremark got much larger amounts.
The vast majority of the $12.83 million in tax breaks the state gave CVS was for jobs development ($11.43 million). The state also let CVS keep $1.25 million in sales tax payments, and gave the company $131,294 for job training, $17,010 for providing day care, and $2,134 for locating in a distressed area.
After CVS, the top recipients of state tax credits were Brotherhood Productions Inc. ($5.07 million), a Fidelity Investments subsidiary ($5.04 million), Social Capital Films ($2.24 million) and Bank of America Corp. ($2.21 million).
Social Capital and seven other movie companies shared the $10 million in film and TV production tax credits given out last year.
Additional information, including the full report on tax credits, is available at RI.gov.
Just Curious. Does the state know what the Economic multiplier effect this has. If people are employed, don’t they spend on items like houses, clothing, and food. How much in income tax do they pay? How much in property tax? How much in sales tax?
Economic incentives are not total give aways