Since its creation in 2016, the Rebuild Rhode Island Tax Credit program has funneled tax incentives to 35 large-scale projects, spurring more than $2 billion in private investment, according to the R.I. Commerce Corp. But with the state economy humming along, officials have decided it’s time to invest in other tiers of the economic scaffolding, too.
For the first time, economic-development officials overseeing Rebuild RI are courting smaller projects. R.I. Commerce Secretary Stefan Pryor said $15 million in tax credits set aside for smaller-scale work can potentially spark revitalization regardless of projects’ size.
“Now that our economy has strong momentum … we ought to be focusing on our smaller economic engines that in the aggregate contribute dramatically and positively to our economy,” Pryor said.
For the state’s manufacturers, many of whom are small businesses, the redeemable tax credits could be a welcome boost after months of economic uncertainty caused by tariffs on imported materials and the status of the not-yet-ratified United States-Mexico-Canada Agreement.
Two members of the Rhode Island Manufacturers Association have applied for tax credits under the program, and the association planned to seek more involvement.
“We’re going to put a push on it … with some of the companies and see if they’re interested in getting involved,” said David Chenevert, association executive director.
The effort, which is part of the larger $210 million Rebuild RI Tax Credit program, is focused on development projects in manufacturing, historic rehabilitation, and in the state’s so-called “Hope” communities of Central Falls, Pawtucket, Providence, Warwick and West Warwick. As of early January, the program had attracted six applicants.
Pryor won’t name individual applicants, but he said “there’s been interest both in the manufacturing and the historic rehabilitation enhancements” to the program.
“I am very pleased with the level of interest and the number of applications that have already arrived,” he said. “With most of our programs, applications tend to be turned in right at the deadline, so this is a good sign.”
Proposals under the newly created subsection of the tax program don’t have to adhere to requirements for the overall program, which calls for projects to encompass a minimum of 25,000 square feet, meet a $5 million cost threshold and involve space for 25 or more employees.
The reworked requirements mean that half or more of the state’s manufacturers have a shot at the program, Chenevert said. The association had been pushing for lawmakers and Commerce RI to open Rebuild RI to development proposals from smaller businesses.
“Of the 1,600 manufacturers, I’m going to say roughly 50% or 75% are small companies, they employ under 60 people … so they’re not going to go out there and spend $10 million on a new building,” he said. “They need assistance in the $500,000 to $1 million range for an expansion operation.”
It’s not clear yet whether there have been any applications from within the state’s five Hope communities. The application deadline is Jan. 15, and decisions will be announced in the spring.
Elizabeth Graham is a PBN staff writer. Contact her at Graham@PBN.com.