NH Statewide Economic Development Agencies

NH Utilities

NH Regional Economic Development Agencies

NH County Economic Development Agencies

NH City Economic Development Agencies

New Hampshire State Incentives

ECONOMIC REVITALIZATION ZONE TAX CREDITS (erz): Short term, tax credits against the business profits and enterprise taxes. To qualify, the location must meet certain demographic criteria, or be located in an unused or under utilized industrial park, or vacant land, or structures previously used for industrial, commercial, or retail purposes but currently not so used, or Brownfield site. The maximum credit over five years is $200,000, capped at $40,000 per year.

R&D TAX CREDIT: Small and large businesses can apply for tax credit on new research and development costs. The state has set aside $1million a year to fund the credit which is capped at $50,000 for any business that qualifies. This credit may be carried forward for up to five years.

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG): This assistance can be in the form of a grant to the municipality for the public infrastructure improvements on behalf of an expanding business or a loan to the business itself. The maximum amount of funding available for any given project is $500,000, regardless of size of the community applying for the grant. All grants have a one-year duration, and one job must be created for each $20,000 in CDBG funds granted. The key to this federal program is that a minimum of 60 percent of the jobs created must be filled by low and moderate-income persons.

The JOB TRAINING GRANT PROGRAM is a 50/50 cash match for customized training. There is a $100,000 cap on the training amount. Each application is reviewed on a case by case basis with an emphasis on improving the skills of current or new employees.

The COOS County Job Creation Tax Credit is a tax credit to businesses hiring new employees in COOS County and paying wages equal to or above 200 percent of minimum wage ($7.25 per hour). The credit is $1,000 for any new, full-time, year-round jobs applied to the Business Enterprise Tax, but any unused portion of the credit can be applied to the Business Profits Tax. All new jobs created after the bill’s effective dates are eligible for the credit and there is no cap on the amount of jobs created. The carry forward is five years.

INDUSTRIAL REVENUE BONDS: This program is for manufacturers only – companies which manufacture or produce tangible personal property. At least 75 percent of bond proceeds must be spent on core manufacturing space and equipment. Storage, office and R&D space must be excluded from this calculation. To be cost effective, loans must range between 1.5 and 20 million dollars. The interest rate is about 70 percent of prime and can be used for the purchase of land, buildings, and capital equipment.

NH-CDFA TAX CREDITS: The New Hampshire Community Development Finance Authority (CDFA) awards up to $5 million a year in New Hampshire Tax Credits to nonprofit organizations. These organizations then sell the Tax Credits to New Hampshire businesses as a way to raise needed capital for community projects around the state. In exchange for the contribution, a company can take 75 percent of the donation as a tax credit on their BET, BPT, or Insurance Premium Tax.

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NH Statewide Economic Development Agencies

NH Utilities

NH Regional Economic Development Agencies

NH County Economic Development Agencies

NH City Economic Development Agencies

New Hampshire State Incentives

ECONOMIC REVITALIZATION ZONE TAX CREDITS (erz): Short term, tax credits against the business profits and enterprise taxes. To qualify, the location must meet certain demographic criteria, or be located in an unused or under utilized industrial park, or vacant land, or structures previously used for industrial, commercial, or retail purposes but currently not so used, or Brownfield site. The maximum credit over five years is $200,000, capped at $40,000 per year.

R&D TAX CREDIT: Small and large businesses can apply for tax credit on new research and development costs. The state has set aside $1million a year to fund the credit which is capped at $50,000 for any business that qualifies. This credit may be carried forward for up to five years.

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG): This assistance can be in the form of a grant to the municipality for the public infrastructure improvements on behalf of an expanding business or a loan to the business itself. The maximum amount of funding available for any given project is $500,000, regardless of size of the community applying for the grant. All grants have a one-year duration, and one job must be created for each $20,000 in CDBG funds granted. The key to this federal program is that a minimum of 60 percent of the jobs created must be filled by low and moderate-income persons.

The JOB TRAINING GRANT PROGRAM is a 50/50 cash match for customized training. There is a $100,000 cap on the training amount. Each application is reviewed on a case by case basis with an emphasis on improving the skills of current or new employees.

The COOS County Job Creation Tax Credit is a tax credit to businesses hiring new employees in COOS County and paying wages equal to or above 200 percent of minimum wage ($7.25 per hour). The credit is $1,000 for any new, full-time, year-round jobs applied to the Business Enterprise Tax, but any unused portion of the credit can be applied to the Business Profits Tax. All new jobs created after the bill’s effective dates are eligible for the credit and there is no cap on the amount of jobs created. The carry forward is five years.

INDUSTRIAL REVENUE BONDS: This program is for manufacturers only – companies which manufacture or produce tangible personal property. At least 75 percent of bond proceeds must be spent on core manufacturing space and equipment. Storage, office and R&D space must be excluded from this calculation. To be cost effective, loans must range between 1.5 and 20 million dollars. The interest rate is about 70 percent of prime and can be used for the purchase of land, buildings, and capital equipment.

NH-CDFA TAX CREDITS: The New Hampshire Community Development Finance Authority (CDFA) awards up to $5 million a year in New Hampshire Tax Credits to nonprofit organizations. These organizations then sell the Tax Credits to New Hampshire businesses as a way to raise needed capital for community projects around the state. In exchange for the contribution, a company can take 75 percent of the donation as a tax credit on their BET, BPT, or Insurance Premium Tax.

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NH Statewide Economic Development Agencies

NH Utilities

NH Regional Economic Development Agencies

NH County Economic Development Agencies

NH City Economic Development Agencies

New Hampshire State Incentives

New Hampshire has no broad-base personal income tax and no tax on: sales, inventory, personal business property, capital gains, professional service, custom/modified software, equipment/machinery, and no Internet taxes.

AThe Community Reinvestment Opportunity Program (CROP) is a new incentive for businesses to create jobs. With the CROP Zone Business Tax Credit Program, companies may be eligible for tax credits to be used against the Business Profit Tax and Business Enterprise Tax. Qualifying CROP projects must create new jobs and expand the economic base for the state. Projects can range from the creation of new facilities to the rehabilitation of existing structures. The program has $825,000 in tax liability credits available.

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CT Statewide Economic Development Agencies

CT Utilities

CT Regional Economic Development Agencies

CT County Economic Development Agencies

CT City Economic Development Agencies

Connecticut State Incentives

URBAN AND INDUSTRIAL SITE REINVESTMENT TAX CREDIT: Dollar-for-dollar corporate tax credit of up to 100 percent for an investment up to a maximum of $100 million in an urban area or an industrial project; minimum investment is $5 million in distressed communities and $50 million in all other communities.

FILM PRODUCTION & DIGITAL MEDIA TAX CREDIT: A tax credit equal to 30 percent of qualified digital media and motion picture production, pre-production and post-production expenses in the state that exceed $50,000.

JOB EXPANSION TAX CREDIT (JET): Connecticut businesses can be eligible for tax credits of $500 per month for each new full-time job created. If the new employee is receiving vocational rehabilitative services from the Bureau of Rehabilitative Services, receiving unemployment benefits or is a veteran employee who, at the time of hiring by the taxpayer, is a member of, was honorably discharged from or released under honorable conditions from active service in the armed forces, then the tax credit is increased to $900 per month.

RESEARCH AND DEVELOPMENT TAX CREDITS: A tax credit equal to 20 percent of the R&D expenditures in Connecticut in the current income year exceeding R&D expenditures of the prior taxable year; unused R&D credits can be carried forward and, for companies with gross income of $70 million or less, can be sold to the state for 65 percent of their value; credit equal to 100 percent of property taxes owed and paid on electronic data processing hardware peripheral equipment and software; credit may be applied against certain other Connecticut taxes.

CORPORATE BUSINESS TAX CREDITS: Financial institutions constructing new facilities and adding new employees can receive a credit of as much as 50 percent of the tax for up to 10 years; may be extended for an additional 5 years; based on size of the facility and level of employment.

CORPORATE BUSINESS TAX EXEMPTIONS: Available for:

• All insurance companies, Connecticut incorporated and non-Connecticut incorporated
• Corporate income, insurance premium and sales and use taxes for certain banks, insurers and investment companies locating in the Hartford Financial Service Export Zone that conduct all business with non-U.S. persons
• Capital gains from the sale of protected open space or Class I or II water company land to the state or certain entities
• Non-U.S. corporations whose sole activities in CT are trading stocks, securities or commodities of their own account

SMALL BUSINESS EXPRESS PROGRAM (EXP): Provides loans and grants to Connecticut’s small business to spur job creation and growth. Small businesses employing not more than 50 employees are eligible.  Assistance focuses on:

• Access to capital (EXP Revolving Loan Fund)
• Incentive loan and grants to create jobs (EXP Job Creation Incentive & EXP Job Creation Matching Grant)

SMALL BUSINESS ASSISTANCE REVOLVING LOAN PROGRAM: Provides Connecticut’s small businesses with the financial resources they need to operate and grow in the State.  Connecticut-based businesses with less than 100 employees are eligible for loans and lines of credit of up to $500,000.

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ME Statewide Economic Development Agencies

ME Utilities

ME Regional Economic Development Agencies

ME County Economic Development Agencies

ME City Economic Development Agencies

Maine State Incentives

COMMERCIAL LOAN INSURANCE PROGRAM: Insures a portion of a loan to a business made by a participating financial institution. Insurance Types:

• Pro-rata: covers a certain percentage of lenders loss after a default and liquidation, up to 100 percent.
• Leveraged: Covers 100 percent of lenders loss up to 25 percent of the loan amount.

PINE TREE DEVELOPMENT ZONE PROGRAM: Offers eligible businesses the chance to greatly reduce or virtually eliminate state taxes for up to ten years. Eligible Sectors include Biotechnology, Aquaculture and Marine Technology, Composite Materials Technology, Environmental Technology, Advanced Technologies for Forestry and Agriculture, Manufacturing (including Precision Manufacturing) IT and Financial Services.

SMALL ENTERPRISE GROWTH FUND (SEGF): Provides Maine companies and entrepreneurs access to patient sources of venture capital. The fund is a $9 million dollar revolving, “evergreen” fund. The SEGF is a professionally managed venture capital fund that invests exclusively in Maine companies that demonstrate a potential for high growth and public benefit.

STATE SMALL BUSINESS CREDIT INITIATIVES (SSBCI): $13.2 million in funds will help create new private sector jobs and spur more than $132 million in additional small-businesses lending in the state. The funding will take place in three stages, with the first allocation of $4.3 million now taking place. The SSBCI funds will be used to recapitalize three existing, successful programs:

1. $7 million will be available to a group of 15 regional economic development agencies to make loans to businesses in their area. See FAME’s Regional Economic Development Revolving Loan Program.
2. $3.2 million will be allocated to FAME for the Economic Recovery Loan Program – loans of up to $1 million that meet the program’s underwriting requirements, which can be used statewide;
3. $3 million will be allocated to the Small Enterprise Growth Fund–Maine’s state-run venture capital fund.

ECONOMIC RECOVERY LOAN PROGRAM: Provides subordinate (gap) financing to assist businesses in their efforts to remain viable and/or improve productivity. From time to time, funds are used to address specific business community needs. Maine-based businesses that exhibit a reasonable ability to repay the loan and demonstrate that other sources of capital have been exhausted are eligible for the $750,000 maximum loan amount. Interest rate is fixed at Wall Street Journal Prime plus 2 percent, set at commitment. Loan term is a maximum of five years. Amortization may be based on the useful life of the assets being financed or additional collateral pledged. Balloon payments typically required.

SEED CAPITAL TAX CREDIT: Designed to encourage equity and near-equity investments in eligible Maine businesses, directly and through private venture capital funds. State income tax credits may be authorized to investors for up to 60 percent of the cash equity they provide to eligible Maine businesses. Investments may be used for fixed assets, research or working capital.

MAINE ECONOMIC DEVELOPMENT VENTURE CAPITAL REVOLVING INVESTMENT PROGRAM: Designed to allow the State to invest as an equal partner with others in eligible private venture capital funds to support emerging and early-growth businesses in Maine. There is a maximum investment of $1,000,000 per fund. It is intended to utilize experienced professional fund managers to increase the probability of successful investments in recipient companies and is available only to established venture capital funds that have a strategy for the creation and retention of jobs in Maine through:

• Investments in Maine high-growth businesses.
• A marketing and technical assistance plan.
• Appropriate monitoring of its investments.
• A technical assistance program to assist the businesses in which it invests.
• A process for complying with proposed measurement and goals.

MAINE NEW MARKETS CAPITAL INVESTMENT PROGRAM: Provides refundable state tax credits of up to 39 percent to investors in qualified community development entities (CDEs) that reinvest in certain businesses in eligible low-income communities in Maine. The program is modeled after the federal New Markets Tax Credit Program, and is administered by the Finance Authority of Maine, in cooperation with Maine Revenue Services and the Maine Department of Economic and Community Development.

In order to be eligible to participate in the program, a CDE must be certified as a qualified community development by the Secretary of the United States Treasury, and be a party to an existing allocation agreement with the Department of Treasury’s CDFI Fund that is in effect and not subject to revocation or cancellation. The allocation agreement must have Maine in its service area.

AGRICULTURAL MARKETING LOAN FUND: Provides low interest financing to help eligible businesses employ new and innovative technologies and processes in order to improve, expand and enhance the manufacturing, marketability and production of Maine-made agricultural products. Funds may be used for the design, construction or improvement of facilities such as commodity storage buildings and packing and marketing facilities. Funds may also be used to purchase or retrofit machinery and equipment. Depending on the type of project, the loan amount is up to 90 percent of total project cost, if project cost is $100,000 or less; up to 75 percent of total project cost, if project cost is more than $100,000; and up to 45 percent of total project cost, if project is related to the production of potatoes. Maximum loan amount is $250,000, and acquisition costs for start-up enterprises is limited to $100,000.

ENERGY CONSERVATION LOAN PROGRAM: Funded through the Maine Public Utilities Commission (PUC), it provides low-interest loans to improve energy efficiency in Maine workplaces. Loan amount is 90 percent of project cost, up to a maximum loan amount of $35,000 and the interest rate is 1 percent, fixed for the term of the loan. Loan term is usually 5 years. Longer terms may be negotiated depending on the useful life of the assets being financed or additional collateral pledged.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG): Provides funding and technical support for community projects that meet economic development objectives and lead to job creation or retention for Maine residents with low to moderate incomes.

TAX INCREMENT FINANCING (TIF): Provides municipalities with a local tool to finance the cost of private development. Maine municipalities may redirect some or all of the new property taxes from an investment project within a designated district to assist in that project’s financing. Municipalities have three disbursement options for the tax increment:

• Give directly to the investing business to pay project costs.
• Use to retire bonds issued as part of the project.
• Retain for allowable economic development.

TIF districts may be designated for up to 30 years. Bonds may be issued for up to 20 years. Financing terms are determined by the municipality. Community designation of a TIF district requires proper public notice, a public hearing, and a majority vote of the municipal legislative body.

SMALL ENTERPRISE GROWTH FUND (SEGF): Provides initial investments, typically between $150,000 and $350,000, in patient capital to small businesses that demonstrate a potential for high growth and public benefit. Funds must be matched in cash. Investments from the fund may be structured as convertible debentures or direct purchases of preferred stock.

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MA Statewide Economic Development Agencies

MA Utilities

MA Regional Economic Development Agencies

MA County Economic Development Agencies

MA City Economic Development Agencies

Massachusetts State Incentives

ECONOMIC DEVELOPMENT INCENTIVE PROGRAM (EDIP): Participating companies may receive state and local tax incentives in exchange for job creation, manufacturing job retention and private investment commitments. It offers incentives in several ways:

• In municipalities that are Economic Target Areas, expansions can be assisted with locally‐approved TIF agreements which are exemptions on the value added to a property in the expansion and a state‐approved 3‐5 percent Investment Tax Credit,
• For projects that result in 100 or more new jobs (Enhanced Expansion Projects), companies can be approved by the state for the Investment Tax Credits of up to 10 percent, without the need for any local approvals,
• For projects in select “Gateway Communities” that create 100+ jobs, companies can pursue both a local TIF agreement and state‐approved Investment Tax Credits of up to 10 percent. Manufacturing Retention projects can receive up to a 40 percent.

INVESTMENT TAX CREDIT (ITC): Offers a 3 percent credit for qualifying businesses against their Massachusetts corporate excise tax. The credit is to be used for the purchase and lease of qualified tangible property used in the course of doing business. The ITC can reduce the cost of expansion, includes a carry forward provision and is considered a permanent incentive.

R&D TAX CREDIT: A tax incentive for research and development investment for both manufacturers and R&D companies. It was designed to remove any obstacles to R&D investment and spur growth and innovation throughout the Commonwealth. The R&D tax credit closely resembles the federal credit program, however, it specifically offers qualifying Massachusetts companies many unique features for doing business in Massachusetts. It is available to any foreign or domestic corporation subject to the corporate excise under Chapter 63 Massachusetts Law

SINGLE SALES FACTOR: Tax apportionment that significantly reduces the tax burden for manufacturers and other qualifying companies and may apply to the following types of companies that have multi-state tax filings:

• Manufacturing companies
• Qualifying defense contractors
• Qualifying financial service providers

TAX INCREMENT FINANCING: Allows municipalities to provide flexible targeted incentives to stimulate job-creating development

• Negotiated Agreement between business and host municipality;
• 5 year minimum, 20 year maximum or anything in between;
• Business pays full tax rate on the “base value”;
• Exemption from property taxation on all or part of the increased value accrued as a result of development
• Percentage of exemption may range from 5% to 100%;
• Personal property tax exemption for both existing and new property;
• M.G.L. 40 § 59 governs all TIF Agreements.

BROWNFIELDS REDEVELOPMENT FUND: Created in 1998 to encourage the reuse of Brownfields in Economically Distressed Areas (EDAs) throughout MA. Brownfields are vacant, abandoned or underutilized industrial or commercial properties where expansion, redevelopment or improvement is complicated by real or perceived environmental contamination and liability. MassDevelopment administers the Brownfields Redevelopment Fund programs.

• The Brownfields Site Assessment Program – Provides unsecured, interest free financing up to $100,000 for environmental assessment of Brownfields.
• The Brownfields Remediation Loan Program – Provides flexible loans up to $500,000 for environmental clean-up of Brownfields.

WORKFORCE TRAINING FUND (WTF): Provides grants up to $100,000 to upgrade skills of new or incumbent workers. The Hiring Incentive Training Grant provides up to $2,000 in training funds for hiring eligible unemployed workers.

GREEN LOAN PROGRAM: Bridges the gap between energy efficiency project costs and the rebates or subsidies provided by utility companies and state/federal incentive programs. To be eligible, an organization must be a non-profit or for-profit business in Massachusetts that has been in existence for at least five years and demonstrates an ability to repay the loan.

Loans are available in the amounts of $50,000 to $500,000 and are net of project-related rebates or subsidies.

Loans may only be made for projects that receive approval for a utility rebate under a public utility sponsored energy efficient program authorized by the Massachusetts Department of Public Utilities or approval for a subsidy from a state/federal energy efficiency incentive. Funds may be used for:

• HVAC replacements or improvements
• Windows, insulation, and other building improvements
• Lighting
• Energy control systems
• Chillers and Boilers
• Hot water heaters
• Photovoltaic panels

EMERGING TECHNOLOGY FUND (ETF): Targets technology companies that are starting up or expanding manufacturing in Massachusetts by providing financing for manufacturing facilities and equipment. It offers loans or loan participations up to $2,500,000 and loan guarantees up to $1,000,000. Companies that receive ETF financing must have strong management teams, demonstrated technical feasibility, market demand for their products and a proven fundraising record. To qualify for ETF financing:

• Borrower must be a technology company starting or expanding manufacturing operations in Massachusetts
• Financing must be for the purchase, expansion or improvement of real estate, and/or the purchase of equipment
• There must be at least two other parties at risk
• Financial investment must benefit the Massachusetts economy

COMMUNITY SERVICE 501(C)(3) LOAN FUND: Flexible financing for capital improvements for community-based nonprofit organizations such as elder care centers, daycare facilities, community centers and girls’ and boys’ clubs. The fund will provide loans ranging from $100,000 up to $500,000. Eligible applicants must be registered as a Massachusetts-based 501(c)(3) organization; have an operating budget of less than $5 million for each of the last five years; provide social, youth or family services; primarily work in underserved or disadvantaged communities; and, be ineligible for financing under existing loan programs.

MA CULTURAL FACILITIES FUND (CFF): An initiative of the Commonwealth to increase public and private investment in cultural facilities throughout the state. The Program is administered jointly with the Massachusetts Cultural Council and three types of grant programs are available:

1. Capital Grants for expenses related to acquisition, design, construction, repair, renovation and rehabilitation of other capital improvements or deferred maintenance of a cultural facility
2. Feasibility and Technical Assistance Grants for expenses related to planning and feasibility assessment for a cultural facility
3. Systems Replacement Grants for expenses to undertake the production of 20-year capital needs assessments of their buildings and mechanical systems

All Fund grants must be matched by contributions from the private or public sector and are available to:

• Nonprofit 501(c) 3 organizations primarily engaged in the arts, humanities or interpretive sciences. Eligible facilities include, but are not limited to, museums, historic sites, zoos, aquariums, theaters, concert halls, exhibition spaces, classrooms and auditoriums, and must be owned, leased or used by one or more nonprofit cultural organizations and accessible to the public
• Public/private institutions of higher education that own cultural facilities providing service and open access to the community and the general public beyond their educational mission and demonstrate financial need
• Municipalities that own cultural facilities provided that the cultural facility is at least 50,000 square feet, and 50 percent devoted to cultural purposes

SMALL FARM LOAN PROGRAM: To help small farmers in Massachusetts finance projects that improve their operations and increase their income, MassDevelopment, The Strolling of the Heifers, Inc. and The Carrot Project have teamed together to offer a small farm loan program that provides loans ranging from $3,000 to $35,000. Eligible farmers will own or lease farms in Massachusetts.

TECH DOLLARS: MassDevelopment offers a special loan program to help non-profit 501(c) 3 organizations purchase and install technology equipment. TechDollars provides loans from $25,000 to $250,000 and 100 percent of cost of purchase of new or used telecommunications and IT equipment and installation costs

To be eligible, the borrower must be a Massachusetts 501(c) 3 organization and equipment purchased must be installed in facilities located in the state.

LIFE SCIENCE INCENTIVES

• COOPERATIVE RESEARCH GRANT: Supports industry‐sponsored research at universities and facilitates scientific discoveries that lead to medical applications with grants of $250,000 per year for up to three years, in a 1:1 match with its industry partner.

• NEW FACULTY STARTUP GRANT: Targets investments to attract and retain nationally prominent faculty at Massachusetts’ colleges and universities with grants of $250,000 per year for up to three years, in a 1:1 match with the academic institution.

• NEW INVESTIGATOR GRANT: Spurring innovative new research and advancing the careers of new investigators who are working on cutting‐edge research at Massachusetts academic research centers with grants of $100,000 per year for up to three years.

• LIFE SCIENCES ACCELERATOR: Financing, up to $750,000, for early‐stage companies to help leverage additional sources of capital.

• SMALL BUSINESS MATCHING GRANT (SMBG) - Provides “matching” support—capped at $500,000 per company—to Phase II or Post Phase II SBIR or STTR grants already received by applicant companies.

• LIFE SCIENCES TAX INCENTIVE PROGRAM: Companies that are growing jobs, investments and revenue are prospects for the nine distinct tax incentives of the LSI. To receive benefits, companies must apply to the MLSC to become a Certified Life Science Company. The incentives include:

o Refundable 10% Investment Tax Credit
o Refundable FDA User fee Credit
o Refundable Research Tax Credit
o Elimination of Sales Factor Throwback
o Deduction for Orphan Drug Clinical Testing
o Special Sales Tax Exemption
o Life Sciences Research Credit
o Construction Sales Tax Exemption

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RI Statewide Economic Development Agencies

RI Utilities

RI Regional Economic Development Agencies

RI County Economic Development Agencies

RI City Economic Development Agencies

Rhode Island State Incentives

The JOBS GROWTH ACT allows eligible businesses in any industry to offer their employees an exclusion of 50 percent of performance-based compensation from their Rhode Island gross income. In return, the company pays a 5 percent tax each year on the performance-based income paid that year. In order to qualify, a company must hire 100 new employees in the state and add at least $10 million to its state payroll. Those new workers must earn at least 125 percent o the state’s annual average compensation. Employees must be hired or relocated after June 1, 2005 and cannot have been previously employed by the company. The tax cut applies only to bonus or incentive income, not base salary.

A 22.5 percent RESEARCH & DEVELOPMENT TAX CREDIT is allowed for increases in qualified research expenses—the highest rate in America. If the increase above base period expenditures exceeds $111,111, the credit equals 16.9 percent of the excess. The credit is available against a corporations business tax. Unused credit may be carried forward for up to seven years. A taxpayer is allowed 10 percent tax credit for expenditures paid or incurred during the taxable year for the construction, reconstruction, erection, or acquisition of any property that is used or to be used for the purpose of research and development in the experimental or laboratory sense. The property must be depreciable and have a useful life of three years or more. The credit is available against a corporations business tax. Unused credit may be carried forward for up to seven years.

The JOB TRAINING TAX CREDIT grants a credit against the corporate income tax (or the insurance premium tax in the case of insurance companies) equal to 50 percent of the actual training spending, whether for new or existing employees, by companies in accordance with an approved training plan. Plans must be filed with the Rhode Island Human Resources Investment Council for approval prior to the training. The credit allowed is capped at $5,000 for each employee in any three-year period.

JOB TRAINING GRANTS: Rhode Island offers a unique Human Resources Investment Council training program for business and industry funded through a job development assessment of 0.15 percent on the firm’s taxable payroll to $18,200 per employee. This pool of money is available for industry to create customized training programs tailored specifically for a company and free from restrictions imposed by federally funded programs.

Created in 2010, the JOB CREATION GUARANTY PROGRAM authorizes the RIEDC to support critical economic development projects by helping innovative small businesses gain access to private growth capital and credit. The program helps companies with primarily “soft” assets like patents, intellectual properties and licenses expand and create jobs in Rhode Island. Under the program, the RIEDC may provide credit enhancement on bonds or loans privately placed with capital providers and banks. The net proceeds of the bonds would provide the necessary financing to capitalize a company’s growth and expansion in Rhode Island. The state would use its “moral obligation” authority to guarantee debt service payments to the bondholders or lenders.

INDUSTRIAL REVENUE BONDS may be used to finance qualified commercial and industrial projects. The bonds offer a competitive interest rate and state sales tax exemption on building materials, which may be significant for projects involving new construction. Financing is available through the Rhode Island Industrial Facilities Corporation and covers the entire project cost. The project and the credit of the user provide the security for the bonds, which may be issued on the financial strength of the user when the user is appropriately rated. The bonds may also be issued with an enhancement letter of credit from a financial institution.

TAX-EXEMPT “SMALL ISSUE BONDS”: interest on certain bonds with face amounts of less than $10 million is excluded from income if at least 95 percent of the bonds proceeds is used to finance manufacturing facilities. Industrial revenue bonds are tax-exempt obligations of the issuer, the interest on which is exempt from federal and state income tax. The interest rate on such obligations is normally below that available for conventional mortgages.

The SMALL BUSINESS LOAN FUND (SBLF) provides partial funding for expansion projects that will benefit Rhode Island’s economy by encouraging business development. The program makes loans available with attractive terms for nonspeculative ventures involving the following types of capital investment: acquiring land; purchasing machinery or equipment; constructing new buildings and facilities; providing working capital.

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VT Statewide Economic Development Agencies

VT Utilities

VT Regional Economic Development Agencies

VT County Economic Development Agencies

VT City Economic Development Agencies

Vermont State Incentives

The VERMONT EMPLOYMENT GROWTH INCENTIVE (VEGI) program can provide a cash payment, based on new job and payroll creation, to companies that have been authorized to earn the incentive. The incentive amount is based on the economic and fiscal impact of qualifying new jobs and payroll and capital investments made by the applicant for a period of up to five years. The resulting net revenue impact is used to calculate a percentage, which is then applied against the qualifying new payroll of the net new qualifying jobs, the product of which is the incentive amount for that year.

The VERMONT TRAINING PROGRAM (VTP) promotes expansion and encourages the creation and retention of jobs in Manufacturing, Information Technology, Healthcare, Telecommunication and Environmental Engineering by providing training funds for new and existing businesses thereby increasing the skills of the Vermont workforce, the wages and Vermonters’ standard of living. To be eligible, the company must guarantee that the training requested will supplement, rather than replace, the company’s ongoing, normal training efforts and agree to pay wages equal to at least twice minimum wage ($16.30) at completion of training, if no benefits are provided to the employee.

The DIRECT LOAN PROGRAM is eligible to manufacturing, processing, warehousing, research and development, travel and tourism, information technology, and others as defined in statute. Money can be used for the purchase of land, construction of buildings, purchase and installation of machinery and equipment.

TAX-EXEMPT REVENUE BONDS: Eligible to facilities deemed eligible by the IRS (primarily manufacturers) as 501(c)3 organizations. Bonds can be used for acquisition of land, buildings, and equipment or “exempt facilities” as defined in the federal tax code.

VERMONT JOB START PROGRAM: Applicants must meet income eligibility criteria. Funds may be used to purchase real estate, equipment, inventory or for working capital.

LOCAL DEVELOPMENT CORPORATION LOANS: This program provides financing to nonprofit local and regional development corporations to build facilities for lease to identified eligible tenants, or to plan and/or develop industrial parks. All nonprofit local and regional development corporations (LDCs and RDCs) are eligible for the program. Funding can be used for the purchase of land for industrial parks; industrial park planning and development; construction or improvement of speculative buildings; and small business incubator facilities.

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