Rep. Shekarchi’s Qualified Jobs Incentive Act brings GE jobs to RI
STATE HOUSE – Rep. K. Joseph Shekarchi’s Qualified Jobs Incentive Act is delivering results for the Rhode Island economy with the recent announcement by General Electric (GE) that the company will bring 100 high-paying tech jobs to Rhode Island and plans to bring hundreds more in the coming years, bringing the total number of approved jobs through the act to 218 jobs so far.
Last year, Representative Shekarchi (D-Dist. 23, Warwick) introduced the Rhode Island New Qualified Jobs Incentive Act to make tax incentives available to companies that hire new “qualified” full-time employees who work a minimum of 30 hours per week, with a salary that is at least 250 percent of the state’s hourly minimum wage. The legislation ended up being rolled into the state budget.
“My number one priority since coming to the State House has been to get my fellow Rhode Islanders back to work. Today, I’m proud to say that this program has delivered the results Rhode Islanders deserve with the announcement of the GE jobs coming to our state,” said Representative Shekarchi. “I’d like to thank my colleagues in the General Assembly and Governor Raimondo for supporting this program and making it a reality for the struggling workers and businesses across this state. The Great Recession hit us harder than most, but, with programs like this, and companies like GE investing in our state, I am confident that the Rhode Island economy will bounce back, stronger than ever,” added Representative Shekarchi.
As states continue to compete with each other to attract businesses, Rhode Island came up with an incentive package that will encourage businesses to make a long-term investment in the state, rather than one that would encourage companies to leave once the incentives run out.
With the jobs incentive plan, large companies are eligible for a .25 percent tax incentive off their net income tax rate for every 50 new hires while smaller companies, which are typically partnerships or family businesses, receive a .25 percent incentive off their personal income tax for every 10 new hires, provided that the rate reduction is no larger than 6 percentage points for the applicable business income tax rate and no larger than 3 percentage points for the applicable personal income tax rate.
The Providence-based unit of GE, which intends to apply for incentives under this act, will employ a range of professionals, including experienced engineers, data scientists and young professionals with a background in data, design and information technology.
The Qualified Jobs Incentive Act has already approved 118 new planned jobs for companies that have applied to the program including 35 jobs for A.T. Cross, Ivory Ella is planning on adding 30 new jobs, Trade Area Systems is planning on adding 28 new jobs, and Greystone plans to add 25 new jobs through the program.