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Alpha-Mail                                               logo web sm 12mb
 A Tax Professional's Guide to Credits and Incentives, Courtesy of Alpharesults
 Vol. X No. 1 January 2016
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In this issue
2016 Annual Job Tax Credit Rankings
Spotlight on Rhode Island Credits and Incentives

Hello!

Welcome to Alpha-Mail, the monthly newsletter about tax credits and incentives for tax professionals.

This month, learn about the changes in Georgia's Job Tax Credit tier rankings and zone designations.   Also, some of you may have clients who own businesses in Rhode Island, so be sure to see our overview of Rhode Island credits and incentives. We hope you can use this information to strengthen your client relationships! 
 
Thank you for reading Alpha-Mail -- please click reply to tell us what you think.
 
All the best, 
Dale&JimSigsSM1     
 Dale Stapler    Jim Tinsley
     Alpharesults, LLC 
 
 
 

2016 Annual Job Tax Credit Rankings                         
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The 2016 Job Tax Credit ranking details have been released by the Georgia Department of Community Affairs (click here). Several things to keep in mind for your clients:
  • The ranking changes apply to Job Tax Credits and Investment Tax Credits.
  • Changes may adversely impact your clients' Job Tax Credits based on their County Tier, overall ranking (Bottom 40), Less Developed Census Tract, or Military Zone.
  • No impact on Opportunity Zone tax credits.
  • A Notice Of Intent For Georgia Jobs Tax Credit can be filed to maintain your client's tier, ranking, Military Zone, or Less Developed Census Tract designation for 3 years - the form must be filed by Feb. 15, 2016 (click here).
So make sure to review your clients' plans for 2016. Job Tax Credits may be available if they plan to increase employment levels, open new or change locations in Georgia, or buy another company. 

 
JimSig  

Rhode Island Credits and Incentives            
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As we've mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
 
We were recently asked about credits and incentives in Rhode Island, and their state economic development professionals gave us some details (CommerceRI site click here).
 
Rhode Island offers a meager collection of credits and incentives for new and existing businesses.  CNBC ranked Rhode Island #48 in their 2015 America's Top States for Business survey (Georgia was #5 in the same survey).    
 
Incentives and Credits include:  

Qualified Jobs Incentive Tax Credit -- Companies expanding their workforce in Rhode Island or relocating jobs from out of state can receive annual, redeemable tax credits for up to 10 years with the Qualified Jobs Incentive program. Credits can equal up to $7,500 per job per year, depending on the wage level and other criteria. The minimum number of new jobs needed to qualify varies by industry and company size, but can be as few as 20, or even 10, jobs. The first 500 jobs approved under the program will receive the maximum credit available.  Pre-approval required, of course, and caps apply.

Rebuild Rhode Island Tax Credit -- Covers project financing gaps with redeemable tax credits covering up to 20-30% of project costs. Commercial office, industrial, residential, mixed use development, ground-up construction and historic rehab can qualify. A minimum project cost of $5 million and certain square footage/project size minimums may apply. Approved projects can also be exempted from sales tax on construction materials, furnishings and equipment.

Industry Cluster Grants -- Encourages companies in an industry sector to work together to solve problems, exchange ideas and develop talent. Grants of $75,000 to $250,000 are available to fund planning and organization building for the cluster; grants of $100,000 to $500,000 are available to implement programs that strengthen the cluster in areas like R&D, tech transfer, workforce development, or marketing.  Sounds like another government cluster program!

Others: Anchor Institution Tax Credit, a referral program; I-195 Redevelopment Fund, a fix-up Providence fund; Innovation Vouchers, a local medical R&D fund; other assorted grant programs.
 
Compared to Georgia, Rhode Island has:
  • Higher corporate and comparable personal income tax rates.
  • Higher combined state and local tax burden
  • A far narrower range of incentives.
  • Pre-approval required for all incentives
To summarize, Rhode Island is below average for business tax incentives, but at least not many people would notice! 
 
 
DaleSig
   
 

About Us
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Alpharesults has assembled a team with the specialized knowledge and approach required to obtain Georgia income tax credits.  We are not a public accounting firm.  Rather, our services complement those of public accounting firms and do not create conflicted loyalties, because our professionals do not perform attestation work or other external audit functions.  

We focus on small to medium-sized businesses and work exclusively in Georgia with a wide variety of in-state and out-of-state accounting firms.  For more information on our services, follow this link. 

 
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Contact Information
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email:  alpha-mail@alpharesults.com                   phone: 770-667-1332
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