A bill scheduled to be introduced Thursday would use tax credits to try to spark the creation of jobs.
State Representative Joseph Shekarchi (D-Warwick) is introducing his job development tax credit bill for the third time. He said it’s modeled on a program that incentivizes larger employers to create jobs by lowering their taxes.
“The way the bill mechanically works is for every new job you create that’s above a certain wage; they get a slight reduction on their corporate income tax. Obviously, the more jobs they hire, the lower the tax goes, but there is a floor,” said Shekarchi. He said his bill targets the creation of jobs paying roughly $40,000 to $50,000 a year.
Shekarchi expects the $7 million annual cost of implementing the incentive program to be close to neutral. “My belief is that this cost, the $7 million cost, will drop dramatically, when you factor in the amount of taxes that are going to be paid by these new jobs that are being created.
House Speaker Nicholas Mattiello has indicated the bill is one of his priorities in the current legislative session.
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