This report conducted by the Chief of the Office of Revenue Analysis was required to be completed by Rhode Island law so as to analyze the effects of the Department of Revenue’s economic development tax incentives. In particular, this assessment looked at the Jobs Development Act that provides for a reduction in the Business Corporation Tax, the Taxation of Banks, the Taxation of Insurance Companies, and the Public Service Corporation Tax. The tax benefit is equal to a tax rate reduction for each new unit of employment that is added to a company’s previously established base employment. Analysts used a 70-sector REMI PI+ model to quantify the costs and benefits associated with proposed tax changes and to produce estimates of the total economic effects of the tax credits issued in tax years 2013 and 2015.
