Thinking about growing your business in Providence? Lucky for you, we are home to two Enterprise Zones, giving you even more incentive to grow here.

Zone Benefits

The Rhode Island Enterprise Zone Program provides tax incentives to businesses that expand their workforce in certain areas of the state, including two areas of Providence.

• Rhode Island Enterprise Zone Tax Credit

  Tax credit equal to 50% of the annual wages paid to new employees to a maximum of $2,500 per employee. If new employees reside in an Enterprise Zone, then the tax credit is equal to 75% of the annual wages paid to those employees to a maximum credit of $5,000 per employee.

• Alternative for Resident Business Owners: Reduction in Federal Adjusted Gross Income Tax

  Business owners who live in the same Enterprise Zone in which their business is located may opt to take the Enterprise Zone Resident Business Owner Modification instead of the Enterprise Zone Business Tax Credit. The 5-year reduction provides resident business owners a 3-year, $50,000 modification of their federal adjusted gross income tax liability. During the 4th and 5th years, the modification decreases to $25,000.

Eligibility

Any Providence business located in an Enterprise Zones that grows its employee base by 5% with full-time Rhode Island residents may be eligible for the Rhode Island Enterprise Zone Business Tax Credit (or the Reduction in Federal Adjusted Gross Income Tax.) To be eligible:

• The business establishment must be located in a designated Enterprise Zone.
• The new employee(s) must be:
  • Hired during the application year
  • Resident(s) of Rhode Island
  • Employed full time (30 hours per week or more)
  • Employed on December 31st of the application year
• The new employee must begin and end each work day in the Zone
• The establishment must meet the 5% growth requirement

Get in the Zone

To apply for admission to the Rhode Island Enterprise Zone Program, download and complete the Rhode Island Enterprise Zone Application Form for Admission and submit it to:

Kathy A. Cosentino
Providence Enterprise Zone Coordinator
Providence Economic Development Partnership
400 Westminster Street-6th Floor
Providence, RI 02903

When we receive your application, we will verify that your business is located in one of the two designated Enterprise Zones and forward your application to the Rhode Island Economic Development Corporation. Your application will then be subject to the approval of the Rhode Island Enterprise Zone Council.

For more information on the approval and annual certification process, please visit the Rhode Island Enterprise Zone website