2021 -- S 0137

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO TAXATION -- TAX CREDIT FOR WAGE PAYMENTS

     Introduced By: Senators Raptakis, Lombardi, Paolino, Lombardo, and Ciccone

     Date Introduced: January 26, 2021

     Referred To: Senate Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

adding thereto the following chapter:

CHAPTER 70

TAX CREDIT FOR WAGE PAYMENTS

     44-70-1. Tax credit for payment of wages.

     In order to assist employers in maintaining employees on their payroll, and businesses

which employ and retain employees in the state of Rhode Island, there is established a tax credit

for payment of wages at or in excess of minimum wage requirements at or exceeding eleven dollars

and fifty cents ($11.50) per hour. This credit is in addition to all other deductions and credits

authorized by law.

     44-70-2. Application and calculation of credit.

     A business whose employees are compensated on an hourly basis shall be entitled to claim

the following tax credit under the following circumstances:

     (1) On the effective date that an employer shall pay his or her employees a minimum wage

of eleven dollars and fifty cents ($11.50) per hour pursuant to the provisions of §28-12-3, a tax

credit of one dollar is authorized for each hour of wages paid.

     (2) On the effective date that an employer shall pay his or her employees a minimum wage

of thirteen dollars ($13.00) per hour pursuant to the provisions of §28-12-3, a tax credit of two

dollars ($2.00) is authorized for each hour of wages paid.

     (3) On the effective date that an employer shall pay his or her employees a minimum wage

of fourteen dollars ($14.00) or more per hour pursuant to the provisions of §28-12-3, a tax credit

of three dollars ($3.00) is authorized for each hour of wages paid.

     44-70-3. Rules and regulations.

     The tax administrator shall promulgate rules and regulations for the implementation of the

provisions of this chapter.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- TAX CREDIT FOR WAGE PAYMENTS

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     This act would provide tax credits for businesses as minimum wage bench marks are

reached or adopted in the future. The benchmarks are as follows:

Eleven dollars and fifty cents ($11.50) - tax credit of one dollar ($1.00) per hour of

wages paid.

Thirteen dollars ($13.00) – tax credit of two dollars ($2.00) per hour of wages paid.

Fourteen dollars ($14.00) – tax credit of three dollars ($3.00) per hour of wages paid.

     This act would take effect upon passage.

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