2023 -- H 5809

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LC001938

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO TAXATION -- SUPPLY CHAIN RELOCATION

     Introduced By: Representatives P. Morgan, Fenton-Fung, Roberts, Rea, Nardone,
Kennedy, Casey, Shanley, Baginski, and Costantino

     Date Introduced: February 22, 2023

     Referred To: House Finance

     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 71

SUPPLY CHAIN RELOCATION

     44-71-1. Supply chain relocation.

     Every entity that relocates any part of the United States supply chain that currently is

located in another country to Rhode Island shall be eligible to receive:

     (1) Ten (10) years of zero percent (0%) property tax payments. Manufacturing entities shall

receive an additional ten (10) years in which the property tax increases by ten percent (10%) every

year until it reached one hundred percent (100%) in the tenth year of production. The state shall

reimburse the municipality.

     (2) A one hundred percent (100%) tax credit for the cost of placing solar arrays or

hydroelectric turbines at its facility.

     (3) A fifty percent (50%) credit for all materials and labor used to increase the energy

conservation efficiency of the physical plant.

     (4) A tax credit equal to fifty percent (50%) of the state income tax owed by the entity for

fifteen (15) years commencing in the first year the entity begins production.

     (5) A tax credit for all sales taxes on construction materials used in the initial construction

or renovation of the facility.

     (6) For the first fifteen (15) years of production, the entity shall receive:

     (i) A tax credit equal to seventy-five percent (75%) of the cost of employee training. This

tax credit applies to in-house training. The entity’s employees shall also be eligible for free tuition

at any Rhode Island state college for instruction required to improve job performance. The entity

shall attest to the value and necessity of the college instruction to its operations for the employee

to be eligible.

     (ii) A tax credit equal to fifty percent (50%) of the cost for technology or equipment used

to reduce the waste stream or combat pollution.

     (7) For re-shoring manufacturing production lines to Rhode Island, the entity shall receive:

     (i) One hundred percent (100%) expensing of equipment costs needed for re-shoring.

     (ii) A tax credit for all sales taxes on materials, labor and permits for the initial construction

or renovation of the facility, to accommodate the re-shoring.

     (iii) An investment tax credit equal to twenty-five percent (25%) of the cost of equipment

for re-shoring.

     (iv) Aid from low interest grants for re-shoring.

     (v) Aid from the innovation voucher program for equipment acquisition for re-shoring.

     (vi) Internal and external training of employees through the Real Jobs Rhode Island

program.

     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 -- SUPPLY CHAIN RELOCATION

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     This act would provide tax credits to an entity that relocates any part of the United States

supply chain currently in another country to Rhode Island. This act would also provide tax credits

and incentives to an entity that re-shores manufacturing production lines to Rhode Island relating

to its costs and expenses.

     This act would take effect upon passage.

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