AN ACT RELATING TO TAXATION -- RHODE ISLAND NEW QUALIFIED JOBS INCENTIVE ACT 2015

2026 Regular Session Introduced by Jonathon Acosta and 9 co-sponsors

The bill sunsets the New Qualified Jobs Incentive Act by prohibiting new rate reductions after June 30, 2026 and preserves pre-2015 benefits only.

04/29/2026 Committee recommended measure be held for further study

Purpose and intent

SB 2624 proposes to sunset the Rhode Island New Qualified Jobs Incentive Act (the Jobs Development Act) by discontinuing rate reductions (tax credits) under the act, with a firm sunset date of July 1, 2026. The bill also clarifies treatment for companies that qualified before July 1, 2015, ensuring they may maintain their previously granted rate reductions but that no new reductions can be granted after the sunset.

Key provisions

Discontinuance of rate reductions (general sunset)

The rate reductions provided under the Jobs Development Act (chapter 64.5 of title 42) are to be discontinued effective July 1, 2015, but this is superseded by the sunset in subsection (b): all rate reductions will discontinue no later than July 1, 2026.
Practical effect: Starting after the sunset date, no new credits or rate reductions governed by this act would be available.

Protection for pre-existing beneficiaries (grandfathering)

Any company that qualified for a rate reduction under chapter 64.5 before July 1, 2015 may retain the rate reduction in effect as of June 30, 2015.
No additional rate reductions may be granted to new or existing beneficiaries beyond what was already in place as of June 30, 2015.
All obligations of those companies to retain a rate reduction under chapter 64.5 remain in full force and effect.

Sunset timing

Adds a new section (42-64.5-9) establishing that no credits can be reserved under this chapter after June 30, 2026.

Effective date

The act takes effect upon passage.

Who/what is affected

Businesses and employers that would be eligible for Rhode Island New Qualified Jobs Incentive Act incentives (rate reductions/credits) under Chapter 64.5 of Title 42.

Existing beneficiaries that qualified before July 1, 2015 may continue to receive their rate reductions as of June 30, 2015, but no new expansions or new beneficiaries would be allowed after the sunset.

State fiscal policy and administration responsible for administering the Jobs Development Act and tracking credits/obligations.

Procedural and timeline aspects

Introduced: February 13, 2026.

Committee: Senate Labor & Gaming.

The committee recommended holding the measure for further study (April 29, 2026).

The act would become law upon passage.

Sunset date for credits: No credits may be reserved after June 30, 2026; all existing/ongoing credits would terminate no later than that date, subject to any grandfathered pre-2015 arrangements.

Notes on impact

The bill effectively ends new incentives under the Jobs Development Act after mid-2026 and terminates the program’s ability to grant new rate reductions beyond those already in effect as of June 30, 2015.

For pre-2015 beneficiaries, the act preserves existing rate reductions but bars new enhancements or expansions.

Overall, this is a policy shift away from the New Qualified Jobs Incentive framework and toward wind-down by 2026.

Bill