Thinking About Driving Growth in RI Through Innovation

CBRE/New England hosted their annual Real Estate Market Outlook. Good news on the real estate front: the office market is rebounding. Rents have increased across all classes. Class A rents in downtown Providence are $31.05/sf and there is an 11.1%vacancy rate. In the industrial market, vacancies are down to the lowest recorded level in 15 years at 4.3% and 1.9 million square feet of space has been absorbed.

Samantha Joseph, Global Expansion Lead at the Cambridge Innovation Center and Doug Levin of Tech CXO were the guest panelists. CIC began 15 years ago around the concept of offering shared office and lab space for entrepreneurs. The concept has grown to other communities in the U.S. including St. Louis. Demand for talent is the number one issue facing entrepreneurs. The CIC in St. Louis is helping to reverse the brain drain in that community.

Providence has many of the key attributes to success: the presence of university and medical institutions; 195 real estate opportunities; government commitment and availability of funding; and mixed-use space. It was noted that Providence has to embrace entrepreneurs!

Thinking About Providence as a Top Start-Up Market

“Providence has been ranked as a top market to found a company outside of Silicon Valley and New York — and leaders in the Rhode Island startup industry are saying that the coming year could present significant opportunities in the market.

Based on criteria of affordability, availability of capital, success of early-state companies, and a community of entrepreneurs, new research company DataFox placed Providence in its fifteenth – and final — spot on its “2015’s Best City to Found a Startup” list.” – GoLocalProv.com, 12/18/15  

“Cities with a strong entrepreneurial climate often have deep ties between startups and universities or the local government,” said Anisha Sekar, lead researcher on the study. “Providence has both. In addition to state programs like Wave Makers that foster entrepreneurship, as the state capital, it provides startups with close access to the public sector; while Brown, RISD and other universities have made the city into a hub for design and social entrepreneurship.”

“Certain cities have a way of creating a thriving startup ecosystem with access to capital, affordability for pre-funded companies, and other founders who can motivate and mentor new entrepreneurs. A startup’s location can have a major impact on its success, from getting face-to-face meetings with potential investors to affording rent long enough to get some traction. And while San Francisco, New York and Palo Alto dominate the startup news, other cities have created a thriving startup scene in areas like healthcare technology, design and agriculture.” – DataFox, 12/14/18  

Thinking About Sparking the Innovation Economy in RI

Governor Gina M. Raimondo, with Secretary of Commerce Stefan Pryor, recently launched three new innovation-focused incentive programs aimed at jumpstarting Rhode Island’s economy.

“We are pursuing an ambitious economic strategy that will put Rhode Island back in the game. With these new tools, we are joining a select group of pioneering states offering these creative options to businesses. Encouraging collaboration across our research institutions, enterprising companies, and state government will make sure we are moving ahead at full speed,” said Governor Raimondo.

Applications are now available online.

Innovation Vouchers

The Innovation Voucher program lets businesses unlock R&D capacity. Rhode Island companies with fewer than 500 employees can receive grants of up to $50,000 to fund R&D assistance from a Rhode Island university, research center or medical center.
Apply today >

Innovation Network Matching Grants

Innovation Network Matching Grants offer technical assistance, space on flexible terms, and/or access to capital to Rhode Island small businesses in key industries (e.g. life sciences, health care, food and agriculture, clean technology, energy efficiency, cyber security, and others as designated).
Apply today >

Industry Cluster Grants

Industry Cluster Grants encourage companies in an industry sector to work together to solve problems, exchange ideas and develop talent. Grants of $75,000 to $250,000 are available to fund planning and organization building for the cluster; and grants of $100,000 to $500,000 are available to implement programs that strengthen the cluster in areas like R&D, tech transfer, workforce development, or marketing.
Apply today >

Potential applicants for any of the new incentives are encouraged to contact the Commerce Corporation’s Innovation team at (401) 278-9100 or innovation@commerceri.com

Thinking About New Programs to Grow & Attract Business

Governor Gina M. Raimondo, along with Speaker Nicholas Mattiello and Senate President Teresa Paiva Weed, have launched new incentive programs aimed at spurring economic growth across Rhode Island. Applications for the Qualified Jobs Incentive Tax Credit and The Rebuild Rhode Island Tax Credit are now available online.

“We have moved quickly to create programs to attract and grow business here and jumpstart our economy,” said Raimondo. “By making it easier to for companies to add jobs and to put shovels in the ground, we will be creating opportunities for everyone to make it in Rhode Island.”

“The budget we passed unanimously in the House in June included these creative economic development programs,” said Mattiello. “I’m extremely pleased that only four months later, potentially new and existing businesses can already take advantage of these incentives. By working collaboratively with Governor Raimondo and the Senate, we are making things happen quickly.”

“These incentives are important tools in the state’s efforts to encourage job creation and spark construction activity. The Senate will continue to work collaboratively with Governor Raimondo and the House to foster economic growth and prosperity,” said President of the Senate M. Teresa Paiva Weed.

The Qualified Jobs Incentive encourages new job creation through both business attraction and growth. This incentive provides a base tax credit (1) for companies relocating to the state and creating a minimum number of new jobs and (2) for current Rhode Islandcompanies growing their in-state workforce by a threshold percentage. The annual base tax credit is $2,500 for each new full-time job created, with possible add-ons of up to $5,000 per job if specific criteria are met. The first 500 jobs approved under the program will receive the maximum credit allowed.

The Rebuild Rhode Island Tax Credit fosters growth in construction and real estate development by providing a tax credit of up to 20 percent of project costs to qualified real estate projects of $5 million or more that demonstrate a financing gap. The credit may be increased up to 30 percent for designated project types and locations. November 25, 2015 is the initial deadline for Rebuild Rhode Island applications; the Commerce Corporation will begin reviewing and advancing applications upon receipt.

To learn more about these program visit the Rhode Island Commerce Corporation’s website. Potential applicants for any of the new incentives are encouraged to contact the Commerce Corporation’s Business Development team at (401) 278-9100 orbusiness.development@commerceri.com.

Thinking About a Better Business Climate in RI

As part of her continuing effort to make it easier and less expensive to do business in Rhode Island, Governor Gina M. Raimondo recently met with business leaders at Amica to hear how the elimination of the sales and use tax on commercial energy is putting money back into the pockets of local companies.

“I am focused everyday on how we can work together to create jobs,” said Raimondo. “A key component to that mission is making it easier and less expensive for our companies to operate here. Eliminating this tax will put over over $20 million this fiscal year back in their pockets for investment and growth.”

Over 70,000 Rhode Island businesses are expected to save over $20 million annually combined. Specifically, Amica Insurance is anticipating over $80,000 in savings for the year. With this move, Rhode Island now has one of the lowest tax rates on commercial energy use in the Northeast.

“By doing away with this energy tax, Amica Insurance anticipates some significant savings,” said Paul Pyne, Executive Vice President and Chief Operations Officer of Amica Insurance. “This money can be reinvested in our company to create more economic growth in the years ahead. We appreciate the opportunity to work closely with the state to move Rhode Island’s economy forward.”

Rhode Island non-manufacturing commercial businesses continue to pay a public utilities gross earnings tax (4 percent for electricity and 3 percent for natural gas), which is lower than both Massachusetts and Connecticut, who continue to collect a sales tax on non-manufacturing commercial businesses.

Thinking About Energy Efficiency in RI

Rhode Island is one of the most energy efficient states in the nation.

Those are the findings of a recent study conducted by personal finance website WalletHub to bring awareness to the impact of energy on our wallets and encourage Americans to conserve more.

Rhode Island ranked sixth out of the 48 states on the U.S. mainland. Due to data restrictions, WalletHub could not include Alaska and Hawaii.

To identify the most energy-efficient states, WalletHub analyzed data for the lower 48 states based on two key dimensions, including “home-energy efficiency” and “car-energy efficiency.”

Energy is expensive. It’s one of the biggest household expenses for American consumers, who, on average, spend nearly $2,000 a year on energy bills, nearly half of which pays just for heating and cooling expenses. according to WalletHub.

According to a McKinsey & Company report, an estimated $520 billion initial investment on energy efficiency measures could save the economy more than $1.2 trillion in the future.

See where all the 48 states rank.

Source: WalletHub

 

Thinking About Making it Easier to do Business in RI

Governor Gina M. Raimondo and Secretary of Commerce Stefan Pryor, in partnership with the Rhode Island Commerce Corporation, state agencies and Rhode Island Chambers of Commerce have launched the Commerce Corporation’s new Business Navigation Center. The Center will serve as a starting point for all businesses conducting, or looking to conduct, business in Rhode Island, and is one piece of a larger initiative to make Rhode Island more business friendly.

Use the Center as your starting point for conducting business in Rhode Island, whether your company is already here or looking to move here. Upon contact, you will receive a single, personal advisor from the team here to personally guide you through the solutions to each of your business challenges. Your advisor will act on your behalf in reaching out to state and local agencies as well as private partners.

Through the center, the Commerce Corporation will offer a unique service to address the complexities of starting a business and to showcase the toolkit of programs available to existing businesses in Rhode Island.

“Every week, my schedule includes time to reach out to companies to listen, to ask them to take a second look at our state,” said Governor Gina M. Raimondo. “One of the biggest struggles I hear is finding a way to navigate the red tape. With my jobs plan, we have taken huge strides to change to make it easier to do business in Rhode Island, and we’re taking another important step forward today with the launch of the Business Navigation Center. This Center will serve as a one-stop shop for existing business looking to grow and new businesses looking to move to here, making government an effective partner in promoting innovation and creating jobs.”

In fact, the Business Navigation Center is steered by an advisory council comprised of the Greater Providence, Northern Rhode Island, Central Rhode Island, and Newport Chambers of Commerce, and joined by Mark Hayward of the Small Business Administration regional office — all who share the mission of making Rhode Island more business friendly.

“Focusing on business retention and expansion is critical to strengthening Rhode Island’s economy. Through creation of our Business Navigation Center, we are providing a one-stop-shop to businesses — an accessible and responsive concierge service that can get the job done for Rhode Island companies large and small,” said Stefan Pryor, Rhode Island Secretary of Commerce.

Rhode Island, through the Business Navigation Center, is open for business.

Any businesses interested in learning more should contact Rhode Island Commerce Corporation Vice President of Client Services Elizabeth Tanner at elizabeth.tanner@commerceri.com or (401) 278-9195.

Thinking About RI as 4th Ranked Broadband Leader in U.S.

As reported in Business Facilities Magazine‘s 11th Annual State Rankings Report in 2015, Rhode Island ranked 4th in the U.S. in the category of Broadband Leaders, namely digital infrastructure. Rhode Island beat out other top ten-ranked Northeast states – New York and New Jersey – and placed right behind third-ranked Massachusetts.

The 11th Annual Rankings report is Business Facilities‘ most comprehensive evaluation to date of state, metro and international leaders in more than 50 critical categories essential to site selection choices. The publication is the leading source of intelligence for corporate site selection, expansion, relocation & economic development opportunities.

Rhode Island’s compact footprint means super-fast connectivity and broad coverage

Broadband users in Rhode Island experience among the highest connection speeds measured among U.S. states, notably ranked in the top ten in the nation for download speed. In our state’s compact geography there are 19 broadband carriers doing business in Rhode Island. Combining that with the superior capacity of our many institutions of higher education, we are well ahead of the curve in broadband infrastructure.

Here are some additional important facts: Akamai Technologies in Q4 2013, ranked Rhode Island 8th in the nation in broadband speed. Rhode Island also ranked in the top 10 for broadband and high broadband connectivity. Rhode Island ranks 2nd in the U.S. for broadband adoption. Using U.S. Department of Commerce National Telecommunications and Information Administration (NTIA) definitions, wireline (cable, fiber, DSL) broadband is available to 97% of Rhode Island businesses and residents and has 100% wireless broadband coverage. Most Rhode Island businesses have a choice of broadband providers many with 5 to 10 provider options when combining wireline and wireless offerings.

Think bigger and learn more about Rhode Island’s other business advantages.

Thinking About Taxes & Incentives in RI

Rhode Island offers an increasingly competitive, predictable business environment. Thanks to our governor and legislature’s leadership on pension and Medicaid reform, we have reined in structural costs and flattened their trajectories. As a result, we can ensure businesses a stable tax structure.

Rhode Island has not raised its top personal income, corporate income or sales tax rates in a generation. Instead, we recently lowered our top personal income tax rate (from 9.9% to 5.99%), as well as our corporate tax rate (from 9% to 7%). Rhode Island’s corporate tax rate is now the lowest in the Northeast.

Potent Incentives for Businesses and Workers

A strong signal of the state’s commitment to economic growth, Rhode Island’s legislature passed, nearly unanimously and in record time, a powerful suite of new programs aimed at growing businesses and creating jobs as proposed by Governor Raimondo. These incentives, benefiting businesses of every size, are some of the most significant and comprehensive in the Northeast, if not the nation.

• Qualified Jobs Incentive
• Anchor Institution Tax Credit
• Industry Cluster Grants
• Small Business Assistance Program
• Rebuild Rhode Island Tax Credit
• Tax Increment Financing
• Main Street Rhode Island
• Tax Stabilization Incentive
• Innovation Vouchers
• Qualified Jobs Incentive
• Wavemaker Fellowship

View a comprehensive list of Rhode Island’s tax incentive programs here, and get in touch with any questions.

Think bigger and learn more about Rhode Island’s other business advantages.

Thinking Big About International Travel in RI

“In its second month of service, Providence is rockin’ it with scheduled long-haul service to Europe. Previously offering only domestic flights, T.F. Green Airport has scored it big with bargain-seeking flyers looking to fly overseas,” according to a recent USA Today Travel article.

That’s laudable praise for the smallest airport in the U.S. to offer European flights.

Beginning in June 2015, Condor Airlines started regularly scheduled seasonal service from Frankfurt, Germany (FRA) to T.F. Green Airport (PVD). Support for the entrance of Condor into the Rhode Island market has been a coordinated effort of the airport working in unison with government and travel and tourism partners.

“The USA has so much more to offer than just California, New York and Florida. Rhode Island is a very special destination for our customers. The new Condor flights offer the best access to New England’s tourist highlights such as the beaches of Cape Cod, Martha‘s Vineyard and Nantucket. The metropolis of Boston is less than an hour’s drive away,” explained Jens Boyd, Head of Long-Haul at Thomas Cook Group Airlines.

“We welcome Condor to T.F. Green Airport and the State of Rhode Island. Today marks a milestone for the airport as this is the first time we are able to offer non-stop scheduled international service to Greater Europe and connecting destinations,” said Kelly Fredericks, President and CEO of the Rhode Island Airport Corporation that manages and operates T.F. Green Airport in the announcement of the Condor partnership. “We fully recognize the many positive impacts this service will have not only on the airport, but to the state and region with regard to inbound tourism and business development.

Condor isn’t the only international airline to set-up shop in Rhode Island this year. In June, Transportes Aereos de Cabo Verde (TACV) also began offering service from Green Airport to the Cabo Verde Islands. The state’s Cabo Verdean community has a strong presence throughout New England, particularly in Rhode Island and communities surrounding Green Airport.

“Our Cabo Verdean community is strong and vibrant, and I want to welcome TACV Airlines to T. F. Green Airport as the first year-round scheduled international service,” said Governor Gina Raimondo.

Think bigger and learn more about Rhode Island’s other business advantages.