The Rhode Island Division of Taxation has posted, as final, its regulation on tax credits under the new Wavemaker Fellowship Program.
The program, which was proposed by Governor Gina M. Raimondo and approved by the General Assembly in 2015, is intended to provide an incentive to keep educated individuals in the state.
The tax credits will help qualifying applicants, who have graduated from college and who meet program rules, to pay their higher education loans. The credits can be applied against the Rhode Island personal income tax.
- Successful applicants must demonstrate a 12-month service period that begins upon receipt of the award. Thus, the credits will not apply for filing 2015 returns. The earliest the credits can be claimed is in early 2017, for the 2016 tax year. Still, tax professionals will want to be familiar with the program for tax-planning purposes.
- The Division of Taxation regulation mirrors one posted by the Rhode Island Commerce Corporation and takes effect March 14, 2016. For more information about the program, see the Commerce Corporation website.