The proposed bill introduces the "Rhode Island Local Investment Tax Credit Act," which aims to provide an investment tax credit to taxpayers who make qualified investments in local businesses that employ ninety-nine (99) or fewer employees. The credit allows taxpayers to claim fifty percent (50%) of their qualified investment, with a cap of three thousand dollars ($3,000) per qualified business and for all qualified investments combined in a tax year. To qualify for the credit, investments must be certified by the Rhode Island commerce corporation strategic fund, which is responsible for developing an application and approval process for these investments.

The bill also stipulates that the General Assembly shall annually appropriate sufficient funds from the state general fund to fully compensate for any loss of revenue resulting from the tax credits granted under this act. The act is set to take effect upon passage.