PROVIDENCE, R.I. -- A new state tax credit for manufacturers expected to largely benefit submarine maker Electric Boat was unexpectedly pulled from the House version of the state budget during Tuesday's marathon House debate.
House Finance Committee Chairman Helio Melo, the East Providence Democrat who proposed the provision, said the Democratic majority was striking the budget article in its entirety after concerns were raised. He did not elaborate.
The proposed manufacturing tax credit program would have offered a tax discount worth $500 for every new worker a qualified company hires.
To qualify, a company, at minimum, would have to invest $10 million in real estate, equipment or other capital purchases as well as create at least 100 new full-time jobs.
Electric Boat and other local defense industry leaders had pushed hard for the tax break for manufacturers. But some companies complained the proposed qualifications would be tough for relatively smaller manufacturers to meet.