Rhode Island hopes to increase its appeal to site seekers and businesses with a new tax reform initiative. Gov. Lincoln Almond will introduce in this legislative session a bill that would reduce or eliminate the capital gains tax. Capital gains are the profits from the sale of real estate property, stocks, or mutual funds.
     The state senate majority leader, William V. Irons, hopes to restructure the state's tax system to allow Rhode Island to be more competitive with surrounding states. Currently, the Ocean State's tax liability system is based upon federal liability. The proposed system would be based upon gross adjusted income. Both these measures appear to have a strong chance of passage.
     "A great deal of Rhode Island competes with Massachusetts and Connecticut," says Majority Leader Irons. "There is no reason why an [entrepreneur] -- who is going to create jobs and help the economy -- should locate on the other side of the Seekonk River."

Maine's strategy seeks to attract several new or
emerging industries by implementing measures in the
educational, business climate, infrastructure and other arenas.

     Rhode Island has traditionally offered businesses liberal tax credits. The state grants a tax credit of 22.5 per cent-- the most aggressive in the country--to businesses expanding research and development expenditures. Rhode Island also offers a generous investment tax credit program.
     These incentives have not gone unnoticed. Cable giant Cox Communications spent $3.3 million last summer in renovations on their New England Customer Care Center in West Warwick, R.I. The company now has 1,000 employees in Rhode Island and is looking to hire an additional 200 this year.