Tax Incentives

The Town of Bristol offers prospective owners, entrepreneurs and investors tax incentives to encourage business development in town.

Opportunity Zone Program

In May 2018, the Town of Bristol's Census Tract 307 was designated as a Qualified Opportunity Zone by the U.S. Treasury.  

Created as part of the Tax Cut and Jobs Act of 2017, the Opportunity Zones Program is a new approach to encourage private-investment in historically low-income areas around the country.

These investments come in the form of U.S. Treasury Certified Opportunity Funds. Investors with capital gains tax liabilities will be able to make equity investments in businesses and real estate. Individuals do not need to live in a Qualified Opportunity Zone to invest in these funds.

Census Tract 307 was one of 25 area in Rhode Island nominated by Governor Gina M. Raimondo for this program. Among the areas included in Census Tract, 307 are Bristol's Historic Downtown and Wood Street neighborhood, as seen below.

Opportunity Zone Bristol Map

Opportunity Zone Tax Incentives 

The Opportunity Zones Program offers three tax benefits for investing in a Qualified Opportunity Fund.

Opportunity Zone Tax Incentive Summary (Courtesy of the Economic Innovation Group)

F.A.Q.s

How do I apply to become a Qualified Opportunity Fund (QOF)? 

In Summer 2018, the IRS will release an application for individuals to register as a QOF. The Town of Bristol will provide a link to the application on this page once it is published.

Are there restrictions on the types of activities that qualify for these funds?

Qualified Opportunity Funds could apply toward an array of projects including New Small Businesses, Rehabilitation, Housing Development, Real Estate Acquisition and Other Developments. As more eligibility requirements are released, the Town of Bristol will provide that information here.

Where can I find a list of Qualified Opportunity Funds in Bristol?

The Town of Bristol will provide a list of local Qualified Opportunity Funds as they become available. 

Where can I find more information on this federal tax program?

IRS Fact Page

The U.S. Treasury Community Development Financial Institutions Fund

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For more information on Bristol's Opportunity Zone designation, please contact Chris Vitale, Economic Development Coordinator at cvitale@bristolri.us.

Question Breaker

Tax Stabilization Ordinance

The Town of Bristol Tax Stabilization Ordinance was created to encourage new and improved commercial and manufacturing developments in the Town of Bristol. The phase-in of taxes will provide a benefit to the Town by reason of the willingness of the commercial or manufacturing business to:

  • locate in town; or
  • expand facilities with an increase in employment; or
  • retain or expand facilities and not reduce the workforce; or
  • improve facilities that will result in long-term economic benefits to the town. 

Tax Incentive

Projects valued at $250,000-$499,999 will be considered for a five-year phase-in of taxes as follows: or greater; and, substantial improvements/rehabilitations costing more than 50% of the assessed value of the existing building or structure.

Five Year Program
Percent Exempt From Taxation
Year 1
80
Year 2
60
Year 3
40
Year 4
20
Year 5
0

Projects valued at $500,000 or higher will be considered for either a five-year phase-in of taxes (as seen above) or ten-year phase-in of taxes (as seen below).

Ten Year Program 
Percent Exempt From Taxation
Year 1
90
Year 2
80
Year 3
70
Year 4
60
Year 5
50
Year 6
40
Year 7
30
Year 8
20
Year 9
10
Year 10
0

*This incentive is granted at the sole discretion of the Bristol Town Council.

To learn more about project eligibility for the tax stabilization ordinance, click here.

Complete the Tax Stabilization Application here.

Rhode Island Tax Credits and Grants

The State of Rhode Island provides a wide range of resources to help businesses open and expand their operations. Click below to learn more.

RI Department of Labor & Training Tax Credits

CommerceRI Incentives