The bill introduces the "Affordable Housing Tax Credit Act" to the "Business Corporation Tax" chapter, establishing a state low-income housing tax credit for business firms investing in low-income rental housing in Rhode Island. It acknowledges the shortage of affordable housing as a threat to the welfare of the state's citizens and defines relevant terms. Business firms that qualify for a federal low-income housing tax credit will also qualify for the state credit, which is set at fifty percent of the federal credit. The bill also amends Section 44-18-30 of the General Laws, reiterating existing sales and use tax exemptions without indicating any deletions.

The bill further details various sales tax exemptions, including those for gasoline, airplane fuels, manufacturing inputs, food, medicines, medical equipment, and funeral services. It exempts sales to the state, political subdivisions, and certain vehicles and equipment for persons with disabilities. Additionally, it exempts heating fuels, electricity, gas, and certain machinery and equipment used in manufacturing. The bill also exempts transactions involving precious metal bullion, sales to commercial vessels and fishing vessels, and introduces a new exemption for materials used in renovating affordable rental housing. It amends Chapter 44-30, exempting income from the sale of deed-restricted affordable property from income tax and proposes a ten-year freeze on the assessed tax valuation of renovated residential properties that meet HUD standards and are subject to income or rent restrictions. The act would take effect upon passage.

Statutes affected:
7681: 44-18-30