The bill amends Chapter 44-11 of the General Laws to introduce the "Affordable Housing Tax Credit Act," which aims to address the inadequate supply of affordable housing for low-income individuals and families in Rhode Island. It establishes a state low-income housing tax credit for business firms that qualify for the federal low-income housing tax credit, allowing eligible firms to apply for a state tax credit equal to 50% of the federal credit they receive in the current tax year. This initiative is designed to incentivize investment in low-income rental housing production.

Additionally, the bill eliminates sales tax on materials used in the renovation of affordable rental housing properties and exempts income derived from the sale of deed-restricted affordable housing from taxation. It also establishes a ten-year freeze on the tax valuation of newly renovated affordable rental housing properties, ensuring that the assessed tax valuation remains at the most recent assessed value prior to the completion of renovations.

The bill further amends Section 44-18-30 of the General Laws to clarify exemptions from sales and use taxes, specifically including the sale and storage of materials used in the renovations of affordable rental housing properties. The act will take effect upon passage, reflecting a commitment to enhancing affordable housing options within the state.

Statutes affected:
5402: 44-18-30