The bill introduces a new section, 44-11-46, to the "Business Corporation Tax" chapter of the General Laws, establishing the "Affordable Housing Tax Credit Act." This act aims to provide a state low-income housing tax credit for business firms that invest in low-income rental housing production in Rhode Island. The credit is set at fifty percent (50%) of the federal low-income housing tax credit that the business firm qualifies for in the current tax year. The bill also defines key terms such as "business firm," "credit," and "federal low-income housing tax credit," and emphasizes the importance of addressing the shortage of affordable housing for vulnerable populations in the state.

Additionally, the bill amends existing laws related to sales and use tax exemptions, including a new exemption for materials used in the renovation of affordable rental housing properties. It also introduces a section that exempts income derived from the sale of deed-restricted affordable property that has been renovated according to HUD standards. Furthermore, the bill establishes a ten-year freeze on the tax valuation of newly renovated affordable rental housing properties, ensuring that the assessed tax valuation remains at pre-renovation levels for a decade, provided the properties meet certain occupancy and covenant requirements. Overall, the bill aims to incentivize investment in affordable housing and alleviate the housing crisis in Rhode Island.

Statutes affected:
5402: 44-18-30