The bill amends Section 42-64.20-5 of the General Laws to enhance the "Rebuild Rhode Island Tax Credit" program by establishing new eligibility criteria for applicants seeking tax credits for qualified development projects. Key requirements include a minimum capital investment of 20% of the total project cost, the presence of a financing gap that necessitates tax credits, and alignment with state policy objectives. The commerce corporation is tasked with developing streamlined application processes for various project types, including those involving certified historic structures, recognized historical structures, manufacturers, and affordable housing. The bill also sets a maximum tax credit limit of 30% of the total project cost or the amount needed to close the financing gap, with a cap of $15 million per project, excluding sales and use tax exemptions for projects that include at least 20% affordable or workforce housing.

Furthermore, the bill introduces provisions that allow sales and use tax exemptions in addition to the maximum project credit, with total credits capped at 20% of the project cost and an additional 10% for projects meeting specific criteria. The maximum aggregate credits authorized under this chapter, including sales and use tax exemptions, is capped at $225 million. The allocation process for tax credits is outlined, allowing claims in up to five annual increments and permitting the assignment or sale of tax credits, which will be exempt from taxation under title 44. The commerce corporation will establish regulations for administering these credits, including eligibility criteria and the redemption process for taxpayers, with the act taking effect upon passage to promote economic development in Rhode Island.