The bill amends the "Rebuild Rhode Island Tax Credit" program by introducing new eligibility criteria for tax credits related to qualified development projects. For projects involving the development of housing and mixed-use projects that include at least 20% affordable or workforce housing for residents earning between 80% and 120% of the area median income (AMI), applicants may receive sales and use tax exemptions of up to 30% of the maximum project credit, in addition to the maximum project credit of $15 million. These exemptions are applicable for purchases made by June 30, 2028.

The bill establishes new wage requirements for construction projects. Until July 1, 2025, all construction projects exceeding $10 million must comply with prevailing wage laws, requiring contractors and subcontractors to submit certified payrolls monthly. After July 1, 2025, for projects with budgets over $25 million that have executed a tax credit agreement, similar wage requirements will apply. Non-compliance with these wage requirements will be considered a material violation of the agreement with the state.

Additionally, the bill increases the maximum budget for historic preservation tax credit projects from $10 million to $25 million. It also stipulates that no tax credits will be awarded unless the commerce corporation receives confirmation from the Department of Labor and Training that prevailing wage requirements have been met.

The act aims to enhance the integrity of the tax credit program while promoting economic development and job creation in Rhode Island, with specific provisions set to take effect on January 1, 2025.

Statutes affected:
940: 42-64.20-5
940  SUB A: 42-64.20-5
940  SUB A as amended: 42-64.20-5, 44-33.6-3