The bill amends the "Rebuild Rhode Island Tax Credit" program by establishing new eligibility criteria for tax credits associated with qualified development projects. For construction projects exceeding $10 million, the bill mandates compliance with prevailing wage laws, requiring all construction workers to be paid according to the wages and benefits set forth in chapter 13 of title 37. Contractors and subcontractors are required to submit certified payrolls on a monthly basis for all work completed in the preceding month. This requirement is set to expire on July 1, 2025. For projects that execute a tax credit agreement on or after July 1, 2025, and involve a budget of direct hard construction costs in excess of $25 million, similar wage compliance requirements will apply.

The bill also increases the maximum project budget eligible for historic preservation tax credits from $10 million to $25 million. Additionally, it introduces a provision that no tax credits shall be awarded unless the commerce corporation receives confirmation from the department of labor and training that there has been compliance with the prevailing wage requirements.

For qualified development projects involving housing and mixed-use projects that require at least 20% of the housing units to be affordable or workforce housing for residents making no more than between 80% and 120% of the area median income (AMI), the bill allows for sales and use tax exemptions of up to 30% of the maximum project credit, in addition to the maximum project credit of $15 million. Any sales and use tax exemptions allowed in addition to the maximum project credit shall be for purchases made by June 30, 2028.

The act will take effect on January 1, 2025, with specific provisions related to tax credits and wage compliance.

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