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 project financing gap, and alignment with state policy objectives. The bill specifies that eligible projects must have a minimum cost of $5 million, although this can be adjusted for projects in designated hope communities or redevelopment areas. It also introduces streamlined application processes and allows applicants for historic structure tax credits to be considered for Rebuild RI tax credits. Notably, the bill sets a maximum tax credit of 30% of the total project cost or $15 million, whichever is lower, with specific provisions for projects on I-195 land and those involving affordable housing.

Furthermore, the bill includes new provisions that permit sales and use tax exemptions to be added to the maximum project credit, which is capped at $225 million in total credits available under this chapter. It allows for an additional 10% credit for projects meeting certain criteria, such as adaptive reuse of historical structures or providing affordable housing. The allocation process for tax credits is outlined, permitting claims in up to five annual increments and allowing for the assignment or sale of credits, which will be exempt from taxation. The commerce corporation is tasked with creating regulations for the administration of these credits, including eligibility criteria and the redemption process for taxpayers. The act aims to stimulate economic development in Rhode Island by incentivizing qualified projects.

Statutes affected:
1002: 42-64.20-5