The bill amends Chapter 44-33.6 of the General Laws, titled "Historic Preservation Tax Credits 2013," to enhance the framework for historic preservation tax credits in Rhode Island. Key changes include the introduction of definitions for "Affordable Housing" and "Affordable rental unit," which establish criteria based on household income and housing costs. The tax credit percentage for qualified rehabilitation expenditures is increased from twenty percent (20%) to thirty percent (30%), with further incentives for projects that include affordable housing units, raising the credit to thirty-five percent (35%) if at least twenty percent (20%) of rental units are designated as affordable rental units or ten percent (10%) of available units are sold as affordable housing.

Additionally, the definition of "Qualified rehabilitation expenditures" is modified to require cost certifications from independent certified public accountants. New administrative requirements are introduced, including certifications from the Rhode Island Historical Preservation and Heritage Commission and the Division of Taxation, as well as compliance with prevailing wage requirements for construction projects exceeding $25 million.

The bill stipulates that property owners must make at least eighty percent (80%) of the total rental area available for multi-family housing. It establishes a refundable fee structure for the Division of Taxation at one percent (1%) of qualified rehabilitation expenditures and allows for the assignment of tax credit contracts under certain conditions. New reporting requirements mandate annual reports on projects that have received conditional awards of tax credits, including information on project owners, property addresses, and amounts reserved.

The sunset date for reserving tax credits is extended to June 30, 2031, or upon the exhaustion of the maximum aggregate credits, whichever comes first, with the maximum aggregate credits authorized set at $225 million. The bill aims to promote the rehabilitation of historic structures while ensuring compliance with labor standards and contributing to affordable housing initiatives.

Statutes affected:
3151: 42-64.20-5
3151  SUB A: 42-64.20-5
3151  SUB A as amended: 42-64.20-5