The bill amends Chapter 44-33.6 of the General Laws, titled "Historic Preservation Tax Credits 2013," to enhance tax credit provisions for the rehabilitation of certified historic structures. It introduces new definitions, including "qualified rehabilitation expenditures," which now require specific application to the division of taxation and are based on amounts presented in a cost certification prepared by an independent certified public accountant.

The tax credit for eligible projects is increased from twenty percent (20%) to thirty percent (30%) if at least eighty percent (80%) of the total rental area of the certified historic structure is designated for multi-family housing. The credit further increases to thirty-five percent (35%) for projects where at least eighty percent (80%) of the total rental area is made available for multi-family housing, with twenty percent (20%) of rental units constituting affordable rental units, or ten percent (10%) of available units being sold as affordable housing.

The bill also sets a maximum project credit of five million dollars ($5,000,000) and mandates compliance with prevailing wage laws for larger projects. Additionally, it reduces the application processing fee from three percent (3%) to one percent (1%) of qualified rehabilitation expenditures, which is now refundable upon receiving a certificate of occupancy.

The deadline for reserving tax credits is extended from June 30, 2026, to June 30, 2031, or upon the exhaustion of the maximum aggregate credits, whichever comes first. New reporting requirements are established for the division of taxation, including details on projects that have received conditional awards of tax credits and information on applicants in the queue. The report must be available for public inspection and published on the tax division website.

The act will take effect upon passage, aiming to promote the rehabilitation of historic properties while ensuring compliance with labor standards and affordable housing provisions.

Statutes affected:
3151: 42-64.20-5