The bill amends Chapter 44-33.6 of the General Laws, titled "Historic Preservation Tax Credits 2013," to enhance the tax credit provisions for the rehabilitation of certified historic structures. It introduces key definitions, including "qualified rehabilitation expenditures," which are now required to be certified by an independent certified public accountant. The tax credit percentage for qualified rehabilitation expenditures is increased from 20% to 30% for projects where at least 80% of the total rental area of the certified historic structure is made available for multi-family housing. A new tier of 35% is established for projects that also meet additional criteria, specifically that 20% of rental units must constitute affordable rental units, or 10% of available units must be sold as affordable housing.

The bill also establishes a maximum project credit of $5 million and mandates compliance with prevailing wage laws for construction workers on larger projects. The application processing fee is reduced from 3% to 1% of qualified rehabilitation expenditures and is made refundable upon receipt of a certificate of occupancy. The deadline for reserving tax credits is extended to June 30, 2031, or upon the exhaustion of the maximum aggregate credits, whichever comes first.

New reporting requirements are introduced, including annual reports by the division of taxation on projects that have received conditional awards of tax credits and information on applicants in the queue. The report will be available for public inspection and published on the tax division website. The act will take effect upon passage.

Statutes affected:
8408: 42-64.20-5