Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 20 - TAX CREDITS/DEDUCTIONS
Part 3 - Historic Structures Tax Credit (280-RICR-20-20-3)
Section 280-RICR-20-20-3.4 - Tax Credit
Universal Citation: 280 RI Code of Rules 20 20 3.4
Current through September 18, 2024
A. General. A Person that incurs Qualified Rehabilitation Expenditures for the Substantial Rehabilitation of a Certified Historic Structure certified in accordance with these Regulations is entitled to a credit against the tax imposed on such Person pursuant to R.I. Gen. Laws Chapter 44-11, 44-13 (other than the tax imposed under R.I. Gen. Laws § 44-13-13), 44-14, 44-17 or 44-30. The Initial Certificate Holder or the Assignee of such Person may also claim the Credit in accordance with these Regulations.
B. Amount of Credit.
1. For Certified Historic Structures or some
identifiable portion thereof that are Placed in Service prior to January 1,
2008, the Historic Preservation Investment Tax Credit is equal to thirty
percent (30%) of the Qualified Rehabilitation Expenditures.
2. For Certified Historic Structures or some
identifiable portion thereof that are Placed in Service after December 31, 2007
for which a Part 1 Application was recorded as received by the Commission
before January 1, 2008, the Historic Preservation Investment Tax Credit can
range between twenty five percent (25%) and twenty seven percent (27%) of the
Qualified Rehabilitation Expenditures set forth in the Contract.
C. When Allowed. The Historic Preservation Investment Tax Credit shall be allowed for the year in which the Certified Historic Structure or an identifiable portion thereof is Placed-in-Service.
D. Minimum Expenditure. In order to qualify for the Historic Preservation Investment Tax Credit, an Owner must meet the Substantial Rehabilitation test.
E. Phased Projects.
1. In the case of a Phased Project, the
credit allowed shall be limited to the Estimated Qualified Rehabilitation
Expenditures as reported on the addendum to Contract for Historic Preservation
Investment Tax Credit for each phase. Any Qualified Rehabilitation Expenditures
in excess of the estimated amount for any phase shall be carried over to the
next subsequent phase and added to the Qualified Rehabilitation Expenditures
for that phase. The credit allowed for that subsequent phase shall still be
limited to the Estimated Qualified Rehabilitation Expenditures for that phase
as reported on the addendum.
a. Examples
(1) A four phase project with a total
Qualified Rehabilitation Expenditures of 16 million dollars in equal phases of
4 million dollars each with a total credit amount of 25% or 4 million dollars
was reported on the addendum. In the first phase, the Qualified Rehabilitation
Expenditures were 6 million dollars. The credit will be limited to 25% of the
first 4 million dollars of Qualified Rehabilitation Expenditures or 1 million
dollars. The excess 2 million dollars of Qualified Rehabilitation Expenditures
will be carried forward to the next subsequent phase. In the next phase, the
actual Qualified Rehabilitation Expenditures were 3 million dollars plus the 2
million dollar carried forward amount for a total allowable Qualified
Rehabilitation Expenditures of 5 million dollars. The credit will be limited to
25% of the first 4 million dollars of Qualified Rehabilitation Expenditures or
1 million dollars. The excess 1 million dollars of Qualified Rehabilitation
Expenditures will be carried forward to the next subsequent phase. This
procedure will be continued until the project has reached the total Qualified
Rehabilitation Expenditures or the total credit amount has been reached,
whichever is less.
(2) A two phase
project with a total Qualified Rehabilitation Expenditures of 8 million in
equal phases of 4 million dollars each with a total credit of 25% or 2 million
dollars was reported on the addendum with completion dates of December 31, 2008
for the first phase and December 31, 2010 for the second phase. The first phase
was completed on December 31, 2008 and all required filings were submitted
timely. The Assignable Historic Preservation Investment Tax Credit Certificate
will be issued in the amount of 1 million dollars. The second phase was
completed on December 31, 2009. Since phase two was completed one year earlier
than the time reported on the addendum to the Contract, the Assignable Historic
Preservation Investment Tax Credit Certificate will not be issued until
December 31, 2010.
2. If the actual Qualified Rehabilitation
Expenditures for a phase are less than the estimated amount as reported on the
addendum, the credit shall be limited to the applicable percentage of the
actual Qualified Rehabilitation Expenditures incurred for that phase. Any
unused credit amount of a phase may be carried forward to the next subsequent
phase. That subsequent phase shall be allowed a credit calculation as if the
carried forward credit amount has been reported on the addendum.
a. Example
(1) A four phase project with a total
Qualified Rehabilitation Expenditures of 16 million dollars in equal phases of
4 million dollars each with a total credit amount of 25% or 4 million dollars
was reported on the addendum. In the first phase the Qualified Rehabilitation
Expenditures were 2 million dollars. The credit will be limited to 25% of the
actual 2 million dollars of Qualified Rehabilitation Expenditures or 1/2
million dollars ($500,000). The unused credit of 1/2 million dollars ($500,000)
will be allowed as a carry forward the next subsequent phase. In the next
phase, the actual Qualified Rehabilitation Expenditures were 5 million dollars.
The allowed credit will be limited to 25% of the 5 million dollars or 1.25
million dollars ($1,250,000.) The unused credit will be carried forward to the
next subsequent phase. This procedure will be continued until the project has
reached the total Qualified Rehabilitation Expenditures or the total credit
amount has been reached, whichever is less.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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