Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 20 - TAX CREDITS/DEDUCTIONS
Part 6 - Historic Preservation Tax Credits 2013 (280-RICR-20-20-6)
Section 280-RICR-20-20-6.21 - Assignment of Historic Preservation Tax Credits

Universal Citation: 280 RI Code of Rules 20 20 6.21

Current through March 20, 2024

A. Issuance of Assignable Historic Preservation Tax Credit Certificate to Owner, initial Assignee, or participant. Upon approval by the Commission of the Substantial Rehabilitation of a Certified Historic Structure and by the Division of Taxation of the amount of credit allowed pursuant to these rules, the Division of Taxation shall issue an Assignable Historic Preservation Tax Credit Certificate to the Owner or any eligible Initial Certificate Holder. If the Owner or the participant is a pass-through entity, or if there are multiple Owners, the Division of Taxation may issue an Assignable Historic Preservation Tax Credit Certificate to each participant in such pass-through entity or each Owner, indicating on the face of such certificate(s) the amount of the historic preservation tax credit allocable to such participant. The amount assigned to each participant will be the amount represented by the Applicant in the application for issuance of tax credit certification.

B. Determination of Amount of Credit allocated to Participants in Pass-Through Entities. The amount allocated to each participant on the Assignable Historic Preservation Tax Credit Certificate issued to such participant must be either:

1. In proportion to the number of participants in the Owner; or

2. Determined in accordance with any allocation method set forth in an Allocation Agreement among all participants, which may be without regard to their sharing of other tax or economic attributes of such entity set forth in the Allocation Agreement. The Division of Taxation shall have no obligation to confirm the amount stated for each participant in the application for completed work or to review the Allocation Agreement.

C. Assignment of Certificate. An Assignable Historic Preservation Tax Credit Certificate may be assigned to any Person, whether or not such Person has an Ownership interest in the Certified Historic Structure, provided that no credit has been claimed based on the Assignable Historic Preservation Tax Credit Certificate being assigned. The certificate may be assigned by endorsing the assignment clause set forth on the certificate and delivery of the original certificate to the Assignee. Assignees of the credit and their Assignees may further assign the credits, provided that no credit has been claimed based on the Assignable Historic Preservation Tax Credit Certificate being assigned.

D. Assignee Recognition of Credit. The Assignee may use the historic preservation tax credit only to offset the tax imposed for the taxable year in which the certified structure or an identifiable portion thereof is Placed-in-Service, or for taxable years to which the credit is carried forward. The Assignee may apply the historic preservation tax credit against taxes imposed on the Assignee until the end of the tenth (10th) calendar year after the year in which the Substantial Rehabilitation is Placed-in-Service or until the full credit assigned is used, whichever occurs first. Fiscal year Assignees may claim the credit until the expiration of the fiscal year that ends within the tenth (10th) year after the year in which the Substantial Rehabilitation is Placed-in-Service.

E. Filing with Tax Return. An original executed copy of the Assignable Historic Preservation Tax Credit Certificate shall be attached to the tax return of the Owner, participant or Assignee who desires to claim the credit. A participant of a pass-through entity who transfers its interest in the entity must also endorse and deliver the Assignable Historic Preservation Tax Credit Certificate to the transferee if the transferee desires to claim the historic preservation tax credit.

F. Notification of Assignment to Division of Taxation. An Assignor of all or any portion of the historic preservation tax credit shall notify the Division of Taxation in writing within thirty (30) calendar days following the effective date of such assignment. Attached to such written notification (the Notification of Assignment) shall be:

1. A copy of the Assignable Historic Preservation Tax Credit Certificate, endorsed to the Assignee. The original certificate shall not be included with the Notification of assignment, which must be retained by the Assignee and attached to the Assignee's tax return for the year with respect to which the historic preservation tax credit is claimed.

2. A copy of the Certificate of Completed Work issued by the Commission.

3. The name, address and telephone number of the Assignor and of the Assignee.

4. The taxpayer identification number or social security number of the Assignor and the Assignee.

5. For non-resident corporations, partnerships, LLCs, or other entities, the name and address of such entity's registered agent in the state of Rhode Island and evidence of qualification to do business in Rhode Island.

G. Multiple Assignees; Reissuance of Certificate. If an Assignable Historic Preservation Tax Credit Certificate has not been used in whole or in part, and the holder desires to assign its interest in the credit to one or more Assignee(s), the holder must make a request of the Division of Taxation to reissue the original certificate in such number of certificate(s) as the holder desires. The request must be made in writing, must specify the number of new certificates desired and the amount to be specified on each certificate, and must attach the original certificate for cancellation by the Division of Taxation.

H. Treatment of Proceeds of Assignment for State Tax Purposes. The Assignor of all or a portion of the historic tax credit shall not recognize any state income tax under the provisions of R.I. Gen. Laws Title 44 with respect to the proceeds of such assignment. The Assignor of any credit shall attach a copy of the Assignable Historic Preservation Tax Credit Certificate to its tax return to evidence that such proceeds are not subject to state income tax. If the historic preservation tax credit is subsequently recaptured under R.I. Gen. Laws § 44-33.6-4(h), revoked or adjusted, the Assignor's tax calculation for the year of revocation, recapture, or adjustment shall be increased by the total amount of the sales proceeds, if any, without proration, as a modification under R.I. Gen. Laws Chapter 44-30. In the event that the Assignor is not a natural person, the Assignor's tax calculation under R.I. Gen. Laws Chapters 44-11, 44-13 (other than with respect to the tax imposed under R.I. Gen. Laws § 44-13-13), 44-14, 44-17, or 44-30 as applicable, for the year of revocation, recapture, or adjustment, shall be increased by including the total amount of the sales proceeds, if any, without proration.

I. Administrative Fees. The Commission and/or the Division of Taxation may assess reasonable administrative fees for issuing multiple Assignable Historic Preservation Tax Credit Certificates or for reissuing certificates.

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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