Current through March 20, 2024
A. Effective July
3, 2013, R.I. Gen. Laws Chapter 44-33.6 establishes the "Historic Preservation
Tax Credits 2013" program. Persons wishing to participate in this program must:
1. Beginning August 1, 2013 file an
application for the Rhode Island historic preservation tax credits 2013 program
with the Division of Taxation using Rhode Island Form HTC-13. Any application
received prior to August 1, 2013 will be deemed received on August 1, 2013.
These projects will be placed in sequence on a "first come, first served"
basis. This sequence is also referred to within as the "queue", and further
described in §
6.8 of this Part.
2. File Part 1 and Part 2 Applications with
the Commission within ninety (90) days of the date of notification by the
Division of Taxation that tax credits are available for the project.
a. Projects shall have twelve months from the
certification date of Part 2 Application to commence Substantial
Construction.
3. Within
thirty (30) days after the date of Part 2 certification, Applicant shall pay to
the Division of Taxation a non-refundable Processing Fee equal to three percent
(3%) of the estimated QREs;
4.
Enter into a Contract with the Division of Taxation. Prior to entering into the
Contract with the Division of Taxation, any taxpayer who has a project that is
currently entitled to Tax Credits under the Historic Structures - Tax Credit
program under R.I. Gen. Laws Chapter 44-33.2 must withdraw from said program
with respect to that project and forfeit any claims or redress against the
State attributable to that project made available under R.I. Gen. Laws Chapter
44-33.2.
B. The maximum
project credit is $5 million. No building to be completed in phases or in
multiple projects may exceed the maximum project credit of $5 million for all
phases or projects involved in the Rehabilitation of the building.
C. Persons incurring QREs for Substantial
Rehabilitation of a Certified Historic Structure certified in accordance with
these rules and regulation are entitled to a credit in an amount equal to the
following:
1. Twenty percent (20%) of the
QREs; or
2. Twenty-five percent
(25%) of the QREs provided that either:
a. At
least twenty-five percent (25%) of the total rentable area of the Certified
Historic Structure will be made available for a Trade or Business; or
b. The entire rentable area located on the
first floor of the Certified Historic Structure will be made available for a
Trade or Business.
D. Substantial Rehabilitation of the
following properties are ineligible for the tax credit authorized by R.I. Gen.
Laws Chapter 44-33.6;
1. Property that is
Exempt from Real Property Tax;
2. A
Social Club; or
3. A single family
home or a property that contains less than three (3) residential apartments or
condominiums.
E.
Division of Taxation Reporting Requirements:
1. By August 15th of each year, the Division
of Taxation must publicly report the name, address, and amount of tax credit
received for each recipient (developer or initial holder) during the previous
state fiscal year.
2. By September
1st of each year, the Division of Taxation must publicly report in the
aggregate certain information regarding the credits, such as the number of jobs
created, the number of Rhode Island businesses retained for work, the total
amount of QREs, and other items as required by the Tax Administrator.
3. By September 1, 2018, and biennially
thereafter, the Division of Taxation must report in the aggregate the total
number of approved projects, project costs, and associated amount of tax
credits.
F. Restrictive
covenant. As provided in §
6.23 of this Part, upon
issuance of a Certificate of Completed Work, the Owner shall cause to be
recorded in the applicable land evidence records a restrictive covenant
pursuant to which:
1. During the Holding
Period, no alteration to the Certified Historic Structure will be made without
the Commission's approval and in a manner consistent with the Standards for
Rehabilitation,
2. The Certified
Historic Structure may not become Exempt from Real Property Tax, and
3. The Commission and/or the Division of
Taxation shall be granted the right to one or more Inspections during the
Holding Period to confirm matters represented in the Historic Preservation
Certification Application and to review any alterations. If the Owner is the
holder of leasehold title, the fee Owner of the Certified Historic Structure
must also execute the restrictive covenant.
