APPLICATIONS FOR historic preservation tax credits exceeded the amount of credits available.
By Emily Jones PBN Contributing Writer
PROVIDENCE – The state Division of Taxation has received applications for more historic-preservation tax credits than are available, the agency reported Friday. The state began accepting applications Thursday.
As of the close of business Thursday, applications for 39 projects had requested $54.2 million, Chief Revenue Agent Neil Downing said. The state has $34.5 million in tax credits available. The maximum credit available to each project is $5 million, according to a Jul. 17 release.
“In reopening the historic-tax-credit program, Gov. Lincoln D. Chafee and the General Assembly clearly anticipated that there would be great interest in the program from developers seeking to rehabilitate historic structures in the state,” said Tax Administrator David M. Sullivan. “But until now, we did not know precisely how much interest there’d be. I’m pleased to see that 39 projects throughout the state have applied for the credits so far.”
To address the excess in applications, the Division of Taxation will hold a drawing at 10 a.m. on Tuesday, Aug. 27, according to Downing.
The drawing will determine the order in which projects will earn the right to claim credits. Once chosen, a project will still need approval from the Historical Preservation and Heritage Commission.
If an applicant passes on the tax credit or does not get approved, the next project in line will become eligible.
The Division of Taxation has not yet sorted applications that might have arrived Friday, Downing said. More could still come in early next week.
The tax credits currently available were left unclaimed by projects awarded historic tax credits under the program’s previous incarnation, which ended in 2008, according to the July release.
The credits are available to projects that plan to redevelop or reuse historic properties.