PROVIDENCE – Legislation aimed at amending the state’s historic tax credit became law on April 12, bringing it with it sweeping changes to a program that has led to vast investment in Rhode Island development.
According to a news release from the R.I. Division of Taxation, House Bill 8016 Sub A and Senate Bill 2846 Sub A will require developers who wish to continue in the R.I. Historic Preservation Investment Tax Credit program to file Form HTC-V and pay 2.25 percent of their estimated Qualified Rehabilitation Expenditures by May 15.
All projects placed in service prior to Jan. 1, 2008 will receive 30 percent tax credit. Final applications must be submitted to the R.I. Historic Preservation and Heritage Commission and fee of 2.25 percent paid to Division of Taxation on or before May 15. Projects that fail to submit final application or fail to make payment by May 15 will not be eligible to receive tax credits.
The new law restricts future eligibility to projects that submitted an initial application to the commission prior to Jan. 1 2008. Projects that submitted an initial application to the commission after Dec. 31, 2007 will not be eligible for the program.
Projects that wish to continue in the program must pay a processing fee ranging from 3 percent to 5 percent of Qualified Rehabilitation Expenditures, with 2.25 percent of qualified rehabilitation expenditures due on or before May 15, with the balance due on or before March 5, 2009. •
