The federal tax credit that could be used to help some Bristol entrepreneurs recover up to 20 percent of the cost of renovating the historic Belvedere Hotel, has been used widely in the past and has helped with the revitalization of Downtown Providence, according to the head of the state’s agency for historic preservation. Over the past 10 to 15 years the Rhode Island Historic Preservation & Heritage Commission has reviewed projects involving approximately $300 million in tax credits, said Edward Sanderson, the commission’s executive director. Projects that have qualified for the federal tax credit include the Providence Biltmore Hotel, the Providence Journal Co.’s old building on Westminster Street, bed and breakfast inns throughout the state, Block Island hotels, and a number of affordable housing projects in Providence and Woonsocket, Sanderson said.
To qualify for the federal tax credit, a project must involve “what the Internal Revenue Service calls a ‘substantial rehabilitation'” of a historic property, which would be used to produce income, he explained. The property must also be listed on the National Register of Historic Places, Sanderson added. Developers are allowed a deduction of up to 20 percent for rehabilitation costs.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
The Belvedere Hotel project qualifies because it is part of Bristol’s waterfront district, which is listed on the National Register.
The Historic Preservation & Heritage Commission and the National Parks Service must approve any work done to the property, according to Sanderson. The Commission also makes a recommendation to federal officials on whether or not to grant the tax credit. A commission architect closely reviewed plans to renovate the Belvedere, including plans to rebuild a rooftop restaurant that was destroyed by a 1928 fire.
The tax incentive program, Sanderson said, “has contributed enormously to rebuilding Downtown Providence. It has made a huge contribution to turning Newport into the huge historic tourist attraction it is today.”
