The state House of Representatives has before it a proposal that would allow property
tax credits of 25 percent of the total costs and expenses incurred by the owner
of an historic residence for the rehabilitation of such property and allow the
tax credit to be carried forward for up to 10 years.
The purpose of the bill, according to those legislators who are sponsoring it, is that the “preservation of Rhode Island’s historic structures enhances an understanding of the state’s heritage, improves property values, fosters civic beauty, and promotes public education, pleasure, and welfare.”
We would agree with all of that, and add that in the long run, the passage of this legislation is apt to help economic development efforts – particularly in the downtown districts of Providence, Pawtucket and Woonsocket.
We have long heard the very real concerns of commercial property owners who would like to enhance or significantly renovate their properties, but can not necessarily afford to do so. The result is long-term vacancies – jewels remaining unpolished.
Perhaps such an historic tax credit could help push even a few projects forward and the results would benefit all of us.
We have reviewed the legislation carefully and it appears to contain the necessary caveats. For example, properties eligible for such a credit would have to exist in a “certified historic district,” of which many exist in Rhode Island.
The legislation also includes a restrictive covenant stating that no historic structure maintained or rehabilitated may benefit from the provisions of the law unless the owner of the structure agrees that the structure shall retain its use and be maintained in a manner which retains its rehabilitated portions — for the life of the tax break.
