2016 -- S 2814

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION -- RHODE ISLAND LIVABLE HOME TAX CREDIT ACT

     Introduced By: Senators Nesselbush, Miller, P Fogarty, Sosnowski, and Jabour

     Date Introduced: March 23, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

adding thereto the following chapter:

CHAPTER 70

RHODE ISLAND LIVABLE HOME TAX CREDIT ACT

     44-70-1. Short title. -- This chapter shall be known and may be cited as the "Rhode

Island Livable Home Tax Credit Act."

     44-70-2. Tax credits. -- For taxable years beginning on and after January 1, 2017, any

taxpayer who purchases a new residence or retrofits or hires someone to retrofit an existing

residence, provided that such new residence or the retrofitting of such existing residence is

designed to improve accessibility or provide universal visitability, and meets the eligibility

requirements established by guidelines developed by the governor's commission on disabilities,

shall be allowed a credit against the tax imposed pursuant to §44-30-1 of an amount equal to five

thousand dollars ($5,000) for such new residence, or fifty percent (50%) of the total amount spent

for the retrofitting of such existing residence, not to exceed five thousand dollars ($5,000). The

credit shall be allowed for the taxable year in which the residence has been purchased or

construction, retrofitting, or renovation of the residence or residential structure or unit has been

completed. Such credit shall require a completed application by the taxpayer as provided in §44-

70-4.

     44-70-3. Applications. -- Eligible taxpayers shall apply for the credit by making

application to the governor's commission on disabilities, which shall issue a certification for an

approved application to the taxpayer. The taxpayer shall attach the certification to the applicable

income tax return. The total amount of tax credits granted under this section for any fiscal year

shall not exceed five hundred thousand dollars ($500,000). In the event applications for the tax

credit exceed the amount allocated by the governor's commission on disabilities for the fiscal

year, the governor's commission on disabilities shall issue the tax credits pro rata based upon the

amount of tax credit approved for each taxpayer and the amount of tax credits allocated by the

governor's commission on disabilities.

     44-70-4. Limitations. -- (a) No credit shall be allowed under this chapter for the

purchase, construction, retrofitting, or renovation of residential rental property.

     (b) In no case shall the governor's commission on disabilities issue any tax credit relating

to transactions or dealings between affiliated entities. In no case shall the governor's commission

on disabilities issue any tax credit more than once to the same or different persons relating to the

same retrofitting, renovation, or construction project.

     (c) In no case shall the amount of credit taken by a taxpayer pursuant to this chapter

exceed the taxpayer's income tax liability for the taxable year. If the amount of credit allowed for

the taxable year in which the residence has been purchased or construction, retrofitting, or

renovation of the residence or residential structure or unit has been completed exceeds the

taxpayer's income tax liability imposed for such taxable year, then the amount that exceeds the

tax liability may be carried over for credit against the income taxes of such taxpayer in the next

seven (7) taxable years or until the total amount of the tax credit issued has been taken, whichever

is sooner.

     44-70-5. Reporting. -- By August 15 of each year, commencing in 2016, the division of

taxation shall report the number of tax credits issued to qualifying individuals; the number of

applicants who did not qualify; the total dollar amount of tax credits issued; and the average tax

credits issued.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- RHODE ISLAND LIVABLE HOME TAX CREDIT ACT

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     This act would establish the "Rhode Island Livable Home Tax Credit Act", and provide

for its administration.

     This act would take effect upon passage.

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