2017 -- S 0737

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LC002489

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

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

     Introduced By: Senators Nesselbush, Lombardi, Quezada, Crowley, and Sosnowski

     Date Introduced: April 12, 2017

     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, 2018, 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 2017, 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 would

provide for its administration.

     This act would take effect upon passage.

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LC002489

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