2019 -- H 6139

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LC002637

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO TAXATION -- HISTORIC PRESERVATION TAX CREDITS

     

     Introduced By: Representatives Abney, and Ruggiero

     Date Introduced: May 22, 2019

     Referred To: House Finance

     (by request)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-33.6-7 of the General Laws in Chapter 44-33.6 entitled "Historic

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Preservation Tax Credits 2013" is hereby amended to read as follows:

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     44-33.6-7. Timing and reapplication.

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     (a) Taxpayers shall have twelve (12) months from the approval of Part 2 application to

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commence substantial construction activities related to the subject substantial rehabilitation.

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Upon commencing substantial construction activities, the taxpayer shall submit an affidavit of

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commencement of substantial construction to the commission, together with evidence of such

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requirements having been satisfied. Furthermore, after commencement of substantial construction

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activities, no project shall remain idle prior to completion for a period of time exceeding six (6)

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months. In the event that a taxpayer does not commence substantial construction activities within

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twelve (12) months from the approval of Part 2 application, or in the event that a project remains

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idle prior to completion for a period of time exceeding six (6) months, the subject taxpayer shall

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forfeit all fees paid prior to such date and its then-current contract for tax credits shall be deemed

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null and void, and shall terminate without need for further action or documentation. Upon any

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such forfeiture and termination, a taxpayer may re-apply for tax credits pursuant to this chapter,

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however, notwithstanding anything contained herein to the contrary, one hundred percent (100%)

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of the fees required shall be paid upon reapplication and such fees shall be non-refundable.

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Additionally, any taxpayer reapplying for tax credits pursuant to this ยง 44-33.6-7 shall be required

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to submit evidence with its application establishing the reason for delay in commencement or the

 

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project sitting idle, as the case may be, and provide evidence, reasonably satisfactory to the

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commission, that such condition or event causing same has been resolved. All taxpayers shall

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submit a reasonably detailed project timeline to the commission together with the Part 2

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application. The provisions of this section shall be further detailed and incorporated into the form

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of contract for tax credits used in connection with this chapter.

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     (b) Notwithstanding any other provision of law to the contrary, projects that have been

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approved for historic preservation tax credits and have been funded through the cultural arts and

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the economy grant program, as enacted in chapter 145 of the 2014 Pub. L., and whose tax credits

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expire on December 31, 2019, shall remain in full force and effect until December 31, 2022.

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     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 -- HISTORIC PRESERVATION TAX CREDITS

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     This act would extend the use of historic tax credits for three (3) years until December

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31, 2022, for all projects which have been funded through the cultural arts and the economy grant

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program, as enacted in chapter 145 of the 2014 Pub. L., and which would have expired on

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December 31, 2019.

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     This act would take effect upon passage.

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