2019 -- S 0980 SUBSTITUTE A

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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: Senators Euer, and DiPalma

     Date Introduced: June 13, 2019

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 44-33.6-7 and 44-3.6-11 of the General Laws in Chapter 44-33.6

entitled "Historic Preservation Tax Credits 2013" are hereby amended to read as follows:

     44-33.6-7. Timing and reapplication.

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

commence substantial construction activities related to the subject substantial rehabilitation.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     (b) Projects that have been approved for historic preservation tax credits and have been

funded through the cultural arts and the economy grant program, as enacted in chapter 145 of the

2014 Pub. L., and whose contract for tax credits would expire on December 31, 2019, are not

subject to the provisions of § 44-33.6-7 and shall remain in full force and effect until December

31, 2022.

     44-33.6-11. Sunset.

     No credits shall be authorized to be reserved pursuant to this chapter on or after June 30,

2019 2020, or upon the exhaustion of the maximum aggregate credits, whichever comes first.

     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

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

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

December 31, 2019. The act would also extend the sunset provision of the historic tax credits

from June 30, 2019, to June 30, 2020.

     This act would take effect upon passage.

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