Rhode Island House Bill H5741

Rhode Island 2025 Regular Session

• Introduced: 2/26/25
• Refer: 2/26/25

Caption

Amends provisions related to the maximum project credit allowed under the rebuild Rhode Island tax credit for certain qualified development projects.

Impact

The amendments proposed in H5741 potentially have significant ramifications for state economic development policy. By raising the upper limit on tax credits available for certain projects to a maximum of $15 million, the legislation encourages more ambitious capital projects. This could attract both local and outside investors, ultimately contributing to job creation and economic revitalization. The criteria specified for eligibility include a requirement for a minimum capital investment, suggesting a targeted approach to ensure that the projects undertaken are meaningful and capable of impacting state objectives.

Summary

House Bill 5741 addresses amendments to the 'Rebuild Rhode Island Tax Credit' aimed at adjusting the maximum project credit allocation for qualified development projects. This bill is specifically introduced to increase the financial support available for significant development gaps that cannot be closed through existing funding mechanisms. By allowing for higher caps on tax credits, it is designed to stimulate larger investments in commercial and mixed-use developments throughout the state, particularly in areas that have seen slower economic growth.

Contention

Discussions surrounding H5741 may arise regarding the equity of tax credit benefits, particularly whether increased tax incentives disproportionately favor larger development projects over smaller community-based initiatives. Critics could argue that such incentives should also support smaller developers to retain local character and promote affordable housing options in urban centers. Additionally, stakeholders might express concern about the transparency of the allocation process for these credits and whether they'll be adequately monitored to ensure compliance with intended benefits.