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| 4 | 4 | | |
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| 5 | 5 | | 2023 -- H 6186 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC002081 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO STATE AFFAIRS AND GOVERNMENT -- REBUILD RHODE ISLAND |
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| 16 | 16 | | TAX CREDIT |
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| 17 | 17 | | Introduced By: Representatives Potter, and Voas |
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| 18 | 18 | | Date Introduced: March 22, 2023 |
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| 19 | 19 | | Referred To: House Finance |
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| 20 | 20 | | (Executive Office of Commerce) |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Section 42-64.20-5 of the General Laws in Chapter 42-64.20 entitled 1 |
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| 24 | 24 | | "Rebuild Rhode Island Tax Credit" is hereby amended to read as follows: 2 |
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| 25 | 25 | | 42-64.20-5. Tax credits. [Effective January 1, 2023.] 3 |
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| 26 | 26 | | (a) An applicant meeting the requirements of this chapter may be allowed a credit as set 4 |
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| 27 | 27 | | forth hereinafter against taxes imposed upon such person under applicable provisions of title 44 of 5 |
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| 28 | 28 | | the general laws for a qualified development project. 6 |
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| 29 | 29 | | (b) To be eligible as a qualified development project entitled to tax credits, an applicant’s 7 |
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| 30 | 30 | | chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the 8 |
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| 31 | 31 | | time of application, that: 9 |
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| 32 | 32 | | (1) The applicant has committed a capital investment or owner equity of not less than 10 |
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| 33 | 33 | | twenty percent (20%) of the total project cost; 11 |
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| 34 | 34 | | (2) There is a project financing gap in which after taking into account all available private 12 |
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| 35 | 35 | | and public funding sources, the project is not likely to be accomplished by private enterprise 13 |
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| 36 | 36 | | without the tax credits described in this chapter; and 14 |
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| 37 | 37 | | (3) The project fulfills the state’s policy and planning objectives and priorities in that: 15 |
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| 38 | 38 | | (i) The applicant will, at the discretion of the commerce corporation, obtain a tax 16 |
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| 39 | 39 | | stabilization agreement from the municipality in which the real estate project is located on such 17 |
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| 40 | 40 | | terms as the commerce corporation deems acceptable; 18 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC002081 - Page 2 of 10 |
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| 44 | 44 | | (ii) It (A) Is a commercial development consisting of at least 25,000 square feet occupied 1 |
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| 45 | 45 | | by at least one business employing at least 25 full-time employees after construction or such 2 |
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| 46 | 46 | | additional full-time employees as the commerce corporation may determine; (B) Is a multi-family 3 |
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| 47 | 47 | | residential development in a new, adaptive reuse, certified historic structure, or recognized 4 |
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| 48 | 48 | | historical structure consisting of at least 20,000 square feet and having at least 20 residential units 5 |
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| 49 | 49 | | in a hope community; or (C) Is a mixed-use development in a new, adaptive reuse, certified historic 6 |
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| 50 | 50 | | structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at 7 |
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| 51 | 51 | | least one business, subject to further definition through rules and regulations promulgated by the 8 |
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| 52 | 52 | | commerce corporation; and 9 |
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| 53 | 53 | | (iii) Involves a total project cost of not less than $5,000,000, except for a qualified 10 |
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| 54 | 54 | | development project located in a hope community or redevelopment area designated under § 45-11 |
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| 55 | 55 | | 32-4 in which event the commerce corporation shall have the discretion to modify the minimum 12 |
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| 56 | 56 | | project cost requirement. 13 |
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| 57 | 57 | | (4) For construction projects in excess of ten million dollars ($10,000,000), all construction 14 |
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| 58 | 58 | | workers shall be paid in accordance with the wages and benefits required pursuant to chapter 13 of 15 |
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| 59 | 59 | | title 37 with all contractors and subcontractors required to file certified payrolls on a monthly basis 16 |
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| 60 | 60 | | for all work completed in the preceding month on a uniform form prescribed by the director of 17 |
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| 61 | 61 | | labor and training. Failure to follow the requirements pursuant to chapter 13 of title 37 shall 18 |
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| 62 | 62 | | constitute a material violation and a material breach of the agreement with the state. The commerce 19 |
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| 63 | 63 | | corporation, in consultation with the director of labor and training and the tax administrator, shall 20 |
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| 64 | 64 | | promulgate such rules and regulations as are necessary to implement the enforcement of this 21 |
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| 65 | 65 | | subsection. 22 |
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| 66 | 66 | | (5) Subsection (b)(4) of this section shall not apply to any project that is the subject of an 23 |
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| 67 | 67 | | application for tax credits under this chapter that is submitted to the commerce corporation before 24 |
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| 68 | 68 | | January 1, 2023. 25 |
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| 69 | 69 | | (c) The commerce corporation shall develop separate, streamlined application processes 26 |
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| 70 | 70 | | for the issuance of rebuild RI tax credits for each of the following: 27 |
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| 71 | 71 | | (1) Qualified development projects that involve certified historic structures; 28 |
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| 72 | 72 | | (2) Qualified development projects that involve recognized historical structures; 29 |
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| 73 | 73 | | (3) Qualified development projects that involve at least one manufacturer; and 30 |
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| 74 | 74 | | (4) Qualified development projects that include affordable housing or workforce housing. 31 |
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| 75 | 75 | | (d) Applications made for a historic structure or recognized historic structure tax credit 32 |
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| 76 | 76 | | under chapter 33.6 of title 44 shall be considered for tax credits under this chapter. The division of 33 |
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| 77 | 77 | | taxation, at the expense of the commerce corporation, shall provide communications from the 34 |
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| 78 | 78 | | |
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| 79 | 79 | | |
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| 80 | 80 | | LC002081 - Page 3 of 10 |
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| 81 | 81 | | commerce corporation to those who have applied for and are in the queue awaiting the offer of tax 1 |
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| 82 | 82 | | credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the rebuild RI tax 2 |
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| 83 | 83 | | credit program. 3 |
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| 84 | 84 | | (e) Applicants (1) Who have received the notice referenced in subsection (d) above and 4 |
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| 85 | 85 | | who may be eligible for a tax credit pursuant to chapter 33.6 of title 44, (2) Whose application 5 |
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| 86 | 86 | | involves a certified historic structure or recognized historical structure, or (3) Whose project is 6 |
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| 87 | 87 | | occupied by at least one manufacturer shall be exempt from the requirements of subsections 7 |
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| 88 | 88 | | (b)(3)(ii) and (b)(3)(iii). The following procedure shall apply to such applicants: 8 |
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| 89 | 89 | | (i) The division of taxation shall remain responsible for determining the eligibility of an 9 |
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| 90 | 90 | | applicant for tax credits awarded under chapter 33.6 of title 44; 10 |
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| 91 | 91 | | (ii) The commerce corporation shall retain sole authority for determining the eligibility of 11 |
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| 92 | 92 | | an applicant for tax credits awarded under this chapter; 12 |
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| 93 | 93 | | (iii) The commerce corporation shall not award in excess of fifteen percent (15%) of the 13 |
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| 94 | 94 | | annual amount authorized in any fiscal year to applicants seeking tax credits pursuant to this 14 |
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| 95 | 95 | | subsection (e); and 15 |
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| 96 | 96 | | (iv) No Subject to subsection (b)(5) of this section, no tax credits shall be awarded under 16 |
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| 97 | 97 | | this chapter unless the commerce corporation receives confirmation from the department of labor 17 |
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| 98 | 98 | | and training that there has been compliance with the prevailing wage requirements set forth in 18 |
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| 99 | 99 | | subsection (b)(4) of this section. 19 |
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| 100 | 100 | | (f) Maximum project credit. 20 |
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| 101 | 101 | | (1) For qualified development projects, the maximum tax credit allowed under this chapter 21 |
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| 102 | 102 | | shall be the lesser of (i) Thirty percent (30%) of the total project cost; or (ii) The amount needed to 22 |
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| 103 | 103 | | close a project financing gap (after taking into account all other private and public funding sources 23 |
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| 104 | 104 | | available to the project), as determined by the commerce corporation. 24 |
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| 105 | 105 | | (2) The credit allowed pursuant to this chapter, inclusive of any sales and use tax 25 |
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| 106 | 106 | | exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000) 26 |
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| 107 | 107 | | for any qualified development project under this chapter; except as provided in subsection (f)(3) of 27 |
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| 108 | 108 | | this section; provided however, any qualified development project that exceeds the project cap upon 28 |
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| 109 | 109 | | passage of this act shall be deemed not to exceed the cap, shall not be reduced, nor shall it be further 29 |
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| 110 | 110 | | increased. No building or qualified development project to be completed in phases or in multiple 30 |
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| 111 | 111 | | projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000) for all 31 |
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| 112 | 112 | | phases or projects involved in the rehabilitation of the building. Provided, however, that for 32 |
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| 113 | 113 | | purposes of this subsection and no more than once in a given fiscal year, the commerce corporation 33 |
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| 114 | 114 | | may consider the development of land and buildings by a developer on the “I-195 land” as defined 34 |
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| 115 | 115 | | |
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| 116 | 116 | | |
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| 117 | 117 | | LC002081 - Page 4 of 10 |
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| 118 | 118 | | in § 42-64.24-3(6) as a separate, qualified development project from a qualified development 1 |
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| 119 | 119 | | project by a tenant or owner of a commercial condominium or similar legal interest including 2 |
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| 120 | 120 | | leasehold improvement, fit out, and capital investment. Such qualified development project by a 3 |
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| 121 | 121 | | tenant or owner of a commercial condominium or similar legal interest on the I-195 land may be 4 |
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| 122 | 122 | | exempted from subsection (f)(1)(i) of this section. 5 |
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| 123 | 123 | | (3) The credit allowed pursuant to this chapter, inclusive of any sales and use tax 6 |
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| 124 | 124 | | exemptions allowed pursuant to this chapter, shall not exceed twenty-five million dollars 7 |
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| 125 | 125 | | ($25,000,000) for the project for which the I-195 redevelopment district was authorized to enter 8 |
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| 126 | 126 | | into a purchase and sale agreement for parcels 42 and P4 on December 19, 2018, provided that 9 |
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| 127 | 127 | | project is approved for credits pursuant to this chapter by the commerce corporation. 10 |
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| 128 | 128 | | (g) Credits available under this chapter shall not exceed twenty percent (20%) of the project 11 |
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| 129 | 129 | | cost, provided, however, that the applicant shall be eligible for additional tax credits of not more 12 |
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| 130 | 130 | | than ten percent (10%) of the project cost, if the qualified development project meets any of the 13 |
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| 131 | 131 | | following criteria or other additional criteria determined by the commerce corporation from time 14 |
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| 132 | 132 | | to time in response to evolving economic or market conditions: 15 |
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| 133 | 133 | | (1) The project includes adaptive reuse or development of a recognized historical structure; 16 |
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| 134 | 134 | | (2) The project is undertaken by or for a targeted industry; 17 |
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| 135 | 135 | | (3) The project is located in a transit-oriented development area; 18 |
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| 136 | 136 | | (4) The project includes residential development of which at least twenty percent (20%) of 19 |
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| 137 | 137 | | the residential units are designated as affordable housing or workforce housing; 20 |
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| 138 | 138 | | (5) The project includes the adaptive reuse of property subject to the requirements of the 21 |
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| 139 | 139 | | industrial property remediation and reuse act, § 23-19.14-1 et seq.; or 22 |
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| 140 | 140 | | (6) The project includes commercial facilities constructed in accordance with the minimum 23 |
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| 141 | 141 | | environmental and sustainability standards, as certified by the commerce corporation pursuant to 24 |
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| 142 | 142 | | Leadership in Energy and Environmental Design or other equivalent standards. 25 |
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| 143 | 143 | | (h) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter, 26 |
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| 144 | 144 | | inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed 27 |
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| 145 | 145 | | two hundred ten million dollars ($210,000,000), excluding any tax credits allowed pursuant to 28 |
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| 146 | 146 | | subsection (f)(3) of this section. 29 |
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| 147 | 147 | | (i) Tax credits shall not be allowed under this chapter prior to the taxable year in which the 30 |
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| 148 | 148 | | project is placed in service. 31 |
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| 149 | 149 | | (j) The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer 32 |
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| 150 | 150 | | in up to five, annual increments; no more than thirty percent (30%) and no less than fifteen percent 33 |
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| 151 | 151 | | (15%) of the total credits allowed to a taxpayer under this chapter may be allowable for any taxable 34 |
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| 152 | 152 | | |
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| 153 | 153 | | |
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| 154 | 154 | | LC002081 - Page 5 of 10 |
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| 155 | 155 | | year. 1 |
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| 156 | 156 | | (k) If the portion of the tax credit allowed under this chapter exceeds the taxpayer’s total 2 |
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| 157 | 157 | | tax liability for the year in which the relevant portion of the credit is allowed, the amount that 3 |
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| 158 | 158 | | exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for 4 |
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| 159 | 159 | | the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed 5 |
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| 160 | 160 | | to a partnership, a limited-liability company taxed as a partnership, or multiple owners of property 6 |
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| 161 | 161 | | shall be passed through to the persons designated as partners, members, or owners respectively pro 7 |
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| 162 | 162 | | rata or pursuant to an executed agreement among persons designated as partners, members, or 8 |
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| 163 | 163 | | owners documenting an alternate distribution method without regard to their sharing of other tax 9 |
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| 164 | 164 | | or economic attributes of such entity. 10 |
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| 165 | 165 | | (l) The commerce corporation, in consultation with the division of taxation, shall establish, 11 |
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| 166 | 166 | | by regulation, the process for the assignment, transfer, or conveyance of tax credits. 12 |
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| 167 | 167 | | (m) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer 13 |
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| 168 | 168 | | for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from 14 |
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| 169 | 169 | | taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller’s tax calculation 15 |
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| 170 | 170 | | for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds, 16 |
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| 171 | 171 | | without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a 17 |
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| 172 | 172 | | natural person, the seller’s tax calculation under chapter 11, 13, 14, or 17 of title 44, as applicable, 18 |
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| 173 | 173 | | for the year of revocation, or adjustment, shall be increased by including the total amount of the 19 |
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| 174 | 174 | | sales proceeds without proration. 20 |
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| 175 | 175 | | (n) The tax credit allowed under this chapter may be used as a credit against corporate 21 |
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| 176 | 176 | | income taxes imposed under chapter 11, 13, 14, or 17, of title 44, or may be used as a credit against 22 |
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| 177 | 177 | | personal income taxes imposed under chapter 30 of title 44 for owners of pass-through entities such 23 |
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| 178 | 178 | | as a partnership, a limited-liability company taxed as a partnership, or multiple owners of property. 24 |
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| 179 | 179 | | (o) In the case of a corporation, this credit is only allowed against the tax of a corporation 25 |
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| 180 | 180 | | included in a consolidated return that qualifies for the credit and not against the tax of other 26 |
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| 181 | 181 | | corporations that may join in the filing of a consolidated tax return. 27 |
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| 182 | 182 | | (p) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem 28 |
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| 183 | 183 | | this credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division 29 |
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| 184 | 184 | | of taxation, in consultation with the commerce corporation, shall establish by regulation a 30 |
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| 185 | 185 | | redemption process for tax credits. 31 |
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| 186 | 186 | | (q) Projects eligible to receive a tax credit under this chapter may, at the discretion of the 32 |
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| 187 | 187 | | commerce corporation, be exempt from sales and use taxes imposed on the purchase of the 33 |
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| 188 | 188 | | following classes of personal property only to the extent utilized directly and exclusively in the 34 |
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| 189 | 189 | | |
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| 190 | 190 | | |
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| 191 | 191 | | LC002081 - Page 6 of 10 |
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| 192 | 192 | | project: (1) Furniture, fixtures, and equipment, except automobiles, trucks, or other motor vehicles; 1 |
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| 193 | 193 | | or (2) Other materials, including construction materials and supplies, that are depreciable and have 2 |
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| 194 | 194 | | a useful life of one year or more and are essential to the project. 3 |
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| 195 | 195 | | (r) The commerce corporation shall promulgate rules and regulations for the administration 4 |
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| 196 | 196 | | and certification of additional tax credit under subsection (g), including criteria for the eligibility, 5 |
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| 197 | 197 | | evaluation, prioritization, and approval of projects that qualify for such additional tax credit. 6 |
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| 198 | 198 | | (s) The commerce corporation shall not have any obligation to make any award or grant 7 |
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| 199 | 199 | | any benefits under this chapter. 8 |
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| 200 | 200 | | SECTION 2. Section 44-33.6-3 of the General Laws in Chapter 44-33.6 entitled "Historic 9 |
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| 201 | 201 | | Preservation Tax Credits 2013" is hereby amended to read as follows: 10 |
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| 202 | 202 | | 44-33.6-3. Tax credit. [Effective January 1, 2023.] 11 |
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| 203 | 203 | | (a) Subject to the maximum credit provisions set forth in subsections (c) and (d) below, 12 |
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| 204 | 204 | | any person, firm, partnership, trust, estate, limited liability company, corporation (whether for 13 |
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| 205 | 205 | | profit or nonprofit) or other business entity that incurs qualified rehabilitation expenditures for the 14 |
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| 206 | 206 | | substantial rehabilitation of a certified historic structure, provided the rehabilitation meets standards 15 |
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| 207 | 207 | | consistent with the standards of the Secretary of the United States Department of the Interior for 16 |
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| 208 | 208 | | rehabilitation as certified by the commission and said person, firm, partnership, trust, estate, limited 17 |
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| 209 | 209 | | liability company, corporation or other business entity is not a social club as defined in § 44-33.6-18 |
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| 210 | 210 | | 2, shall be entitled to a credit against the taxes imposed on such person or entity pursuant to chapter 19 |
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| 211 | 211 | | 11, 12, 13, 14, 17, or 30 of this title in an amount equal to the following: 20 |
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| 212 | 212 | | (1) Twenty percent (20%) of the qualified rehabilitation expenditures; or 21 |
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| 213 | 213 | | (2) Twenty-five percent (25%) of the qualified rehabilitation expenditures provided that 22 |
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| 214 | 214 | | either: 23 |
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| 215 | 215 | | (i) At least twenty-five percent (25%) of the total rentable area of the certified historic 24 |
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| 216 | 216 | | structure will be made available for a trade or business; or 25 |
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| 217 | 217 | | (ii) The entire rentable area located on the first floor of the certified historic structure will 26 |
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| 218 | 218 | | be made available for a trade or business. 27 |
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| 219 | 219 | | (b) Tax credits allowed pursuant to this chapter shall be allowed for the taxable year in 28 |
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| 220 | 220 | | which such certified historic structure or an identifiable portion of the structure is placed in service 29 |
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| 221 | 221 | | provided that the substantial rehabilitation test is met for such year. 30 |
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| 222 | 222 | | (c) Maximum project credit. The credit allowed pursuant to this chapter shall not exceed 31 |
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| 223 | 223 | | five million dollars ($5,000,000) for any certified rehabilitation project under this chapter. No 32 |
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| 224 | 224 | | building to be completed in phases or in multiple projects shall exceed the maximum project credit 33 |
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| 225 | 225 | | of five million dollars ($5,000,000) for all phases or projects involved in the rehabilitation of such 34 |
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| 226 | 226 | | |
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| 227 | 227 | | |
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| 228 | 228 | | LC002081 - Page 7 of 10 |
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| 229 | 229 | | building. 1 |
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| 230 | 230 | | (d) Maximum aggregate credits. The aggregate credits authorized to be reserved pursuant 2 |
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| 231 | 231 | | to this chapter shall not exceed sums estimated to be available in the historic preservation tax credit 3 |
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| 232 | 232 | | trust fund pursuant to this chapter. 4 |
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| 233 | 233 | | (e) Subject to the exception provided in subsection (g) of this section, if the amount of the 5 |
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| 234 | 234 | | tax credit exceeds the taxpayer’s total tax liability for the year in which the substantially 6 |
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| 235 | 235 | | rehabilitated property is placed in service, the amount that exceeds the taxpayer’s tax liability may 7 |
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| 236 | 236 | | be carried forward for credit against the taxes imposed for the succeeding ten (10) years, or until 8 |
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| 237 | 237 | | the full credit is used, whichever occurs first for the tax credits. Credits allowed to a partnership, a 9 |
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| 238 | 238 | | limited liability company taxed as a partnership, or multiple owners of property shall be passed 10 |
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| 239 | 239 | | through to the persons designated as partners, members, or owners respectively pro rata or pursuant 11 |
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| 240 | 240 | | to an executed agreement among such persons designated as partners, members, or owners 12 |
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| 241 | 241 | | documenting an alternate distribution method without regard to their sharing of other tax or 13 |
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| 242 | 242 | | economic attributes of such entity. Credits may be allocated to partners, members, or owners that 14 |
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| 243 | 243 | | are exempt from taxation under section 501(c)(3), section (c)(4) or section 501(c)(6) of the U.S. 15 |
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| 244 | 244 | | Code and these partners, members, or owners must be treated as taxpayers for purposes of this 16 |
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| 245 | 245 | | section. 17 |
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| 246 | 246 | | (f) If the taxpayer has not claimed the tax credits in whole or part, taxpayers eligible for 18 |
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| 247 | 247 | | the tax credits may assign, transfer, or convey the credits, in whole or in part, by sale or otherwise 19 |
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| 248 | 248 | | to any individual or entity, including, but not limited to, condominium owners in the event the 20 |
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| 249 | 249 | | certified historic structure is converted into condominiums and assignees of the credits that have 21 |
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| 250 | 250 | | not claimed the tax credits in whole or part may assign, transfer, or convey the credits, in whole or 22 |
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| 251 | 251 | | in part, by sale or otherwise to any individual or entity. The assignee of the tax credits may use 23 |
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| 252 | 252 | | acquired credits to offset up to one hundred percent (100%) of the tax liabilities otherwise imposed 24 |
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| 253 | 253 | | pursuant to chapter 11, 12, 13 (other than the tax imposed under § 44-13-13), 14, 17, or 30 of this 25 |
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| 254 | 254 | | title. The assignee may apply the tax credit against taxes imposed on the assignee until the end of 26 |
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| 255 | 255 | | the tenth calendar year after the year in which the substantially rehabilitated property is placed in 27 |
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| 256 | 256 | | service or until the full credit assigned is used, whichever occurs first. Fiscal year assignees may 28 |
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| 257 | 257 | | claim the credit until the expiration of the fiscal year that ends within the tenth year after the year 29 |
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| 258 | 258 | | in which the substantially rehabilitated property is placed in service. The assignor shall perfect the 30 |
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| 259 | 259 | | transfer by notifying the state of Rhode Island division of taxation, in writing, within thirty (30) 31 |
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| 260 | 260 | | calendar days following the effective date of the transfer and shall provide any information as may 32 |
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| 261 | 261 | | be required by the division of taxation to administer and carry out the provisions of this section. 33 |
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| 262 | 262 | | For purposes of this chapter, any assignment or sales proceeds received by the taxpayer for 34 |
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| 263 | 263 | | |
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| 264 | 264 | | |
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| 265 | 265 | | LC002081 - Page 8 of 10 |
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| 266 | 266 | | its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from this 1 |
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| 267 | 267 | | title. If a tax credit is subsequently recaptured under this chapter, revoked, or adjusted, the seller’s 2 |
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| 268 | 268 | | tax calculation for the year of revocation, recapture, or adjustment shall be increased by the total 3 |
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| 269 | 269 | | amount of the sales proceeds, without proration, as a modification under chapter 30 of this title. In 4 |
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| 270 | 270 | | the event that the seller is not a natural person, the seller’s tax calculation under chapter 11, 12, 13 5 |
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| 271 | 271 | | (other than with respect to the tax imposed under § 44-13-13), 14, 17, or 30 of this title, as 6 |
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| 272 | 272 | | applicable, for the year of revocation, recapture, or adjustment, shall be increased by including the 7 |
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| 273 | 273 | | total amount of the sales proceeds without proration. 8 |
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| 274 | 274 | | (g) Credits allowed to partners, members, or owners that are exempt from taxation under 9 |
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| 275 | 275 | | section 501(c)(3), section (c)(4) or section 501(c)(6) of the U.S. Code, and only said credits, shall 10 |
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| 276 | 276 | | be fully refundable. 11 |
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| 277 | 277 | | (h) Substantial rehabilitation of property that either: 12 |
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| 278 | 278 | | (1) Is exempt from real property tax; 13 |
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| 279 | 279 | | (2) Is a social club; or 14 |
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| 280 | 280 | | (3) Consists of a single-family home or a property that contains less than three (3) 15 |
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| 281 | 281 | | residential apartments or condominiums shall be ineligible for the tax credits authorized under this 16 |
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| 282 | 282 | | chapter; provided, however, a scattered site development with five (5) or more residential units in 17 |
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| 283 | 283 | | the aggregate (which may include single-family homes) shall be eligible for tax credit. In the event 18 |
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| 284 | 284 | | a certified historic structure undergoes a substantial rehabilitation pursuant to this chapter and 19 |
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| 285 | 285 | | within twenty-four (24) months after issuance of a certificate of completed work the property 20 |
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| 286 | 286 | | becomes exempt from real property tax, the taxpayer’s tax for the year shall be increased by the 21 |
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| 287 | 287 | | total amount of credit actually used against the tax. 22 |
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| 288 | 288 | | (i) In the case of a corporation, this credit is only allowed against the tax of a corporation 23 |
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| 289 | 289 | | included in a consolidated return that qualifies for the credit and not against the tax of other 24 |
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| 290 | 290 | | corporations that may join in the filing of a consolidated tax return. 25 |
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| 291 | 291 | | (j) For construction projects in excess of ten million dollars ($10,000,000), all construction 26 |
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| 292 | 292 | | workers shall be paid in accordance with the wages and benefits required pursuant to chapter 13 of 27 |
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| 293 | 293 | | title 37 and all contractors and subcontractors shall file certified payrolls on a monthly basis for all 28 |
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| 294 | 294 | | work completed in the preceding month on a uniform form prescribed by the director of labor and 29 |
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| 295 | 295 | | training. Failure to follow the requirements pursuant to chapter 13 of title 37 shall constitute a 30 |
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| 296 | 296 | | material violation and a material breach of the agreement with the state. The tax administrator, in 31 |
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| 297 | 297 | | consultation with the director of labor and training, shall promulgate such rules and regulations as 32 |
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| 298 | 298 | | are necessary to implement the enforcement of this subsection. 33 |
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| 299 | 299 | | (k) Subsection (j) of this section shall not apply to any project that is the subject of an 34 |
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| 300 | 300 | | |
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| 301 | 301 | | |
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| 302 | 302 | | LC002081 - Page 9 of 10 |
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| 303 | 303 | | application for tax credits under this chapter that is submitted to the division of taxation before 1 |
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| 304 | 304 | | January 1, 2023. 2 |
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| 305 | 305 | | (k) No (l) Subject to the exception provided in subsection (k) of this section, no tax credits 3 |
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| 306 | 306 | | shall be awarded under this chapter unless the division of taxation receives confirmation from the 4 |
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| 307 | 307 | | department of labor and training that there has been compliance with the prevailing wage 5 |
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| 308 | 308 | | requirements set forth in subsection (j) of this section. 6 |
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| 309 | 309 | | SECTION 3. This act shall take effect upon passage. 7 |
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| 310 | 310 | | ======== |
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| 311 | 311 | | LC002081 |
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| 312 | 312 | | ======== |
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| 313 | 313 | | |
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| 314 | 314 | | |
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| 315 | 315 | | LC002081 - Page 10 of 10 |
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| 316 | 316 | | EXPLANATION |
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| 317 | 317 | | BY THE LEGISLATIVE COUNCIL |
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| 318 | 318 | | OF |
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| 319 | 319 | | A N A C T |
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| 320 | 320 | | RELATING TO STATE AFFAIRS AND GOVERNMENT -- REBUILD RHODE ISLAND |
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| 321 | 321 | | TAX CREDIT |
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| 322 | 322 | | *** |
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| 323 | 323 | | This act would provide that prevailing wage requirements for rebuild Rhode Island and 1 |
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| 324 | 324 | | historic preservation tax credits do not apply to project applications submitted prior to January 1, 2 |
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| 325 | 325 | | 2023. 3 |
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| 326 | 326 | | This act would take effect upon passage. 4 |
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| 327 | 327 | | ======== |
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| 328 | 328 | | LC002081 |
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| 329 | 329 | | ======== |
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