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| 4 | 4 | | |
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| 5 | 5 | | 2023 -- S 0249 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001661 |
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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 TAXATION -- HISTORIC PRESERVATION TAX CRE DITS |
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| 16 | 16 | | Introduced By: Senators Euer, and DiPalma |
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| 17 | 17 | | Date Introduced: February 16, 2023 |
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| 18 | 18 | | Referred To: Senate Finance |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Section 44-33.6-7 of the General Laws in Chapter 44-33.6 entitled "Historic 1 |
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| 23 | 23 | | Preservation Tax Credits 2013" is hereby amended to read as follows: 2 |
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| 24 | 24 | | 44-33.6-7. Timing and reapplication. 3 |
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| 25 | 25 | | (a) Taxpayers shall have twelve (12) months from the approval of Part 2 application to 4 |
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| 26 | 26 | | commence substantial construction activities related to the subject substantial rehabilitation. Upon 5 |
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| 27 | 27 | | commencing substantial construction activities, the taxpayer shall submit an affidavit of 6 |
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| 28 | 28 | | commencement of substantial construction to the commission, together with evidence of the 7 |
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| 29 | 29 | | requirements having been satisfied. Furthermore, after commencement of substantial construction 8 |
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| 30 | 30 | | activities, no project shall remain idle prior to completion for a period of time exceeding six (6) 9 |
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| 31 | 31 | | months. In the event that a taxpayer does not commence substantial construction activities within 10 |
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| 32 | 32 | | twelve (12) months from the approval of Part 2 application, or in the event that a project remains 11 |
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| 33 | 33 | | idle prior to completion for a period of time exceeding six (6) months, the subject taxpayer shall 12 |
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| 34 | 34 | | forfeit all fees paid prior to such date and its then-current contract for tax credits shall be deemed 13 |
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| 35 | 35 | | null and void, and shall terminate without need for further action or documentation. Upon any such 14 |
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| 36 | 36 | | forfeiture and termination, a taxpayer may re-apply for tax credits pursuant to this chapter; 15 |
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| 37 | 37 | | however, notwithstanding anything contained herein to the contrary, one hundred percent (100%) 16 |
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| 38 | 38 | | of the fees required shall be paid upon reapplication and the fees shall be non-refundable. 17 |
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| 39 | 39 | | Additionally, any taxpayer reapplying for tax credits pursuant to this section shall be required to 18 |
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| 40 | 40 | | submit evidence with its application establishing the reason for delay in commencement or the 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC001661 - Page 2 of 3 |
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| 44 | 44 | | project sitting idle, as the case may be, and provide evidence, reasonably satisfactory to the 1 |
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| 45 | 45 | | commission, that the condition or event causing same has been resolved. All taxpayers shall submit 2 |
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| 46 | 46 | | a reasonably detailed project timeline to the commission together with the Part 2 application. The 3 |
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| 47 | 47 | | provisions of this section shall be further detailed and incorporated into the form of contract for tax 4 |
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| 48 | 48 | | credits used in connection with this chapter. 5 |
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| 49 | 49 | | (b) Notwithstanding any other provision of law to the contrary, projects that have been 6 |
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| 50 | 50 | | approved for historic preservation tax credits and have been funded through the cultural arts and 7 |
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| 51 | 51 | | the economy grant program, as enacted in P.L. 2014, ch. 145, and whose contract for tax credits 8 |
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| 52 | 52 | | would expire on December 31, 2019, are not subject to the provisions of this section and shall 9 |
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| 53 | 53 | | remain in full force and effect until December 31, 2022 Notwithstanding any other law to the 10 |
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| 54 | 54 | | contrary, including, but not limited to ยง 44-33.6-11, projects that have been previously approved 11 |
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| 55 | 55 | | for historic tax credits and have been funded through the cultural arts and the economy grant 12 |
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| 56 | 56 | | program, as enacted in P.L. 2014, Ch. 145, shall be eligible for said tax credits. Any tax credits 13 |
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| 57 | 57 | | applicable herein shall not exceed the amount of three million dollars ($3,000,000). Eligibility for 14 |
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| 58 | 58 | | historic tax credits under this section shall remain in full force and effect until June 30, 2026. 15 |
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| 59 | 59 | | SECTION 2. This act shall take effect upon passage. 16 |
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| 60 | 60 | | ======== |
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| 61 | 61 | | LC001661 |
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| 63 | 63 | | |
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| 64 | 64 | | |
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| 65 | 65 | | LC001661 - Page 3 of 3 |
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| 66 | 66 | | EXPLANATION |
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| 67 | 67 | | BY THE LEGISLATIVE COUNCIL |
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| 68 | 68 | | OF |
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| 69 | 69 | | A N A C T |
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| 70 | 70 | | RELATING TO TAXATION -- HISTORIC PRESERVATION TAX CREDITS |
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| 71 | 71 | | *** |
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| 72 | 72 | | This act would provide that projects previously approved for historic tax credits funded 1 |
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| 73 | 73 | | through the cultural arts and the economy grant program would continue to qualify for tax credits 2 |
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| 74 | 74 | | until June 30, 2026. 3 |
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| 75 | 75 | | This act would take effect upon passage. 4 |
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| 76 | 76 | | ======== |
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| 77 | 77 | | LC001661 |
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