Establishes the Rhode Island low-income housing improvement tax credit program providing tax credits for a period of five (5) years to applicants that are competitively selected and that meet the requirements of this chapter.
Impact
The implementation of the Low-Income Housing Improvement Tax Credit would directly impact state tax laws by creating a new framework for tax credits directed towards housing improvements. Property owners with qualified low-income projects will benefit from tax credits against their tax liabilities, which will not only incentivize the enhancement of existing affordable housing but also potentially lead to increased availability of safe and improved living conditions for low-income residents. The program is capped at a total of ten million dollars in tax credits per fiscal year, ensuring a managed approach to fiscal impact while encouraging housing investments.
Summary
Bill S3028, titled the Low-Income Housing Improvement Tax Credit Act, aims to establish a tax credit program in Rhode Island to stimulate improvements to affordable housing. The initiative is designed to address the state's significant housing challenges by providing tax credits for a period of five years to property owners who are competitively selected and meet specific project requirements. The bill emphasizes the importance of safety and better living conditions for low-income families and is seen as a response to the growing need for affordable housing solutions.
Contention
Notable points of contention surrounding S3028 may arise from various stakeholders in the housing and real estate sectors. While proponents argue that the tax credit program is a necessary step toward improving living conditions for low-income families, critics may express concerns about the adequacy of funds allocated and the effectiveness of the program in genuinely increasing affordable housing stock. Additionally, discussions may also focus on the competitive selection process for the tax credits and how that could impact which projects receive funding and ultimately improve housing in Rhode Island.