Rhode Island 2026 Regular Session

Rhode Island Senate Bill S3151

Introduced

3/27/26

Refer

3/27/26

Caption

Increases historic tax credit to 30%, and up to 35%, depending on the amount of rental area available for multi-family housing, affordable rental units and units sold as affordable housing.

Impact

The bill is expected to enhance participation in historic redevelopment projects by providing more substantial financial incentives for developers. The increase in tax credits is designed to promote greater investment in the rehabilitation of certified historic structures, ultimately boosting housing supply and affordability in urban areas. Furthermore, it aligns with state policies aimed at preserving Rhode Island's historical assets while addressing the contemporary demand for affordable housing solutions.

Summary

S3151 is a legislative proposal aimed at revising the tax incentives for historic preservation projects in Rhode Island. The bill proposes to increase the historic tax credit from 20% to 30% for qualifying rehabilitation expenditures, with the potential for this increase to rise to 35% for projects that convert at least 80% of their total rental area to multi-family housing with a portion designated as affordable rental units or sold as affordable housing. The legislation targets the need for sustainable rehabilitation practices that align with the state’s housing needs and economic development strategies.

Contention

However, notable points of contention may arise regarding the balance between incentivizing development and ensuring that the provisions do not overshadow community needs or environmental considerations. Critics may argue that financial incentives should be coupled with stricter regulations ensuring that developments genuinely address the local housing crisis without compromising the integrity of historic sites. Additionally, lawmakers may have to debate the fiscal implications of increased tax credits on the state's budget, as substantial credits may result in significant reductions to state tax revenues.

Companion Bills

No companion bills found.

Previously Filed As

RI S1105

Requires the town of Tiverton to require a minimum number of affordable housing units if there is less than ten percent (10%) of affordable housing in the town.

RI H6215

Requires the town of Tiverton to require a minimum number of affordable housing units if there is less than ten percent (10%) of affordable housing in the town.

RI H5402

Creates business tax credit for, eliminates sale tax on, eliminates income tax on the sale of, and creates a 10 year tax valuation freeze on newly renovated affordable housing.

RI S0202

Grants a right of first offer to qualified nonprofits for the purchase of certain multi-family residential properties at market prices, within a reasonable period of time to promote the creation and preservation of affordable rental housing.

RI S1011

Amends the definition of affordable housing to create separate categories for housing using private or state financing as opposed to financing from the federal government.

RI H5956

Amends the definition of affordable housing to create separate categories for housing using private or state financing as opposed to financing from the federal government.

RI S0122

Establishes a program operated by the Rhode Island housing and mortgage finance corporation called the "housing land bank" to create affordable housing in RI with the authority to buy, receive, and hold real property for housing development.

RI S0940

Amends sections of law relative to historic tax credits including increasing the maximum project credit and implementing requirements relative to following prevailing wage requirements..

RI S0717

Requires that affordable housing would be provided for with some developments.

RI H6175