Rules and Regulations for the Tax Stabilization Incentive Program
870-RICR-30-00-2 INACTIVE RULE
|Tax Credits and Exemptions
|Rules and Regulations for the Tax Stabilization Incentive Program
|Type of Filing
|11/25/2015 to 11/25/2015
Purpose and Reason:
The Rules implement the newly-enacted Tax Stabilization Incentive act, which is designed to encourage municipalities to enter into tax stabilization agreements (“TSAs”) for qualifying development projects. Under the act, a municipality can receive an award from the Corporation of up to 10% of the tax revenue relinquished as a result of the TSA. The development project for which the TSA is granted must meet certain requirements in order for the municipality to qualify for an incentive. Those requirements vary depending on whether the municipality in which the project is located is a “Hope Community” (communities with the five highest poverty rates). In a Hope Community, a project must meet the following criteria: create 25 new full-time jobs and involve a capital investment of $5 million or more; or create at least 20 units of residential housing. In other communities, a project must meet the following criteria: create 50 new full-time jobs and involve a capital investment of $10 million or more; or create at least 20 units of residential housing, at least 20% of which meet certain affordability requirements; or be an adaptive reuse of an historic structure. Additionally, in all communities, the TSA must have a term of at least 12 years for the municipality to qualify for an incentive. In response to a comment, the text of Rule 3 has changed from the version published in the register to provide greater specificity to the board process described in that provision.