Rules and Regulations for the Rebuild Rhode Island Tax Credit Program

280-RICR-20-20-9 ACTIVE RULE

9.1 Jointly Promulgated Regulation

A. The Rhode Island Commerce Corporation and the Rhode Island Division of Taxation jointly promulgate 870-RICR-30-00-3, "Rules and Regulations for the Rebuild Rhode Island Tax Credit.”

B. This Part hereby adopts and references 870-RICR-30-00-3.

Title 280 Department of Revenue
Chapter 20 Division of Taxation
Subchapter 20 Tax Credits/Deductions
Part 9 Rules and Regulations for the Rebuild Rhode Island Tax Credit Program
Type of Filing Amendment
Regulation Status Active
Effective 11/14/2018

Regulation Authority :

R.I. Gen. Laws Sections 42-64.20-1 et seq.
R.I. Gen. Laws § 44-1-4

Purpose and Reason :

The Rules implement the newly-enacted Rebuild Rhode Island Tax Credit, R.I. Gen. Laws § 42-64.20-1 et seq., which can provide up to $15 million in tax credits, to be allocated over five years, to a real estate development project. The statute also permits the Board of the Rhode Island Commerce Corporation to approve a sales tax exemption for personal property utilized directly in a project that is eligible for a tax credit. To qualify, a project must be at least $5 million in total size and the developer must have 20% equity in the project. If it is a commercial project, it must be at least 25,000 square feet and have at least 25 full-time jobs upon completion. If it is residential, it must be at least 20,000 square feet and have 20 units. The Corporation can relax the $5 million project cost threshold for projects in communities with the highest poverty rates (today, those “Hope Communities” are Providence, Pawtucket, Central Falls, Woonsocket, and West Warwick) or certain designated redevelopment areas. In all cases, the amount of the credit can never exceed 30% of the project cost and can never exceed the project’s financing gap. A financing gap is the amount of the total project cost that the developer cannot raise through normally available channels or the amount of money necessary to gain a competitive advantage over a viable out-of-state location for the project.