Allows real property owner a one-time non-refundable tax credit for the actual costs of connecting a single family or multi-family dwelling to a municipal sewer system credited to the owner's personal or corporate income tax.
Summary
S0186 would create a new Rhode Island income tax credit for owners of real property with a single-family or multi-family dwelling who pay to connect that property to a municipal sewer system. The credit would equal the actual cost of the sewer connection installation and could be claimed only once for a given property. It is structured as a non-refundable credit, meaning it can reduce tax liability but would not generate a refund if the credit exceeds the tax owed.
The bill also specifies how the credit is applied depending on the owner’s filing status. If the costs were incurred by a corporation, the credit would be claimed against corporate income tax; otherwise, it would be claimed against personal income tax. The bill prohibits both a corporate and personal credit from being claimed for the same installation costs at a single location, and it would take effect immediately upon passage.
Impact
This bill would amend Rhode Island’s personal income tax law in Chapter 44-30 by adding a new section authorizing a one-time non-refundable tax credit for sewer connection costs. It would directly affect property owners who connect homes to municipal sewer systems, and indirectly affect taxpayers who would use the credit to offset state income tax liability. Because the credit is non-refundable and limited to actual connection costs, its fiscal impact would depend on how many eligible property owners claim it and the size of those installation expenses.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available materials. Based on the bill text alone, the measure appears to be a targeted tax incentive intended to encourage sewer hookups, which generally suggests a practical, infrastructure-oriented policy approach rather than a controversial broad tax change.
Contention
The main policy issues likely concern the cost of the credit to state revenue, whether a non-refundable credit is sufficient to encourage sewer connections, and how the benefit should be allocated between individual and corporate owners. Another possible point of discussion is equity, since the credit is limited to property owners who can afford the upfront installation costs and can use the credit against tax liability. No specific opponents or supporters are identified in the provided record.