RELATING TO TAXATION -- HISTORIC PRESERVATION TAX CREDITS 2013
Impact
The bill significantly affects state laws regarding tax credits associated with historic preservation projects. By adjusting the parameters for tax credits, it seeks to encourage more investors to engage in the rehabilitation of historic structures, ultimately aiming to enhance economic development and job creation in Rhode Island. Consequently, it could lead to an increase in affordable housing availability through the rehabilitation of older buildings into modern living spaces while maintaining their historical significance.
Summary
House Bill 8408 aims to increase the historic tax credit in Rhode Island to 30% for qualified rehabilitation expenditures, and potentially up to 35% under specific conditions. This amendment requires that at least 80% of the total rental area of a certified historic structure must be made available for multi-family housing. If 20% of those rental units are designated as affordable or 10% of the units are sold as affordable housing, the credit can reach the higher percentage. The bill includes provisions that promote the economic revitalization of historical properties by incentivizing their rehabilitation for modern use.
Contention
While the bill has received support for its provisions aimed at historic preservation and affordable housing, some points of contention may arise regarding the definition of 'affordable housing' and the potential impact on existing neighborhoods. Concerns could be raised about gentrification and the displacement of current residents as properties are rehabilitated and potentially converted to more market-rate units, even if they are designated as affordable under the terms of this bill. Additionally, stakeholders may debate the sufficiency of outlined metrics and assessments to ensure that these housing provisions lead to genuinely accessible units.
Amends sections of law relative to historic tax credits including increasing the maximum project credit and implementing requirements relative to following prevailing wage requirements..
Allows the town council of Coventry to make exemptions from taxation on real and personal property that has undergone environmental remediation. This act is subject to conditions as provided in this section.
Allows the town council of Coventry to make exemptions from taxation on real and personal property that has undergone environmental remediation. This act is subject to conditions as provided in this section.
Individual income tax: credit; state historic preservation tax credit; eliminate. Amends secs. 266a & 676 of 1967 PA 281 (MCL 206.266a & 206.676). TIE BAR WITH: SB 0631'25