Program has demonstrated its return on investment while strengthening communities, neighborhoods and municipal tax bases
After being closed to new applicants since 2008, the Rhode Island General Assembly reinstated a reformed State Historic Tax Credit last June using $34.5MM in previously budgeted, but abandoned credits. The new tax credit program allocates credits of between 20% and 25% based on the type of project.
On August 1st, the first day applications for the new program could be accepted, the private sector responded and developers proposed new investments of approximately $250MM in rehab projects throughout the state that would amount to $54MM in tax credits ($20MM more than was available), so state officials held a lottery.
As a result of the lottery, 32 projects were tentatively allocated credits. Through August 14th, 45 applications had been received, meaning that 13 projects had to be placed on a waiting list.
Grow Smart will work vigorously this year to propose and advocate for legislation to extend the Historic Tax Credit, a proven public private partnership for turning liabilities into assets and improving our communities in the process. Stay tuned for more details.