Senate Bill #980 (2019)

AN ACT RELATING TO TAXATION -- HISTORIC PRESERVATION TAX CREDITS

Extends historic tax credits for 3 years until December 31, 2022, projects which have been funded through the Cultural Arts and the Economy Grant program, as enacted in chapter 145 of the 2014 Pub. L., and which would have expired on December 31, 2019.

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Changes since original draft

  • 2019 – S 0980
  • 2019 – S 0980 SUBSTITUTE A
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  • LC002727
  • LC002727/SUB A/2
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  • S T A T E O F R H O D E I S L A N D
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2019
  • ____________
  • A N A C T
  • S TATE OF RHODE IS L AND
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2019
  • ____________
  • A N A C T
  • RELATING TO TAXATION – HISTORIC PRESERVATION TAX CREDITS
  • Introduced By: Senators Euer, and DiPalma
  • Date Introduced: June 13, 2019
  • Referred To: Senate Finance
  • It is enacted by the General Assembly as follows:
  • SECTION 1. Section 44-33.6-7 of the General Laws in Chapter 44-33.6 entitled "Historic Preservation Tax Credits 2013" is hereby amended to read as follows:
  • It is enacted by the GeneralAssembly as follows:
  • SECTION 1. Sections 44-33.6-7 and 44-3.6-11 of the General Laws in Chapter 44-33.6 entitled "Historic Preservation Tax Credits 2013"are hereby amended to read as follows:
  • 44-33.6-7. Timing and reapplication.
  • (a) Taxpayers shall have twelve (12) months from the approval of Part 2 application to commence substantial construction activities related to the subject substantial rehabilitation. Upon commencing substantial construction activities, the taxpayer shall submit an affidavit of commencement of substantial construction to the commission, together with evidence of such requirements having been satisfied. Furthermore, after commencement of substantial construction activities, no project shall remain idle prior to completion for a period of time exceeding six (6) months. In the event that a taxpayer does not commence substantial construction activities within twelve (12) months from the approval of Part 2 application, or in the event that a project remains idle prior to completion for a period of time exceeding six (6) months, the subject taxpayer shall forfeit all fees paid prior to such date and its then-current contract for tax credits shall be deemed null and void, and shall terminate without need for further action or documentation. Upon any such forfeiture and termination, a taxpayer may re-apply for tax credits pursuant to this chapter, however, notwithstanding anything contained herein to the contrary, one hundred percent (100%) of the fees required shall be paid upon reapplication and such fees shall be non-refundable. Additionally, any taxpayer reapplying for tax credits pursuant to this § 44-33.6-7 shall be required to submit evidence with its application establishing the reason for delay in commencement or the project sitting idle, as the case may be, and provide evidence, reasonably satisfactory to the commission, that such condition or event causing same has been resolved. All taxpayers shall submit a reasonably detailed project timeline to the commission together with the Part 2 application. The provisions of this section shall be further detailed and incorporated into the form of contract for tax credits used in connection with this chapter.
  • (b) Notwithstanding any other provision of law to the contrary, projects that have been approved for historic preservation tax credits and have been funded through the cultural arts and the economy grant program, as enacted in chapter 145 of the 2014 Pub. L., and whose tax credits expire on December 31, 2019, shall remain in full force and effect until December 31, 2022.
  • SECTION 2. This act shall take effect upon passage.
  • (a) Taxpayers shall have twelve (12) months from the approval of Part 2 application to commence substantial construction activities related to the subject substantial rehabilitation. Upon commencing substantial construction activities, the taxpayer shall submit an affidavit of commencement of substantial construction to the commission, together with evidence of such requirements having been satisfied. Furthermore, after commencement of substantialconstruction activities, no project shall remain idle prior to completion for a period of time exceeding six (6) months. In the event that a taxpayer does not commence substantialconstruction activities within twelve (12) months from the approval of Part 2 application, or in the event that a project remains idle prior to completion for a period of time exceeding six (6) months, the subject taxpayer shall forfeit all fees paid prior to such date and its then-current contract for tax credits shallbe deemed null and void, and shall terminate without need for further action or documentation. Upon any such forfeiture and termination, a taxpayer may re-apply for tax credits pursuant to this chapter, however, notwithstanding anything contained herein to the contrary, one hundred percent (100%) of the fees required shall be paid upon reapplication and such fees shall be non-refundable. Additionally, any taxpayer reapplying for tax credits pursuant to this § 44-33.6-7 shallbe required to submit evidence with its application establishing the reason for delay in commencement or the project sitting idle, as the case may be, and provide evidence, reasonably satisfactory to the commission, that such condition or event causing same has been resolved. All taxpayers shall submit a reasonably detailed project timeline to the commission together with the Part 2 application. The provisions of this section shall be further detailed and incorporated into the form of contract for tax credits used in connection with this chapter.
  • (b) Projects that have been approved for historic preservation tax credits and have been funded through the cultural arts and the economy grant program, as enacted in chapter 145 of the 2014 Pub. L., and whose contract for tax credits would expire on December 31, 2019, are not subject to the provisions of § 44-33.6-7 and shall remain in full force and effect until December 31, 2022.
  • 44-33.6-11. Sunset.
  • No credits shall be authorized to be reserved pursuant to this chapter on or after June 30, 2019 2020, or upon the exhaustion of the maximum aggregate credits, whichever comes first.
  • SECTION 2. This act shalltake effect upon passage.
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  • LC002727
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  • LC002727/SUB A/2 - Page 2of 3
  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • A N A C T
  • RELATING TO TAXATION – HISTORIC PRESERVATION TAX CREDITS
  • ***
  • This act would extend the use of historic tax credits for three (3) years until December 31, 2022, for all projects which have been funded through the cultural arts and the economy grant program, as enacted in chapter 145 of the 2014 Pub. L., and which would have expired on December 31, 2019.
  • This act would take effect upon passage. ======== LC002727 ========
  • This act would extend the use of historic tax credits for three (3) years until December 31, 2022, for all projects which have been funded through the culturalarts and the economy grant program, as enacted in chapter 145 of the 2014 Pub. L., and which would have expired on December 31, 2019. The act would also extend the sunset provision of the historic tax credits from June 30, 2019, to June 30, 2020.
  • This act would take effect upon passage. ======== LC002727/SUB A/2 ========
  • LC002727/SUB A/2 - Page 3of 3

Votes

NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the House or Senate Journal from the day of the vote.

Floor vote for Passage

June 27, 2019 at 5:31pm
Yeas: 38 / Nays: 0 / Not voting: 0 / Recused: 0
Legislator Vote
Sen. Algiere Y
Sen. Archambault Y
Sen. Bell Y
Sen. Cano Y
Sen. Ciccone Y
Sen. Conley Y
Sen. Coyne Y
Sen. Crowley Y
Sen. Cruz Y
Sen. DiPalma Y
Sen. Euer Y
Sen. Felag Y
Sen. Gallo Y
Sen. Goldin Y
Sen. Goodwin Y
Sen. Lawson Y
Sen. Lombardi Y
Sen. Lombardo Y
Sen. Lynch Prata Y
Sen. McCaffrey Y
Sen. McKenney Y
Sen. Metts Y
Sen. Miller Y
Sen. Morgan Y
Sen. Murray Y
Sen. Nesselbush Y
Sen. Paolino Y
Sen. Pearson Y
Sen. Picard Y
Sen. Quezada Y
Sen. Raptakis Y
Sen. Rogers Y
Sen. Ruggerio Y
Sen. Satchell Y
Sen. Seveney Y
Sen. Sheehan Y
Sen. Sosnowski Y
Sen. Valverde Y