Creates an affordable housing business tax credit as well as eliminate sales tax on any materials purchased for use in the renovation of affordable rental housing.

Rhode Island Affordable Housing Tax Credit Bill

This bill would create two financial incentives designed to encourage businesses and developers to invest in affordable rental housing in Rhode Island. First, it would establish a new tax credit for businesses that support affordable housing development — meaning companies could reduce the amount of taxes they owe to the state by investing in qualifying affordable housing projects. Second, it would eliminate the sales tax on building materials purchased specifically for renovating existing affordable rental housing, making those renovation projects less expensive to carry out.

The bill would primarily affect businesses and real estate developers who work on affordable housing, as well as the contractors and construction companies involved in renovation projects. By lowering the cost of renovations and providing a financial reward through tax credits, the bill aims to make it more financially attractive for the private sector to maintain and improve affordable rental units. Ultimately, the intended beneficiaries are low- and moderate-income Rhode Islanders who rely on affordable rental housing, as these incentives could help preserve and improve the quality of homes available to them.

Currently, the bill has been introduced in the Rhode Island House and referred to the House Finance Committee, where lawmakers will review and evaluate it before deciding whether to move it forward. No final action has been taken yet.