Increases historic tax credit to 30%, and up to 35%, depending on the amount of rental area available for multi-family housing, affordable rental units and units sold as affordable housing.

Rhode Island Historic Preservation Tax Credit Bill

This bill would increase the tax credit available to developers and property owners who restore or rehabilitate historic buildings in Rhode Island. Currently, those who qualify for the historic preservation tax credit receive a certain percentage of their project costs back as a tax break. This bill would raise that credit to 30%, with the possibility of going up to 35% if the restored building includes a meaningful amount of housing — specifically multi-family rental units, affordable rental units, or homes sold at affordable prices.

The higher credit is essentially an incentive to encourage developers not just to preserve historic buildings, but to turn them into housing — particularly housing that is accessible to lower- and moderate-income residents. The more affordable housing a developer includes in their historic renovation project, the greater the tax benefit they could receive.

This bill would most directly affect real estate developers, investors, and property owners who work on historic building projects in Rhode Island. It could also benefit renters and homebuyers who are looking for affordable housing options, since the enhanced credit is designed to encourage more of those units to be created. Local communities with historic buildings in need of renovation could also see broader economic benefits if more projects move forward as a result of the increased incentive.

As of its most recent legislative action, the bill has been introduced and referred to the House Finance Committee, meaning it is still in the early stages of the legislative process and has not yet been voted on.