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 renovate qualifying historic properties can receive a tax credit to help offset their costs. This bill would raise that credit to 30% of eligible renovation expenses, with the possibility of reaching 35% if the restored building includes certain types of housing.

To qualify for the higher 35% credit, a developer would need to include a meaningful portion of the renovated building as multi-family housing, affordable rental units, or homes sold at affordable prices. In other words, the more a historic renovation project contributes to affordable housing options in the community, the greater the financial incentive the developer would receive from the state.

The bill would most directly affect real estate developers, property investors, and preservation organizations that work on historic buildings. It could also benefit lower- and middle-income renters and homebuyers by encouraging developers to include affordable housing units in renovation projects. Historic neighborhoods and communities across Rhode Island could also see broader benefits through increased investment in older, architecturally significant buildings that might otherwise sit vacant or deteriorate.

As of its most recent action, the bill has been introduced and sent to the Senate Finance Committee for review, meaning it has not yet been voted on or signed into law.