Rhode Island § 44-71-5 - Low-Income Housing Tax Credits

§ 44-71-5. Rhode Island low-income housing tax credits.

(a) A taxpayer owning an interest in a qualified Rhode Island project may be allowed a Rhode Island low-income housing tax credit against the taxes imposed pursuant to chapter 11, 13, 14, 17, or 30 of this title with respect to that qualified Rhode Island project in an amount authorized, determined, and allocated by the department based on the qualified Rhode Island project’s need for the credit for economic feasibility, provided that the department issues an eligibility statement for that qualified Rhode Island project.

(b) At the time of application to the department for an eligibility statement, an applicant shall, through its chief executive officer or equivalent authorized officer, demonstrate to the department that:

(1) The project is a qualified Rhode Island project;

(2) The owner of the qualified Rhode Island project has entered into a tax credit agreement with the department; and

(3) The applicant satisfies other additional criteria determined by the department from time to time.

(c) The Rhode Island low-income housing tax credit allocated to a taxpayer with respect to a qualified Rhode Island project shall be taken against the taxpayer’s taxes imposed pursuant to chapter 11, 13, 14, 17, or 30 of this title. The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer in five equal annual increments. If the portion of the tax credit allowed under this chapter exceeds the taxpayer’s total tax liability for the year in which the relevant portion of the credit is taken, the amount that exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for the succeeding four (4) years, or until the full credit is used, whichever occurs first.

(d) A qualified Rhode Island project that receives other incentives or tax credits available under the general laws of this state is also eligible to receive an allocation of Rhode Island low-income housing tax credits pursuant to this chapter.

(e) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem this credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division of taxation, in consultation with the department, shall establish by regulation a redemption process for tax credits.