Rhode Island Historic Preservation Tax Credit
The Rhode Island Historic Preservation Tax Credit allows for a 20 percent tax credit for income-producing historic properties and a 25 percent credit for historic properties that use 25 percent of the total rentable space or the entire first floor for a trade or business. All credits are based on qualified rehabilitation expenditures (QREs) that follow the Secretary of the Interior’s Standards for Rehabilitation.
Per-project cap: $5 million (including all phases).
The credits may be carried forward for the following ten years after the building was put into use if the credits exceed the owner’s tax liability. All three parts of the application process (which certify that the building is historic and that all work follows the Secretary of the Interior’s Standards) will be reviewed by the Rhode Island Historical Preservation & Heritage Commission. In addition, the Part 3 is filed and approved by the Rhode Island Division of Taxation. The program was recently extended again in 2019. The RI Division of Taxation is still accepting applications for being assigned a place in the queue for tax credit allocations. However, tax credit funds are limited at this time.
Sunset date: Dec. 31, 2022.
Who can use the credit?
Credits can be used by for-profit and non-profit commercial property owners. Owner-occupied residences are not eligible. Credits may be sold or transferred to another Rhode Island taxpayer.
100 Oliver Street
Boston, MA 02110