TITLE 44

Taxation

CHAPTER 44-33.6

Historic Preservation Tax Credits 2013

SECTION 44-33.6-4



   § 44-33.6-4  Administration. –

(a) To claim the tax credit authorized in this chapter, taxpayers shall apply:



   (1) To the commission prior to the certified historic

structure being placed in service for a certification that the certified

historic structure's rehabilitation will be consistent with the standards of

the Secretary of the United States Department of the Interior for

rehabilitation;



   (2) To the commission after completion of the rehabilitation

work of the certified historic structure for a certification that the

rehabilitation is consistent with the standards of the Secretary of the United

States Department of the Interior for rehabilitation; and



   (3) To the division of taxation after completion of the

rehabilitation work of the certified historic structure for a certification as

to the amount of tax credit for which the rehabilitation qualifies. The

commission and the division of taxation may rely on the facts represented in

the application without independent investigation and, with respect to the

amount of tax credit for which the rehabilitation qualifies, upon the

certification of a certified public accountant licensed in the state of Rhode

Island. The applications shall be developed by the commission and the division

of taxation and may be amended from time to time.



   (b) Within thirty (30) days after the commission's and

division of taxation's receipt of the taxpayer's application requesting

certification for the completed rehabilitation work:



   (1) The commission shall issue the taxpayer a written

determination either denying or certifying the rehabilitation; and



   (2) Division of taxation shall issue a certification of the

amount of credit for which the rehabilitation qualifies. To claim the tax

credit, the division of taxation's certification as to the amount of the tax

credit shall be attached to all state tax returns on which the credit is

claimed.



   (c) No taxpayer may benefit from the provisions of this

chapter unless the owner of the certified historic structure grants a

restrictive covenant to the commission, agreeing that during the holding period

no material alterations to the certified historic structure will be made

without the commission's prior approval and agreeing that such shall be done in

a manner consistent with the standards of the Secretary of the United States

Department of the Interior; and, in the event the owner applies for the

twenty-five percent (25%) tax credit, that either:



   (1) At least twenty-five percent (25%) of the total rentable

area of the certified historic structure will be made available for a trade or

business; or



   (2) The entire rentable area located on the first floor of

the certified historic structure will be made available for a trade or

business, in either case, for a period of sixty (60) months after the placed in

service date of the certified historic structure or identifiable portion

thereof.



   (d) The division of taxation shall charge a fee equal to

three percent (3%) of qualified rehabilitation expenditures. The fee shall be

payable upon submission of the Part 2 application. The fee shall be

non-refundable.



   (e) Notwithstanding any provisions of the general laws or

regulations adopted thereunder to the contrary, including, but not limited to,

the provisions of chapter 2 of title 37, the division of taxation is hereby

expressly authorized and empowered to enter into contracts with persons, firms,

partnerships, trusts, estates, limited liability companies, corporations

(whether for profit or nonprofit) or other business entities that incur

qualified rehabilitation expenditures for the substantial rehabilitation of

certified historic structures or some identifiable portion of a structure. Upon

payment of the portion of the fee set forth in subdivision (d) above, the

division of taxation and the applicant shall enter into a contract for tax

credits consistent with the terms and provisions of this chapter.



   (f) Upon satisfaction of the requirements set forth herein

and the payment of the fees as set forth in subdivision (d) above, the division

of taxation shall, on behalf of the State of Rhode Island, guarantee the

delivery of one hundred percent (100%) of the tax credit and use of one hundred

percent (100%) of the tax credit in the tax year a certified historic structure

is placed in service through a contract with persons, firms, partnerships,

trusts, estates, limited liability companies, corporations (whether for profit

or nonprofit) or other business entities that will incur qualified

rehabilitation expenditures for the substantial rehabilitation of a certified

historic structure or some identifiable portion of a structure.



   (g) Any contract executed pursuant to this chapter by a

person, firm, partnership, trust, estate, limited liability company,

corporation (whether for profit or nonprofit) or other business entity shall be

assignable to:



   (1) An affiliate thereof without any consent from the

division of taxation;



   (2) A banking institution as defined by subdivision

44-14-2(2) or credit union as defined in subdivision 44-15-1.1(1) without any

consent from the division of taxation; or



   (3) A person, firm, partnership, trust, estate, limited

liability company, corporation (whether for profit or nonprofit) or other

business entity that incurs qualified rehabilitation expenditures for the

substantial rehabilitation of certified historic structures or some

identifiable portion of a structure, with such assignment to be approved by the

division of taxation, which approval shall not be unreasonably withheld or

conditioned. For purposes of this subsection, "affiliate" shall be defined as

any entity controlling, controlled by or under common control with such person,

firm, partnership, trust, estate, limited liability company, corporation

(whether for profit or nonprofit) or other business entity.



   (h) If information comes to the attention of the commission

or division of taxation at any time up to and including the last day of the

holding period that is materially inconsistent with representations made in an

application, the commission may deny the requested certification or revoke a

certification previously given, and in either instance all fees paid by the

applicant shall be deemed forfeited. In the event that tax credits or a portion

of tax credits are subject to recapture for ineligible costs and such tax

credits have been transferred, assigned and/or allocated, the state will pursue

its recapture remedies and rights against the applicant of the tax credits, and

all fees paid by the applicant shall be deemed forfeited. No redress shall be

sought against assignees, transferees or allocates of such credits provided

they acquired the tax credits by way of an arms-length transaction, for value,

and without notice of violation, fraud or misrepresentation.



   (i) The commission, in consultation with the division of

taxation, shall promulgate such rules and regulations as are necessary to carry

out the intent and purpose of this chapter.



History of Section.

(P.L. 2013, ch. 144, art. 22, § 2.)