2015 -- H 6104

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LC002435

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION -- RHODE ISLAND LIVABLE HOME TAX CREDIT ACT

     

     Introduced By: Representatives Naughton, Canario, Shekarchi, Bennett, and Keable

     Date Introduced: April 17, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

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adding thereto the following chapter:

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CHAPTER 70

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RHODE ISLAND LIVABLE HOME TAX CREDIT ACT

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     44-70-1. Short title. -- This chapter shall be known and may be cited as the "Rhode

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Island Livable Home Tax Credit Act."

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     44-70-2. Definitions. -- For the purpose of this chapter:

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     (1) "Corporation" means Rhode Island housing and mortgage finance corporation.

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     (2) "Director" means the executive director of that corporation.

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     44-70-3. Tax credits. -- For taxable years beginning on and after January 1, 2016, any

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taxpayer who purchases a new residence or retrofits or hires someone to retrofit an existing

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residence, provided that such new residence or the retrofitting of such existing residence is

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designed to improve accessibility, provide universal visitability, and meets the eligibility

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requirements established by guidelines developed by the corporation, shall be allowed a credit

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against the tax imposed pursuant to § 44-30-1 of an amount equal to five thousand dollars

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($5,000) for such new residence, or fifty percent (50%) of the total amount spent for the

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retrofitting of such existing residence, not to exceed five thousand dollars ($5,000). The credit

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shall be allowed for the taxable year in which the residence has been purchased or construction,

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retrofitting, or renovation of the residence or residential structure or unit has been completed.

 

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Such a credit shall require application by the taxpayer as provided in § 44-70-4.

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     44-70-4. Applications. -- Eligible taxpayers shall apply for the credit by making

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application to the corporation, which shall issue a certification for an approved application to the

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taxpayer. The taxpayer shall attach the certification to the applicable income tax return. The total

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amount of tax credits granted under this section for any fiscal year shall not exceed five hundred

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thousand dollars ($500,000). In each year, the corporation shall allocate two hundred fifty

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thousand dollars ($250,000) in tax credits for the purchase or construction of new residences and

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two hundred fifty thousand dollars ($250,000) in tax credits for the retrofitting or renovation of

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existing residences or residential structures or units. If the amount of tax credits approved in a

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fiscal year for the purchase or construction of new residences is less than two hundred fifty

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thousand dollars ($250,000), the director of the corporation shall allocate the remaining balance

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of such tax credits for the retrofitting or renovation of existing residences or residential structures

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or units. If the amount of tax credits approved in a fiscal year for the retrofitting or renovation of

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existing residences or residential structures or units is less than two hundred fifty thousand dollars

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($250,000), the director shall allocate the remaining balance of such tax credits for the purchase

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or construction of new residences. In the event applications for the tax credit exceed the amount

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allocated by the director for the fiscal year, the corporation shall issue the tax credits pro rata

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based upon the amount of tax credit approved for each taxpayer and the amount of tax credits

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allocated by the director.

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     44-70-5. Limitations. -- (a) No credit shall be allowed under this chapter for the

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purchase, construction, retrofitting, or renovation of residential rental property.

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     (b) In no case shall the director issue any tax credit relating to transactions or dealings

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between affiliated entities. In no case shall the director issue any tax credit more than once to the

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same or different persons relating to the same retrofitting, renovation, or construction project.

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     (c) In no case shall the amount of credit taken by a taxpayer pursuant to this chapter

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exceed the taxpayer's income tax liability for the taxable year. If the amount of credit allowed for

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the taxable year in which the residence has been purchased or construction, retrofitting, or

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renovation of the residence or residential structure or unit has been completed exceeds the

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taxpayer's income tax liability imposed for such taxable year, then the amount that exceeds the

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tax liability may be carried over for credit against the income taxes of such taxpayer in the next

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seven (7) taxable years or until the total amount of the tax credit issued has been taken, whichever

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is sooner. Credits granted to a partnership, limited liability company, or electing small business

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corporation (S corporation) shall be allocated to the individual partners, members, or

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shareholders, respectively, in proportion to their ownership or interest in such business entities.

 

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- RHODE ISLAND LIVABLE HOME TAX CREDIT ACT

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     This act would establish the "Rhode Island Livable Home Tax Credit Act", and provide

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for its administration.

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     This act would take effect upon passage.

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