§ 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 § 44-14-2(2) or credit union as defined in § 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.