§ 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.