Rhode Island Budget Legislation Would Create State LIHTC

Monday, June 5, 2023 - 10:30am

Proposed budget legislation in Rhode Island includes the allocation of up to $30 million annually for a new state low-income housing tax credit (LIHTC). H. 5200 includes the LIHTC provision, with the credits to be taken over five years. Under the legislation, a taxpayer could redeem 90% of the value of the tax credit. The spending bill needs the approval of the state Legislature and the signature of Gov. Daniel McKee. If enacted, the LIHTC would begin July 1 and would sunset June 30, 2028.

June 6 update: Corrects to accurately describe the tax credit redemption value.

The Novogradac Introduction to Low-Income Housing Tax Credit booklet provides a brief, but substantive look at the federal and state LIHTC.