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Rhode Island Legislation Would Create Tax Credit for Improvements to Certain LIHTC Properties

Wednesday, May 8, 2024 - 10:21AM

Legislation introduced in the Rhode Island Senate would provide a tax credit for improvements to certain properties financed by low-income housing tax credits (LIHTCs). S.B. 3028 would create a competitive Rhode Island Low-Income Housing Improvement Tax Credit for properties whose owners control 12 or fewer units that will be improved. The credit would be taken in five equal installments and properties taking the credit would commit to 15 years of affordability after receiving the credit. Taxpayers would be allowed to redeem the credit for 90% of its value. The statewide annual cap for the credit would be $10 million. The credit would be effective July 1 and no credits could be authorized after June 30, 2029.

The Novogradac Introduction to Low-Income Housing Tax Credits booklet provides a brief, but substantive look into the background and structure of the LIHTC.

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