280-20-20 R.I. Code R. § 6.9

Current through June 20, 2024

Section 280-RICR-20-20-6.9 - Administration

A. To claim the tax credit authorized in R.I. Gen. Laws Chapter 44-33.6, the Applicant shall apply:

1. To the Commission, prior to the Certified Historic Structure being Placed-in-Service, for a determination of historic significance;

2. 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;

3. 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

4. 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 by 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 the Division of Taxation's receipt of the Applicant's fully documented application requesting certification for the completed Rehabilitation work:

1. The Commission shall issue the Applicant a written determination either denying or certifying the Rehabilitation; and

2. Subject to the Commission's approval of the completed Rehabilitation and provided that the Division of Taxation has received all materials required by §§ 6.17 and 6.19 of this Part no later than the beginning of the thirty (30) day period referenced above the Division of Taxation shall issue a certification of the amount of credit for which the Rehabilitation qualifies. To claim the tax credit, the Applicant shall attach the Division of Taxation's certification as to the amount of the tax credit to all state tax returns on which the Credit is claimed.

C. No taxpayer may benefit from the provisions of R.I. Gen. Laws Chapter 44-33.6 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.

3. In the event at least twenty-five percent (25%) of the total rentable area, or the entire first floor, of the Certified Historic Structure is not made available for a Trade or Business, the tax credit shall be reduced from twenty-five percent (25%) to twenty percent (20%) of QREs.

D. Within thirty (30) days after the certification date of Part 2 Application, the Applicant shall pay to the Division of Taxation a non-refundable Processing Fee equal to three percent (3%) of estimated QREs. The fee shall be payable prior to the signing of the Contract.

E. Under authority of R.I. Gen. Laws § 44-33.6-4(e) the Division of Taxation is expressly authorized and empowered to enter into Contracts with Persons, firms, partnerships, trusts, estates, LLCs, corporations (whether for profit or nonprofit) or other business entities that incur QREs for the Substantial Rehabilitation of Certified Historic Structures or some identifiable portion of a structure. Upon payment of the fee set forth in § 6.9(D) of this Part 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 all the requirements set forth in this regulation and the payment of the fees as set forth in § 6.9(D) of this Part 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, LLCs, corporations (whether for profit or nonprofit) or other business entities that will incur QREs for the Substantial Rehabilitation of a Certified Historic Structure or some identifiable portion of a structure. The maximum credit will not exceed the lesser of the amount originally contracted or the credit based on QREs actually incurred and audited by the Division of Taxation.

G. Any Contract executed pursuant to R.I. Gen. Laws Chapter 44-33.6 by a Person, firm, partnership, trust, estate, LLC, 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 R.I. Gen. Laws § 44-14-2(2) or credit union as defined in R.I. Gen. Laws § 44-15-1.1(1) without any consent from the Division of Taxation;

3. A Person, firm, partnership, trust, estate, LLC, corporation (whether for profit or nonprofit) or other business entity that incurs QREs 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; or

4. Any other Person, firm, partnership, trust, estate, LLC, corporation (whether for profit or nonprofit) or other business entity that is approved by the Division of Taxation, which approval shall not be unreasonably withheld or conditioned.

H. If information comes to the attention of the Commission or the 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 for 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.

280 R.I. Code R. § 280-RICR-20-20-6.9