310 R.I. Code R. 310-RICR-10-10-1.11

Current through December 3, 2024

Section 310-RICR-10-10-1.11 - Tax Credit Agreement

A. Upon the Department's approval of a tax credit for an applicant, the Department and the applicant will enter into a tax credit agreement prior to the issuance of any tax credit to the applicant. As part of the construction closing for the project, the Department and the applicant will enter into a tax credit agreement prior to the issuance of any tax credit to the applicant. The tax credit agreement shall include, among others, the following terms:

1. The maximum tax credit awarded;

2. The tax credit shall not be issued prior to the qualified Rhode Island project being Placed in Service;

3. Evidence that the applicant is in good standing with the Secretary of State and Division of Taxation at the time of execution of the tax credit agreement; a Certificate of Good Standing from the Secretary of State shall be evidence of good standing with the Secretary of State and a Letter of Good Standing from the Division of Taxation shall be evidence of good standing with the Division of Taxation;

4. A provision that the tax credit shall be allowed in five (5) equal, annual increments;

5. Default and remedies including events, if any, that would trigger forfeiture, revocation and/or recapture of the awarded tax credits;

6. Indemnification, insurance and other customary protective requirements;

7. Reporting requirements;

8. The imposition of such restrictions or covenants upon the qualified Rhode Island project as may be necessary to ensure continued compliance with the Act and these Rules;

9. At the Department's discretion, a provision requiring the applicant to pay the Department's attorneys' fees incurred in connection with the negotiation, execution, and enforcement of the tax credit agreement;

10. A procedure to obtain an eligibility statement, which shall include, but not be limited to, the following:

a. Representations that the qualified Rhode Island project complies with all applicable laws and regulations;

b. Evidence that the applicant is in good standing with the Secretary of State and Division of Taxation at the time the applicant files its request for an eligibility statement. A Certificate of Good Standing from the Secretary of State shall be evidence of good standing with the Secretary of State and a Letter of Good Standing from the Division of Taxation shall be evidence of good standing with the Division of Taxation;

c. A requirement that the applicant submit, prior to issuance of any tax credit, satisfactory evidence of actual project costs, as certified by a Certified Public Accountant licensed in the State. If the actual project costs are less than the estimated project costs forming the basis for the approval of the awarded tax credits, then the awarded tax credit shall be reduced based upon the actual project costs;

d. Evidence that the Qualified Rhode Island project has been Placed in Service and meets such other criteria as imposed by the Department.

11. A provision that authorizes the Division of Taxation to share the applicant's tax information with the Department.

B. The Tax Credit Agreement will be filed as an affordable housing deed restriction in the land records of the city or town where the real estate lies that requires the project to be operated in accordance with the requirements of the Act for not less than thirty (30) years from the expiration date of the compliance period.

310 R.I. Code R. 310-RICR-10-10-1.11

Adopted effective 10/8/2024