870 R.I. Code R. 870-RICR-30-00-3.6

Current through December 3, 2024

Section 870-RICR-30-00-3.6 - Eligibility

A. In order for a Commercial Project to be eligible to be considered for a Tax Credit:

1. The total Project Cost must be $5,000,000 or more, unless the Project is located in a Hope Community or a redevelopment area designated as such in accordance with R.I. Gen. Laws § 45-32-4, in which event the Corporation shall have the discretion to permit the total Project Cost to be less than $5,000,000;

2. The Project consists of at least 25,000 square feet;

3. The Project, after being Placed In Service, is occupied by one or multiple Businesses employing at least 25 Full-Time Employees;

4. The Applicant's Equity in the Project is not less than twenty percent (20%) of the total Project Cost.

5. There is a Project Financing Gap such that the Project is not likely to be accomplished by private enterprise.

B. In order for a Residential Project to be eligible to be considered for a Rebuild Rhode Island Tax Credit:

1. The Project must be located in a Hope Community in a structure that is new, an Adaptive Reuse, Certified Historic Structure, or Recognized Historic Structure;

2. The total Project Cost must be $5,000,000 or more, unless the Corporation in its discretion permits the total Project Cost to be less than $5,000,000;

3. The Project must consist of at least 20,000 square feet and contain at least 20 residential units;

4. The combined total of the Applicant's Equity in the Project is not less than twenty percent (20%) of the total Project Cost; and

5. There is a Project Financing Gap such that the Project is not likely to be accomplished by private enterprise.

C. In order for a Mixed Use Project to be eligible to be considered for a Tax Credit:

1. The total Project Cost must be $5,000,000 or more, unless the Project is located in a Hope Community or a redevelopment area designated as such in accordance with R.I. Gen. Laws § 45-32-4, in which event the Corporation shall have the discretion to permit the total Project Cost to be less than $5,000,000;

2. The Project consists of at least 25,000 square feet and contains at least one Business;

3. The Applicant's Equity in the Project is not less than twenty percent (20%) of the total Project Cost; and

4. There is a Project Financing Gap such that the Project is not likely to be accomplished by private enterprise.

D. Notwithstanding any of the requirements set forth in § 3.6(A) through (C) of this Part, in order for a development project that qualifies for a tax credit pursuant to R.I. Gen. Laws Chapter 44-33.6 (Historic Preservation Tax Credits 2013) to be eligible to be considered for a Tax Credit:

1. The combined total of the Applicant's Equity in the Project and Capital Investment in the Project made, acquired, or leased by the Applicant is not less than twenty percent (20%) of the total Project Cost; and

2. There is a Project Financing Gap such that, after taking into account all available private and public funding sources, the Project is not likely to be accomplished by private enterprise.

E. Prior to awarding any incentive under the Act, the Corporation may, in its discretion, require any Applicant to obtain a tax stabilization agreement from the municipality in which the Project is located on such terms as the Corporation deems acceptable.

870 R.I. Code R. 870-RICR-30-00-3.6

Amended effective 12/19/2018