Massachusetts’ Historic Tax Credits far outpace Rhode Island’s program. As part of the recent Affordable Homes Act, Massachusetts has doubled their investment in Historic Tax Credits, increasing funding for the program from $55 to $110 million through 2030.
Massachusetts “gets” that state historic tax credits are a powerful tool to spur investment in housing. Similarly, here in Rhode Island, Historic Tax Credits catalyze housing: since 2002 approximately 20% of all housing units—including approximately 20% of all affordable housing units—have come from projects that utilized state Historic Tax Credits.
Despite being a powerful generator of much needed housing, Rhode Island’s Historic Tax Credit program has been stymied through lack of funding, legislative inaction, and onerous restrictions/requirements. Funding from the program is all but depleted and there is no new funding planned. Approximately 60 projects are now standing in line for funding, indefinitely awaiting funding that may not materialize. Further, restrictions have been added for larger projects – the very projects that create housing. For rehabilitation projects over $10 million, the costs of the program are now greater than the tax credit itself, negating the value of the credit and making the program entirely unworkable.
In short, Rhode Island’s Historic Tax Credits, a program that since 2002 has brought in over $2 Billion in investment to the state, is now stuck in limbo and dysfunctional.
Preserve RI, working with Grow Smart RI, is advocating that the General Assembly fix this important program so it once again functions as Rhode Island’s successful tool for community development and the creation of housing.
Comments