Developers abandon $29M in tax credits

Developers abandoned $29.4 million in Rhode Island historic tax credits last month by failing to make progress on six approved projects, the R.I. Division of Taxation said Monday. More

To continue reading this article, please do one of the following.



development

Developers abandon $29M in tax credits

Posted 6/3/13

PROVIDENCE – Developers abandoned $29.4 million in Rhode Island historic tax credits last month by failing to make progress on six approved projects, the R.I. Division of Taxation said Monday.

Combined with previously forfeited credits, the incentive pool for historic redevelopment projects under a proposal by Gov. Lincoln D. Chafee to restart the program for new projects using old credits is now $34.5 million.

Since the state historic tax credit program was frozen to new projects in 2008, there have actually been $55.3 million in credits abandoned, including $25.9 million as of last November.

But according to tax officials, using all of the abandoned credits would exceed the $299 million made available to pay for the program by a state bond issue in 2008. As a result, the pool has been limited to $34.5 million.

The General Assembly is discussing proposals to bring back some form of the historic tax credit program, with House Speaker Gordon Fox’s plan not relying on the pool of abandoned credits, but instead including a $5 million per-project cap.

Citing taxpayer privacy laws, tax officials did not release any information about which projects failed to meet the May 15 deadline to show they had spent at least 10 percent of their qualified construction expenses.

The report estimated that, should all $34.5 million in credits be put to use under Chafee’s plan, it would generate $138.1 million in direct construction spending.

No comments on this story | Add your comment
Please log in or register to add your comment
Calendar
PBN Hosted
Events

Only a few seats remain for PBN's Manufacturing Awards Dinner and Ceremony, Thursday, April 24th, at the Bryant University Bello Center. Don't hesitate. Register today!
  • Business Women
    Accomplished. Confident. Wicked Smart. Nominate women you know who deserve speci ...
  • 40 Under Forty
    It's the 10th Anniversary of 40 Under Forty, and PBN is planning a special event ...
  • Healthiest Employers
    Enrollment now open for the 2014 Healthiest Employers Program. Please take a mom ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News