More than $228 million in potential expenditures in rehabilitating Rhode Island buildings is on hold due to the state budget impasse.
The state’s Historic Tax Credit program expired June 30, although the budget for the fiscal year that started July 1 would have extended the tax credit program for two years. But lawmakers left the Statehouse without approving a final spending plan, so 30 projects in the Historic Tax Credit pipeline remain in limbo.
Paul Grimaldi, spokesman for the state Department of Revenue, said the 30 projects represent $228,153,119 in estimated qualified rehabilitation expenditures as part of the Historic Tax Credit program. The estimated credits for those projects is $53,957,849.
Work on the pending proposed projects would likely not begin soon if lawmakers returned to pass a budget. Yet the freeze on considering the requests is just one example of how the impasse is affecting different parts of Rhode Island’s economy.
State Education Commissioner Ken Wagner warned this week that schools are facing a $45 million hit in state funding, and the state is collecting less revenue than it would under the terms of the fiscal 2018 budget.
Meanwhile, House Speaker Nicholas Mattiello and Senate President Dominick Ruggerio have not spoken since the budget impasse developed on June 30. Each legislative leader said the other bears responsibility for resolving the dispute.
Grimaldi declined to identify proposals being considered for Historic Tax Credits. “Specific project information is considered confidential until the time a contract is entered into with the Division of Taxation,” he said.
State Department of Administration spokeswoman Brenna McCabe said “projects that have been conditionally approved for credits prior to the [June 30] sunset of the program will not be impacted.” Here’s a list of those approved projects.
According to the state Historic Preservation & Heritage Commission, “The Rhode Island Historic Preservation Tax Credit helps you restore your historic income-producing building by making preservation work more affordable. If your preservation project is approved, you will receive a credit on your state income tax return.”
Grow Smart Rhode Island credits the Historic Tax Credit Program with sparking $1.45 billion in private investment, on 257 projects around the state, since it was created in 2002.
