RI State Historic Tax Credits
To solve Rhode Island’s housing crisis, state leaders must fix the State Historic Tax Credit Program
Shri Studios (Pawtucket) converted an historic mill into a community and living space for adults with intellectual disabilities
Rhode Island’s Historic Tax Credits are a proven tool to create more housing stock—from 2013 to 2024 approximately 20% of all new housing in Rhode Island came through the program, including 20% of all affordable housing. But unlike neighboring states which are expanding their programs to address their housing crises, Rhode Island’s Historic Tax Credit program has been stymied through lack of funding, onerous fees, and a lack of transparency. Just when the program is needed most, and elected officials are focused on fixing the housing crisis, a critical housing and community development program is left out of funding.
Historic Tax Credits not only generate much-needed housing stock, they are a proven economic and community development engine. Over the last 24 years more than 300 historic buildings have been rehabilitated, using $445.6 million in Historic Tax Credits to catalyze more than $2.2 billion in direct investment in twenty-four cities and towns throughout Rhode Island. In addition to those direct investments, a 2017 Economic Study by PlaceEconomics showed that every $1 invested in the program results in over $10 in economic activity. Moreover, Historic Tax Credit projects have rejuvenated neighborhoods, cleaned up brownfield sites, generated extra local and state tax revenue, and improved Rhode Islanders’ quality of life.
We are building on our success in 2025 to fix this vital program. With hundreds signing our petition, we worked with others to eliminate one of the largest barriers to participation in the HTC program for small to medium size projects. This was achieved by raising the prevailing wage threshold for projects from $10 million to $25 million in total hard costs. We could not have done this without your support, and we hope we can count on you again in 2026.
This year, we have worked with legislators to get complimentary bills S3151 and H8408 introduced at the State House. We are very grateful to the lead sponsors of these bills—Senator Bisaillon and Representative Speakman, along with more than a dozen co-sponsors. The proposed legislation would:
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Increase the tax credit from 20% to 30% for housing intensive projects—those that use at least 80% of their total rental area for multi-family housing
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Increase the tax credit from 20% to 35% for projects that meet the above housing requirement, but also make 20% of housing units affordable rentals, or 10% sold as affordable housing
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Lower the filing fee from 3% to 1% of qualified rehab expenditures and make the fee refundable upon project completion
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Extend the Program’s Sunset for 5 years to June 30, 2031.
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Increase transparency of the project waiting list, allowing the public to better understand the location and type of proposed historic rehab projects, and developers to better plan financing for projects
Spring 2026 Update
For years, Preserve RI has partnered with Grow Smart RI to advocate for the state’s Historic Tax Credit (HTC) program. This program has a proven track record – it has generated over $2.18 billion in total investment into the state and has generated approximately 20% of all new housing from 2013 through 2023. After unsuccessful efforts to include funding for the program in the Governor’s budget, we worked with key allies in both the House and Senate to introduce two pieces of legislation (H8408 and S3151) in both houses that would address issues with the program, including an extension of the sunset (“sunset” refers to the expiration of a particular law/program). Despite the Senate passing S3151 with a minor Sub A revision, the House did not take action prior to the close of the legislative session. This is likely due to the last-minute change in House Leadership. Without any action by the House, the HTC program will be sunsetting at the end of June.
Preserve RI and Grow Smart RI are currently working with the Division of Taxation to better understand the implications of the program sunsetting. We will provide updates on this critical matter as they arise.
“While we are incredibly disappointed that the RI’s Historic Tax Credit Program will sunset at the end June, we are that much more motivated to continue our advocacy work with Grow Smart RI in the upcoming legislative session. Historic Tax Credits stimulate the economy, encourage more sustainable building practices, and revitalize brownfield sites across the state. It is imperative that the program be restarted in 2027.” – Sheryl Hack, Executive Director
A special thank you to Senators DiPalama and Bissaillon, and Representative Speakman (and all other bill sponsors) for spearheading our legislative efforts. Also, thank you to Senate President Lawson and Majority Leader Ciccone for prioritizing passage in the Senate.