PROVIDENCE, R.I. --- The state's historic tax credit program for commercial redevelopment projects is reopening on a limited basis next month, after being closed to new applicants since 2008.
The state Division of Taxation announced Wednesday that it would begin accepting applicants starting Aug. 1.
It comes after Governor Chafee signed into law an $8.2 billion state budget that calls for re-starting the program.
First launched in 2001, the credit program helped spur rehabilitation of old mill and industrial buildings throughout the state, but was frozen amidst growing criticism over its costs.
The new program would be able to distribute about $34.5 million in credits, which represents the amount unclaimed under the previous program. The credits can be used to offset various state income taxes, can be carried forward for up to 10 years and are transferable.
The tax discounts are meant to cover between 20 to 25 percent of a project's qualified expenses.
But, under the new program, each project is limited to non more than $5 million in total credits. No building -- even if it is to be completed in phases or in multiple projects -- may exceed that cap.
According to the tax division, no applications will be accepted before Aug. 1.
And if the aggregate amount of credits requested in the applications exceeds available funds, the division will hold a drawing to determine which applications may later qualify for the credits.