42-28-22. Retirement of members.

(a) Whenever any member of the state police hired prior to July 1, 2007, has served for

twenty (20) years, the member may retire therefrom or they may be retired by the superintendent

with the approval of the governor, and in either event a sum equal to one-half (½) of the whole

salary for the position from which the member retired determined on the date the member receives

their first retirement payment shall be paid the member during life.

(b) For purposes of this section, the term “whole salary” means:

(1) For each member who retired prior to July 1, 1966, “whole salary” means the base

salary for the position from which the member retired as the base salary for that position was

determined on July 31, 1972;

(2) For each member who retired between July 1, 1966, and June 30, 1973, “whole salary”

means the base salary for the position from which the member retired as the base salary,

implemented by the longevity increment, for that position was determined on July 31, 1972, or on

the date of the member’s retirement, whichever is greater;

(3) For each member who retired or who retires after July 1, 1973, “whole salary” means

the base salary, implemented by the longevity increment, holiday pay, and clothing allowance, for

the position from which the member retired or retires.

(c)(1) Any member who retired prior to July 1, 1977, shall receive a benefits payment

adjustment equal to three percent (3%) of the member’s original retirement, as determined in

subsection (b) of this section, in addition to the member’s original retirement allowance. In each

succeeding year thereafter during the month of January, the retirement allowance shall be increased

an additional three percent (3%) of the original retirement allowance, not compounded, to be

continued until January 1, 1991. For the purposes of the computation, credit shall be given for a

full calendar year regardless of the effective date of the service retirement allowance. For purposes

of this subsection, the benefits payment adjustment shall be computed from January 1, 1971, or the

date of retirement, whichever is later in time.

(2) Any member of the state police who retires pursuant to the provisions of this chapter

on or after January 1, 1977, shall on the first day of January, next following the third anniversary

date of the retirement receive a benefits payment adjustment, in addition to their retirement

allowance, in an amount equal to three percent (3%) of the original retirement allowance. In each

succeeding year thereafter during the month of January, the retirement allowance shall be increased

an additional three percent (3%) of the original retirement allowance, not compounded, to be

continued until January 1, 1991. For the purposes of the computation, credit shall be given for a

full calendar year regardless of the effective date of the service retirement allowance.

(3) Any retired member of the state police who is receiving a benefit payment adjustment

pursuant to subsections (c)(1) and (c)(2) of this section shall beginning January 1, 1991, and ending

June 30, 2012, receive a benefits payment adjustment equal to fifteen hundred dollars ($1,500).

(d) The benefits payment adjustment as provided in this section shall apply to and be in

addition to the retirement benefits under the provisions of § 42-28-5, and to the injury and death

benefits under the provisions of § 42-28-21.

(e)(1) Any member who retires after July 1, 1972, and is eligible to retire prior to July 1,

2012, and who has served beyond twenty (20) years shall be allowed an additional amount equal

to three percent (3%) for each completed year served after twenty (20) years, but in no event shall

the original retirement allowance exceed sixty-five percent (65%) of the member’s whole salary as

defined in subsection (b) hereof or sixty-five percent (65%) of the member’s salary as defined in

subsection (b) hereof in the member’s twenty-fifth (25th) year whichever is less.

(2) Each member who retired prior to July 1, 1975, shall be entitled to all retirement

benefits as set forth above or shall be paid benefits as set forth in subsection (b)(1) with “whole

salary” meaning the base salary for the position from which the member retired as the base salary

for the position was determined on July 1, 1975, whichever is greater.

(f)(1) Any member who retires, has served as a member for twenty (20) years or more, and

who served for a period of six (6) months or more of active duty in the armed service of the United

States or in the merchant marine service of the United States as defined in § 2 of chapter 1721 of

the Public Laws, 1946, may purchase credit for such service up to a maximum of two (2) years;

provided that any member who has served at least six (6) months or more in any one year shall be

allowed to purchase one year for such service and any member who has served a fraction of less

than six (6) months in the member’s total service shall be allowed to purchase six (6) months’ credit

for such service.

(2) The cost to purchase these credits shall be ten percent (10%) of the member’s first year

salary as a state policeman multiplied by the number of years and/or fraction thereof of such armed

service up to a maximum of two (2) years. The purchase price shall be paid into the general fund.

For members hired on or after July 1, 1989, the purchase price shall be paid into a restricted revenue

account entitled “state police retirement benefits” and shall be held in trust.

(3) There will be no interest charge provided the member makes such purchase during their

twentieth (20th) year or within five (5) years from May 18, 1981, whichever is later, but will be

charged regular rate of interest as defined in § 36-8-1 as amended to date of purchase from the date

of the member’s twentieth (20th) year of state service or five (5) years from May 18, 1981,

whichever is later.

(4) Any member who is granted a leave of absence without pay for illness, injury, or any

other reason may receive credit therefor by making the full actuarial cost as defined in § 36-8-

1(10); provided the employee returns to state service for at least one year upon completion of the

leave.

(5) In no event shall the original retirement allowance exceed sixty-five percent (65%) of

the member’s whole salary as defined in subsection (b) hereof or sixty-five percent (65%) of the

member’s salary as defined in subsection (b) hereof in the member’s twenty-fifth (25th) year,

whichever is less.

(6) Notwithstanding any other provision of law, no more than five (5) years of service

credit may be purchased by a member of the system. The five-year (5) limit shall not apply to any

purchases made prior to January 1, 1995. A member who has purchased more than five (5) years

of service credits before January 1, 1995, shall be permitted to apply those purchases towards the

member’s service retirement. However, no further purchase will be permitted. Repayment in

accordance with applicable law and regulation of any contribution previously withdrawn from the

system shall not be deemed a purchase of service credit.

(g) The provisions of this section shall not apply to civilian employees in the Rhode Island

state police; and, further, from and after April 28, 1937, chapters 8 — 10, inclusive, of title 36 shall

not be construed to apply to the members of the Rhode Island state police, except as provided by

§§ 36-8-3, 36-10-1.1, 42-28-22.1, and 42-28-22.2, and § 36-8-1(5) and (8)(a) effective July 1, 2012.

(j) Effective July 1, 2012, any other provision of this section notwithstanding:

(1) Any member of the state police, other than the superintendent of state police, who is

not eligible to retire on or prior to June 30, 2012, may retire at any time subsequent to the date the

member’s retirement allowance equals or exceeds fifty percent (50%) of average compensation as

defined in § 36-8-1(5) (a) , provided that a member shall retire upon the first to occur of:

(i) The date the member’s retirement allowance equals sixty-five percent (65%); or

(ii) The later of the attainment of age sixty-two (62) or completion of five (5) years of

service; provided however, any current member as of June 30, 2012, who has not accrued fifty

percent (50%) upon attaining the age of sixty-two (62) shall retire upon accruing fifty percent

(50%); and upon retirement a member shall receive a retirement allowance which shall equal:

(A) For members hired prior to July 1, 2007, the sum of (i), (ii), and (iii) where:

(i) is calculated as the member’s years of total service before July 1, 2012, multiplied by

two and one-half percent (2.5%) of average compensation for a member’s first twenty (20) total

years,

(ii) is calculated as the member’s years of total service before July 1, 2012, in excess of

twenty (20) years not to exceed twenty-five (25) years multiplied by three percent (3%) of average

compensation, and

(iii) is the member’s years of total service on or after July 1, 2012, multiplied by two

percent (2%) of average compensation as defined in § 36-8-1(5) (b) .

(B) For members hired on or after July 1, 2007, the member’s retirement allowance shall

be calculated as the member’s years of total contributory service multiplied by two percent (2%)

of average compensation as defined in § 36-8-1(5) .

(C) Any member of the state police who is eligible to retire on or prior to June 30, 2012,

shall retire with a retirement allowance calculated in accordance with subsections (a) and (e) above

except that whole salary shall be defined as final compensation where compensation for purposes

of this section and § 42-28-22.1 includes base salary, longevity, and holiday pay.

(D) Notwithstanding the preceding provisions, in no event shall a member’s final

compensation be lower than their final compensation determined as of June 30, 2012.

(2) In no event shall a member’s original retirement allowance under any provisions of this

section exceed sixty-five percent (65%) of their average compensation.

(3) For each member who retires on or after July 1, 2012, except as provided in subsection

(j)(1)(ii)(C) above, compensation and average compensation shall be defined in accordance with §

36-8-1(5) (a) and (8), provided that for a member whose regular work period exceeds one hundred

forty-seven (147) hours over a twenty-four-day (24) period at any time during the four-year (4)

period immediately prior to the member’s retirement, that member shall have up to four hundred

(400) hours of their pay for regularly scheduled work earned during this period shall be included

as “compensation” and/or “average compensation” for purposes of this section and § 42-28-22.1.

(4) This subsection (j)(4) shall be effective for the period July 1, 2012, through June 30,

1 2015.

(i) Notwithstanding the prior subsections of this section, and subject to subsection (j)(4)(ii)

below, for all present and former members, active and retired members, and beneficiaries receiving

any retirement, disability or death allowance or benefit of any kind, whether for or on behalf of a

non-contributory member or contributory member, the annual benefit adjustment provided in any

calendar year under this section shall be equal to (A) multiplied by (B) where (A) is equal to the

percentage determined by subtracting five and one-half percent (5.5%) (the “subtrahend”) from the

Five-Year Average Investment Return of the retirement system determined as of the last day of the

plan year preceding the calendar year in which the adjustment is granted, said percentage not to

exceed four percent (4%) and not to be less than zero percent (0%), and (B) is equal to the lesser

of the member’s retirement allowance or the first twenty-five thousand dollars ($25,000) of

retirement allowance, such twenty-five thousand dollars ($25,000) amount to be indexed annually

in the same percentage as determined under (4)(i)(A) above. The “Five-Year Average Investment

Return” shall mean the average of the investment returns for the most recent five (5) plan years as

determined by the retirement board. Subject to subsection (j)(4)(ii) below, the benefit adjustment

provided by this subsection (j)(4)(i) shall commence upon the third (3rd) anniversary of the date of

retirement or the date on which the retiree reaches age fifty-five (55), whichever is later. In the

event the retirement board adjusts the actuarially assumed rate of return for the system, either

upward or downward, the subtrahend shall be adjusted either upward or downward in the same

amount.

(ii) Except as provided in subsection (j)(4)(iii), the benefit adjustments under this section

for any plan year shall be suspended in their entirety unless the funded ratio of the employees’

retirement system of Rhode Island, the judicial retirement benefits trust, and the state police

retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds eighty

percent (80%) in which event the benefit adjustment will be reinstated for all members for such

plan year.

In determining whether a funding level under this subsection (j)(4)(ii) has been achieved,

the actuary shall calculate the funding percentage after taking into account the reinstatement of any

current or future benefit adjustment provided under this section.

(iii) Notwithstanding subsection (j)(4)(ii), in each fifth plan year commencing after June

30, 2012, commencing with the plan year ending June 30, 2017, and subsequently at intervals of

five (5) plan years, a benefit adjustment shall be calculated and made in accordance with subsection

(j)(4)(i) above until the funded ratio of the employees’ retirement system of Rhode Island, the

judicial retirement benefits trust, and the state police retirement benefits trust, calculated by the

system’s actuary on an aggregate basis, exceeds eighty percent (80%).

(iv) The provisions of this subsection (j)(4) shall become effective July 1, 2012, and shall

apply to any benefit adjustment not granted on or prior to June 30, 2012.

(v) The cost-of-living adjustment as provided in this subsection (j)(4) shall apply to and be

in addition to the retirement benefits under the provisions of § 42-28-5 and to the injury and death

benefits under the provisions of § 42-28-21.

(5) This subsection (j)(5) shall become effective July 1, 2015.

(i)(A) As soon as administratively reasonable following the enactment into law of this

subsection (j)(5)(i)(A), a one-time benefit adjustment shall be provided to members and/or

beneficiaries of members who retired on or before June 30, 2012, in the amount of two percent

(2%) of the lesser of either the member’s retirement allowance or the first twenty-five thousand

dollars ($25,000) of the member’s retirement allowance. This one-time benefit adjustment shall be

provided without regard to the retiree’s age or number of years since retirement.

(B) Notwithstanding the prior subsections of this section, for all present and former

members, active and retired members, and beneficiaries receiving any retirement, disability or

death allowance or benefit of any kind, the annual benefit adjustment provided in any calendar year

under this section for adjustments on and after January 1, 2016, and subject to subsection (j)(5)(ii)

below, shall be equal to (I) multiplied by (II):

(I) shall equal the sum of fifty percent (50%) of (1) plus fifty percent (50%) of (2) where:

(1) is equal to the percentage determined by subtracting five and one-half percent (5.5%)

(the “subtrahend”) from the five-year average investment return of the retirement system

determined as of the last day of the plan year preceding the calendar year in which the adjustment

is granted, said percentage not to exceed four percent (4%) and not to be less than zero percent

(0%). The “five-year average investment return” shall mean the average of the investment returns

of the most recent five (5) plan years as determined by the retirement board. In the event the

retirement board adjusts the actuarially assumed rate of return for the system, either upward or

downward, the subtrahend shall be adjusted either upward or downward in the same amount.

(2) is equal to the lesser of three percent (3%) or the percentage increase in the Consumer

Price Index for All Urban Consumers (CPI-U) as published by the U.S. Department of Labor

Statistics determined as of September 30 of the prior calendar year.

In no event shall the sum of (1) plus (2) exceed three and one-half percent (3.5%) or be

less than zero percent (0%).

(II) is equal to the lesser of either the member’s retirement allowance or the first twenty-

five thousand eight hundred fifty-five dollars ($25,855) of retirement allowance, such amount to

be indexed annually in the same percentage as determined under (j)(5)(i)(B)(I) above. The benefit

adjustments provided by this subsection (j)(5)(i)(B) shall be provided to all retirees entitled to

receive a benefit adjustment as of June 30, 2012, under the law then in effect, and for all other

retirees the benefit adjustments shall commence upon the third anniversary of the date of retirement

or the date on which the retiree reaches their Social Security retirement age, whichever is later.

(ii) Except as provided in subsection (j)(5)(iii), the benefit adjustments under subsection

(j)(5)(i)(B) for any plan year shall be suspended in their entirety unless the funded ratio of the

employees’ retirement system of Rhode Island, the judicial retirement benefits trust, and the state

police retirement benefits trust, calculated by the system’s actuary on an aggregate basis, exceeds

eighty percent (80%) in which event the benefit adjustment will be reinstated for all members for

such plan year. Effective July 1, 2024, the funded ratio of the employees’ retirement system of

Rhode Island, the judicial retirement benefits trust, and the state police retirement benefits trust,

calculated by the system’s actuary on an aggregate basis, of exceeding eighty percent (80%) for the

benefit adjustment to be reinstated for all members for such plan year shall be replaced with

seventy-five percent (75%).

In determining whether a funding level under this subsection (j)(5)(ii) has been achieved,

the actuary shall calculate the funding percentage after taking into account the reinstatement of any

current or future benefit adjustment provided under this section.

(iii) Notwithstanding subsection (j)(5)(ii), in each fourth plan year commencing after June

30, 2012, commencing with the plan year ending June 30, 2016, and subsequently at intervals of

four plan years: (A) A benefit adjustment shall be calculated and made in accordance with

subsection (j)(5)(i)(B) above; and (B) Effective for members and/or beneficiaries of members who

retired on or before June 30, 2015, the dollar amount in (j)(5)(i)(B)(II) of twenty-five thousand

eight hundred fifty-five dollars ($25,855) shall be replaced with thirty-one thousand twenty-six

dollars ($31,026) until the funded ratio of the employees’ retirement system of Rhode Island, the

judicial retirement benefits trust, and the state police retirement benefits trust, calculated by the

system’s actuary on an aggregate basis, exceeds eighty percent (80%). Effective July 1, 2024, the

funded ratio of the employees’ retirement system of Rhode Island, the judicial retirement benefits

trust, and the state police retirement benefits trust, calculated by the system’s actuary on an

aggregate basis, of exceeding eighty percent (80%) shall be replaced with seventy-five percent

(75%).

(iv) Effective for members and/or beneficiaries of members who have retired on or before

July 1, 2015, a one-time stipend of five hundred dollars ($500) shall be payable within sixty (60)

days following the enactment of the legislation implementing this provision, and a second one-time

stipend of five hundred dollars ($500) in the same month of the following year. These stipends

shall be payable to all retired members or beneficiaries receiving a benefit as of the applicable

payment date and shall not be considered cost of living adjustments under the prior provisions of

this section.

(6) Any member with contributory service on or after July 1, 2012, who has completed at

least five (5) years of contributory service but who has not retired in accordance with subsection

(j)(1) above, shall be eligible to retire upon the attainment of the member’s Social Security

retirement age as defined in § 36-8-1(20).

(7) In no event shall a member’s retirement allowance be less than the member’s retirement

allowance calculated as of June 30, 2012, based on the member’s years of total service and whole

salary as of June 30, 2012.

(k) In calculating the retirement benefit for any member, the term base salary as used in

subsection (b)(3) or average compensation as used in subsection (j) shall not be affected by a

deferral of salary plan or a reduced salary plan implemented to avoid shutdowns or layoffs or to

effect cost savings. Basic salary shall remain for retirement calculation that which it would have

been but for the salary deferral or salary reduction due to a plan implemented to avoid shutdowns

or layoffs or to effect cost savings.

( l ) On and after July 1, 2026, notwithstanding any provision to the contrary:

(1) Any member of the state police who is hired prior to July 1, 2007, and who was not

eligible to retire on or before June 30, 2012, who has served for twenty (20) years, may retire

therefrom, or the member may be retired by the superintendent with the approval of the governor,

and shall be entitled to a retirement allowance of fifty percent (50%) of whole salary as defined in

subsection (b) of this section. Subject to the exceptions set forth in subsections ( l )(1)(i), ( l )(1)(ii)

and ( l )(1)(iii) of this section such members may serve up to a maximum of twenty-five (25) years,

and shall be allowed an additional amount equal to three percent (3.0%) for each completed year

served after twenty (20) years, but in no event shall the original retirement allowance exceed sixty-

five percent (65%) of the member’s “whole salary” as defined in subsection (b) of this section.

"Whole salary" for purposes of the retirement allowance shall be calculated pursuant to subsection

(b) of this section and be based on the average of the member's highest three (3) consecutive years

of compensation.

(i) Notwithstanding any provision to the contrary, any member who was sworn into service

with the Rhode Island state police during the year 1997, shall not be required to retire before

September 1, 2026. Any member who has worked beyond their twenty-fifth (25 th ) year, pursuant

to the provisions of this subsection and elects to work until September 1, 2026, shall accrue no

additional service credit but shall continue to make retirement contributions in accordance with §

42-28-22.1, and the whole salary for purposes of the retirement allowance shall be calculated

pursuant to subsection (b) of this section and be based on the average of the member's highest three

(3) consecutive years of compensation.

(ii) Notwithstanding any provision to the contrary, any member who was sworn into service

with the Rhode Island state police during the year 2000, shall not be required to retire before

7 January 18, 2028. Any member who has worked beyond their twenty-fifth (25 th ) year, pursuant to

the provisions of this subsection and elects to work until January 18, 2028, shall accrue no

additional service credit but shall continue to make retirement contributions in accordance with §

42-28-22.1 and the whole salary for purposes of the retirement allowance shall be calculated

pursuant to subsection (b) of this section and be based on the average of the member's highest three

(3) consecutive years of compensation.

(iii) Notwithstanding any provision to the contrary, any member who was sworn into

service with the Rhode Island state police during the year 2005, shall not be required to retire before

15 January 21, 2031. Any member who has worked beyond their twenty-fifth (25 th ) year, pursuant to

the provisions of this subsection and elects to work until January 21, 2031, shall accrue no

additional service credit but shall continue to make retirement contributions in accordance with §

42-28-22.1 and the whole salary for purposes of the retirement allowance shall be calculate

pursuant to subsection (b) of this section and be based on the average of the member's highest three

(3) consecutive years of compensation.

(2) Any member of the state police hired on or after July 1, 2007, who has served for

twenty-five (25) years, may retire therefrom, or the member may be retired by the superintendent

with the approval of the governor, and shall be entitled to a retirement allowance of fifty percent

(50%) of whole salary as defined in subsection (b) of this section. Such members may serve a

maximum of thirty (30) years, and shall be allowed an additional amount equal to three percent

(3.0%) for each completed year served after twenty-five (25) years, but in no event shall the original

retirement allowance exceed sixty-five percent (65%) of the member’s “whole salary” as defined

in subsection (b) of this section. "Whole salary" for purposes of the retirement allowance shall be

calculated pursuant to subsection (b) of this section and be based on the average of the member's

highest three (3) consecutive years of compensation.

(m) Any member of the state police, or their beneficiary, who retired on or after July 1,

2024, and prior to July 1, 2026, shall have their retirement allowance recalculated, retroactive to

their date of retirement, to reflect the benefit provided in subsections (b) and ( l ) of this section. This

provision shall be implemented as soon as administratively feasible. In no event shall a member's

retirement allowance under this provision be less than the member's retirement allowance

calculated as of the date of their retirement.

SECTION 8. Sections 42-64.20-5 and 42-64.20-10 of the General Laws in Chapter 42-

64.20 entitled "Rebuild Rhode Island Tax Credit" are hereby amended to read as follows:

5 42-64.20-5. Tax credits.

(a) An applicant meeting the requirements of this chapter may be allowed a credit as set

forth hereinafter against taxes imposed upon such person under applicable provisions of title 44 of

the general laws for a qualified development project.

(b) To be eligible as a qualified development project entitled to tax credits, an applicant’s

chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the

time of application, that:

(1) The applicant has committed a capital investment or owner equity of not less than

twenty percent (20%) of the total project cost;

(2) There is a project financing gap in which after taking into account all available private

and public funding sources, the project is not likely to be accomplished by private enterprise

without the tax credits described in this chapter; and

(3) The project fulfills the state’s policy and planning objectives and priorities in that:

(i) The applicant will, at the discretion of the commerce corporation, obtain a tax

stabilization agreement from the municipality in which the real estate project is located on such

terms as the commerce corporation deems acceptable;

(ii) It (A) Is a commercial development consisting of at least 25,000 square feet occupied

by at least one business employing at least 25 full-time employees after construction or such

additional full-time employees as the commerce corporation may determine; (B) Is a multi-family

residential development in a new, adaptive reuse, certified historic structure, or recognized

historical structure consisting of at least 20,000 square feet and having at least 20 residential units

in a hope community; or (C) Is a mixed-use development in a new, adaptive reuse, certified historic

structure, or recognized historical structure consisting of at least 25,000 square feet occupied by at

least one business, subject to further definition through rules and regulations promulgated by the

commerce corporation; and

(iii) Involves a total project cost of not less than $5,000,000, except for a qualified

development project located in a hope community or redevelopment area designated under § 45-

32-4 in which event the commerce corporation shall have the discretion to modify the minimum

project cost requirement.

(4) Until July 1, 2025, pursuant to P.L. 2022 ch. 271 and P.L. 2022 ch. 272, for construction

projects in excess of ten million dollars ($10,000,000), all construction workers shall be paid in

accordance with the wages and benefits required pursuant to chapter 13 of title 37 with all

contractors and subcontractors required to file certified payrolls on a monthly basis for all work

completed in the preceding month on a uniform form prescribed by the director of labor and

training. Failure to follow the requirements pursuant to chapter 13 of title 37 shall constitute a

material violation and a material breach of the agreement with the state. The commerce corporation,

in consultation with the director of labor and training and the tax administrator, shall promulgate

such rules and regulations as are necessary to implement the enforcement of this subsection. The

provisions of this subsection shall expire and sunset on July 1, 2025.

(5) Notwithstanding any general or special law or rule or regulation to the contrary, for

construction projects that have executed a tax credit agreement on or after July 1, 2025, and

involving a budget of direct hard construction costs (as defined in § 44-33.6-2) in excess of twenty-

five million dollars ($25,000,000), all construction workers shall be paid in accordance with the

wages and benefits required pursuant to chapter 13 of title 37 with all contractors and

subcontractors required to file certified payrolls on a monthly basis for all work completed in the

preceding month on a uniform form prescribed by the director of labor and training. Failure to

follow the requirements pursuant to chapter 13 of title 37 shall constitute a material violation and

a material breach of the agreement with the state. The commerce corporation, in consultation with

the director of labor and training and the tax administrator, shall promulgate such rules and

regulations as are necessary to implement the enforcement of this subsection.

(c) The commerce corporation shall develop separate, streamlined application processes

for the issuance of rebuild RI tax credits for each of the following:

(1) Qualified development projects that involve certified historic structures;

(2) Qualified development projects that involve recognized historical structures;

(3) Qualified development projects that involve at least one manufacturer; and

(4) Qualified development projects that include affordable housing or workforce housing.

(d) Applications made for a historic structure or recognized historic structure tax credit

under chapter 33.6 of title 44 shall be considered for tax credits under this chapter. The division of

taxation, at the expense of the commerce corporation, shall provide communications from the

commerce corporation to those who have applied for and are in the queue awaiting the offer of tax

credits pursuant to chapter 33.6 of title 44 regarding their potential eligibility for the rebuild RI tax

credit program.

(e) Applicants (1) Who have received the notice referenced in subsection (d) above and

who may be eligible for a tax credit pursuant to chapter 33.6 of title 44; (2) Whose application

involves a certified historic structure or recognized historical structure; or (3) Whose project is

occupied by at least one manufacturer shall be exempt from the requirements of subsections

(b)(3)(ii) and (b)(3)(iii). The following procedure shall apply to such applicants:

(i) The division of taxation shall remain responsible for determining the eligibility of an

applicant for tax credits awarded under chapter 33.6 of title 44;

(ii) The commerce corporation shall retain sole authority for determining the eligibility of

an applicant for tax credits awarded under this chapter;

(iii) The commerce corporation shall not award in excess of fifteen percent (15%) of the

annual amount authorized in any fiscal year to applicants seeking tax credits pursuant to this

subsection (e); and

(iv) No tax credits shall be awarded under this chapter unless the commerce corporation

receives confirmation from the department of labor and training that there has been compliance

with the prevailing wage requirements set forth in subsection (b) of this section.

(f) Maximum project credit.

(1) For qualified development projects, the maximum tax credit allowed under this chapter

shall be the lesser of (i) Thirty percent (30%) of the total project cost; or (ii) The amount needed to

close a project financing gap (after taking into account all other private and public funding sources

available to the project), as determined by the commerce corporation.

(2) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

exemptions allowed pursuant to this chapter, shall not exceed fifteen million dollars ($15,000,000)

for any qualified development project under this chapter; except as provided in subsection (f)(3) of

this section; provided however, any qualified development project that exceeds the project cap upon

passage of this act shall be deemed not to exceed the cap, shall not be reduced, nor shall it be further

increased. No building or qualified development project to be completed in phases or in multiple

projects shall exceed the maximum project credit of fifteen million dollars ($15,000,000) for all

phases or projects involved in the rehabilitation of the building. Provided, however, that for

purposes of this subsection and no more than once in a given fiscal year, the commerce corporation

28 may consider the development of land and buildings by a developer on the “I-195 land” as defined

in § 42-64.24-3(6) as a separate, qualified development project from a qualified development

project by a tenant or owner of a commercial condominium or similar legal interest including

leasehold improvement, fit out, and capital investment. Such qualified development project by a

tenant or owner of a commercial condominium or similar legal interest on the I-195 land may be

exempted from subsection (f)(1)(i) of this section.

(3) The credit allowed pursuant to this chapter, inclusive of any sales and use tax

exemptions allowed pursuant to this chapter, shall not exceed twenty-five million dollars

($25,000,000) for the project for which the I-195 redevelopment district was authorized to enter

into a purchase and sale agreement for parcels 42 and P4 on December 19, 2018, provided that

project is approved for credits pursuant to this chapter by the commerce corporation.

(4) For qualified development projects involving the development of housing and mixed

use projects involving housing which are restricted to require at least twenty percent (20%) of the

housing units being affordable housing or workforce housing development for residents making no

more than between eighty percent (80%) and one hundred twenty percent (120%) of the area

median income (AMI) shall be allowed sales and use tax exemptions of up to thirty percent (30%)

of the maximum project credit in addition to the maximum project credit of fifteen million dollars

($15,000,000) pursuant to this chapter. Any sales and use tax exemptions allowed in addition to the

maximum project credit shall be for purchases made by June 30, 2028.

(g) Credits available under this chapter shall not exceed twenty percent (20%) of the project

cost, provided, however, that the applicant shall be eligible for additional tax credits of not more

than ten percent (10%) of the project cost, if the qualified development project meets any of the

following criteria or other additional criteria determined by the commerce corporation from time

to time in response to evolving economic or market conditions:

(1) The project includes adaptive reuse or development of a recognized historical structure;

(2) The project is undertaken by or for a targeted industry;

(3) The project is located in a transit-oriented development area;

(4) The project includes residential development of which at least twenty percent (20%) of

the residential units are designated as affordable housing or workforce housing;

(5) The project includes the adaptive reuse of property subject to the requirements of the

industrial property remediation and reuse act, § 23-19.14-1 et seq.; or

(6) The project includes commercial facilities constructed in accordance with the minimum

environmental and sustainability standards, as certified by the commerce corporation pursuant to

Leadership in Energy and Environmental Design or other equivalent standards.

(h) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter,

inclusive of any sales and use tax exemptions allowed pursuant to this chapter, shall not exceed

two hundred twenty-five million dollars ($225,000,000) two hundred fifty million dollars

($250,000,000) , excluding any tax credits allowed pursuant to subsection (f)(3) of this section.

(i) Tax credits shall not be allowed under this chapter prior to the taxable year in which the

project is placed in service.

(j) The amount of a tax credit allowed under this chapter shall be allowable to the taxpayer

in up to five, annual increments; no more than thirty percent (30%) and no less than fifteen percent

(15%) of the total credits allowed to a taxpayer under this chapter may be allowable for any taxable

year.

(k) If the portion of the tax credit allowed under this chapter exceeds the taxpayer’s total

tax liability for the year in which the relevant portion of the credit is allowed, the amount that

exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for

the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed

to a partnership, a limited liability company taxed as a partnership, or multiple owners of property

shall be passed through to the persons designated as partners, members, or owners respectively pro

rata or pursuant to an executed agreement among persons designated as partners, members, or

owners documenting an alternate distribution method without regard to their sharing of other tax

or economic attributes of such entity.

(l) The commerce corporation, in consultation with the division of taxation, shall establish,

by regulation, the process for the assignment, transfer, or conveyance of tax credits.

(m) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer

for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from

taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller’s tax calculation

for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds,

without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a

natural person, the seller’s tax calculation under chapter 11, 13, 14, or 17 of title 44, as applicable,

for the year of revocation, or adjustment, shall be increased by including the total amount of the

sales proceeds without proration.

(n) The tax credit allowed under this chapter may be used as a credit against corporate

income taxes imposed under chapter 11, 13, 14, or 17 of title 44, or may be used as a credit against

personal income taxes imposed under chapter 30 of title 44 for owners of pass-through entities such

as a partnership, a limited liability company taxed as a partnership, or multiple owners of property.

(o) In the case of a corporation, this credit is only allowed against the tax of a corporation

included in a consolidated return that qualifies for the credit and not against the tax of other

corporations that may join in the filing of a consolidated tax return.

(p) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem

this credit, in whole or in part, for ninety percent (90%) of the value of the tax credit. The division

of taxation, in consultation with the commerce corporation, shall establish by regulation a

redemption process for tax credits.

(q) Projects eligible to receive a tax credit under this chapter may, at the discretion of the

commerce corporation, be exempt from sales and use taxes imposed on the purchase of the

following classes of personal property only to the extent utilized directly and exclusively in the

project: (1) Furniture, fixtures, and equipment, except automobiles, trucks, or other motor vehicles;

or (2) Other materials, including construction materials and supplies, that are depreciable and have

a useful life of one year or more and are essential to the project.

(r) The commerce corporation shall promulgate rules and regulations for the administration

and certification of additional tax credit under subsection (g), including criteria for the eligibility,

evaluation, prioritization, and approval of projects that qualify for such additional tax credit.

(s) The commerce corporation shall not have any obligation to make any award or grant

any benefits under this chapter.

11 42-64.20-10. Sunset.

12 No credits shall be authorized to be reserved pursuant to this chapter after December 31,

13 2026 December 31, 2027 .

14 SECTION 9. Section 42-64.21-9 of the General Laws in Chapter 42-64.21 entitled "Rhode

15 Island Tax Increment Financing" is hereby amended to read as follows:

16 42-64.21-9. Sunset.

17 The commerce corporation shall enter into no agreement under this chapter after December

18 31, 2026 December 31, 2027 .

19 SECTION 10. Section 42-64.22-15 of the General Laws in Chapter 42-64.22 entitled "Tax

20 Stabilization Incentive" is hereby amended to read as follows:

21 42-64.22-15. Sunset.

22 The commerce corporation shall enter into no agreement under this chapter after December

23 31, 2026 December 31, 2027 .

24 SECTION 11. Section 42-64.23-8 of the General Laws in Chapter 42-64.23 entitled "First

25 Wave Closing Fund" is hereby amended to read as follows:

26 42-64.23-8. Sunset.

27 No financing shall be authorized to be reserved pursuant to this chapter after December 31,

28 2026 December 31, 2027 .

SECTION 12. Section 42-64.24-8 of the General Laws in Chapter 42-64.24 entitled "I-195

Redevelopment Project Fund" is hereby amended to read as follows:

31 42-64.24-8. Sunset.

No funding, credits, or incentives shall be authorized or authorized to be reserved pursuant

to this chapter after December 31, 2026 December 31, 2027 .

SECTION 13. Section 42-64.26-12 of the General Laws in Chapter 42-64.26 entitled "Stay

1 Invested in RI Wavemaker Fellowships" is hereby amended to read as follows:

2 42-64.26-12. Sunset.

3 No incentives or credits shall be authorized pursuant to this chapter after December 31,

4 2026 December 31, 2027 .

5 SECTION 14. Section 42-64.27-6 of the General Laws in Chapter 42-64.27 entitled "Main

6 Street Rhode Island Streetscape Improvement Fund" is hereby amended to read as follows:

7 42-64.27-6. Sunset.

8 No incentives shall be authorized pursuant to this chapter after December 31, 2026

9 December 31, 2027 .

10 SECTION 15. Section 42-64.28-10 of the General Laws in Chapter 42-64.28 entitled

11 "Innovation Initiative" is hereby amended to read as follows:

12 42-64.28-10. Sunset.

13 No vouchers, grants, or incentives shall be authorized pursuant to this chapter after

14 December 31, 2026 December 31, 2027 .

15 SECTION 16. Section 44-48.3-14 of the General Laws in Chapter 44-48.3 entitled "Rhode

16 Island New Qualified Jobs Incentive Act 2015" is hereby amended to read as follows:

17 44-48.3-14. Sunset.

18 No credits shall be authorized to be reserved pursuant to this chapter after December 31,

19 2026 December 31, 2027 .

SECTION 17. Chapter 46-15.1 of the General Laws entitled "Water Supply Facilities" is

hereby amended by adding thereto the following section: