East Providence launches new live-work tax break to boost affordable housing

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East Providence has launched a new 'live/work' tax exemption that lets qualifying owner-occupied business properties be taxed partly at the lower residential rate, aiming to boost affordable housing and small-business ownership. The policy currently applies only to Ivy Place near City Hall, but city leaders and housing advocates hope it will spur more mixed-use, income-restricted developments across the city.

Why it matters

The new live-work tax break is an attempt by East Providence to address the city's affordable housing shortage by incentivizing the creation of mixed-use developments that combine residential and commercial spaces. This could help increase the supply of affordable housing units while also supporting small businesses.

The details

The live/work tax exemption allows qualifying owner-occupied business properties to be taxed partly at the lower residential rate, rather than the higher commercial rate. This is intended to make it more financially viable for developers to build mixed-use projects that include both affordable housing units and commercial spaces. The policy is currently only in effect for the Ivy Place development near City Hall, but city leaders and housing advocates hope it will encourage similar projects in other parts of East Providence.

• East Providence launched the new live-work tax exemption policy in 2026.

What’s next

City leaders and housing advocates will be monitoring the impact of the new live-work tax exemption policy at Ivy Place and determining whether to expand it to other areas of East Providence.