Construction on an extended-stay hotel in Providence is set to move forward after the Rhode Island Commerce Corporation voted to give the developer up to $4.8 million in taxpayer assistance over 20 years.

The agency's board of directors unanimously approved the tax incentive Monday to bring a Homewood Suites by Hilton to Providence's Capital Center Commission district.

First Bristol Corp.'s $24.5 million project is the first to take advantage of Rhode Island's new Tax Increment Financing program.

Under the program, the state will return tax revenue on each rented hotel room to the developer for up to 20 years. First Bristol Corp. will use that money to pay off the principal and interest on a loan from the state to close the project's financial gap.