Applications for the next round of Downtown and Village Center tax credits and the Sales Tax Reallocation Program are due June 30, 2017. Tax credits support general rehabilitation, code compliance, and exterior improvements. Here are the Guidelines and Application.
Federal and state rehabilitation tax credits help to stimulate private investment, create jobs, restore historic buildings and jump start the revitalization seen in Vermont’s Designated Downtowns and Village Centers. Successful projects range from small bed and breakfasts and rental apartments to multimillion dollar downtown redevelopments. To learn more about these programs or schedule a meeting, contact Caitlin Corkins at [email protected] or 802-828-3047.
What is a tax credit?
While not cash or a grant, tax credits essentially redirect income taxes owed to help pay the construction bills. For example, if your tax bill is $10,000, a $4,000 credit will reduce your tax bill to $6,000. Credits are available from both the federal government and the State of Vermont.
Does my building qualify?
- Federal Rehabilitation Investment tax creditsare available for eligible historic commercial buildings, meaning income-producing buildings, listed in the National Register of Historic Places. Many of Vermont’s designated downtowns and villages are listed and pre-qualified for federal credits.
- State Downtown & Village Center tax creditsare available for eligible commercial buildings and non-profit owned buildings constructed before 1983 (sorry, no private residences, but rental properties are eligible) located within designated downtown or village centers.
What work qualifies?
Federal and state tax credits support general rehabilitation, code compliance, and exterior improvements. In some cases, projects may be eligible for both the federal and state programs. Both programs are designed to enhance the historic character of Vermont and use the Secretary of the Interior’s Standards for Rehabilitation to assure changes are sensitive and appropriate. For specific advice on a project, staff is available to meet on site and discuss how the Standards apply to individual projects.
Downtown Sales Tax Reallocation Program
Municipalities and the developer of the qualified project may jointly apply to the Downtown Board for a reallocation of sales taxes on construction materials. Qualified projects must be located within a designated downtown district and may be eligible for a reallocation of sales taxes on construction materials. Reallocated taxes must be used by the municipality to support the qualified project.
Applications for State Sales Tax Reallocation credits are due June 30, 2017. Read our Guidelines and Application for more details.
Applications must be for qualified projects within a designated downtown. The Board will not consider projects that are substantially completed before designation is granted to the municipality.
- Applications may be submitted either just prior to the start of construction or during construction of the qualifying project, but not after construction has been substantially completed.
- The application must demonstrate that the qualified project will be under construction within 12 months of the award date, and that the municipal project must be completed within 30 months of the award date.