Program overview:
The Vermont Downtown and Village Tax Credit offers the following:
- Code: 50 percent of qualified expenditures for income-producing property built before 1983 located within a Downtown or Village Center District.
- Historic: 10 percent of qualified expenditures for an approved federal 20 percent application and a building located within a Downtown or Village Center District.
- Facade: 25 percent of qualified expenditures for income-producing property built before 1983 and located within a Downtown or Village Center District.
Annual cap: $2.4 million.
Program details:
- Per-project cap:
- Code: $50,000 for the sprinkler, $50,000 for the elevator, $12,000 for a lift, $25,00 for other code requirements. If eligible, the credit may be combined with the 10 percent historic on OR 25 percent façade credit, but not both.
- Historic: 10 percent on the first $500,000 and half the costs exceeding $500,000. Credit may be used in combination with the 50 percent code credit only.
- Facade: $25,000 Credit may be used in combination with the 50 percent code credit only.
- Carry forward: 9 years.
- Recapture: same as federal.
- Combination of credits is possible, up to 70%.
- Selection criteria are applied to ensure credits are allocated to projects that provide the most public benefit.
- Projects must be finished within 5 years of date of allocation.
- If within 5 years after the date of the credit allocation to the applicant no claim for tax credit has been filed, the tax credit allocation shall be rescinded.
- Credit can only be “sold” to Vermont-based banks or insurance companies.
Important links:
