Downtown & Village Tax Credit
Federal and state rehabilitation tax credits stimulate private investment, create jobs, restore historic buildings and jump start the revitalization seen in Vermont’s Designated Downtowns and Village Centers. Projects range from small bed and breakfasts and rental apartments to multimillion dollar downtown redevelopments.
Read more to learn how tax credits can revitalize buildings and breathe new life into your community.
What’s 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 and the state government.
Does my building qualify?
Federal credits are limited to historic commercial buildings, meaning income-producing buildings, listed or eligible for listing on the National Register. (Many of Vermont's designated downtowns and villages are listed and pre-qualified for federal credits.) Please note: Downtown or village center designation adds state benefits on top of the federal credits, but does not qualify buildings for federal tax credits. Confused? Not sure if your building is listed or eligible for listing on the National Register, or located in a designated downtown or village center? Call or email Debra Sayers, 802-828-3213.
State tax credits are limited to commercial buildings constructed before 1983 (sorry, no private residences, but rental properties are eligible) located within designated downtown or village centers. Click here and enter the building’s street address to determine if your building is located within a designated downtown or village center.
What work qualifies?
The credits support general rehabilitation, code compliance, and exterior improvements and may be combined with the federal program. Both programs 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. To schedule a meeting, email Caitlin Corkins or call 802-828-3047.