Federal and state tax credits help to stimulate private investment and create jobs. They support the creation and improvement of rental housing. Tax credits can restore buildings and jump start revitalization in Vermont communities. Successful projects range from modest renovations in small centers to multimillion-dollar downtown redevelopments.
In FY2024, $4.35 Million in state income tax credits are available. Credits are awarded to projects that improve building safety, attract new business, and create jobs. Projects must be within a state-designated downtown, village center, or neighborhood development area. Funding supports general rehabilitation and code compliance work. The program also funds flood mitigation upgrades and exterior façade improvements.
Applications for the next round of tax credits will be announced in the spring of 2024 and will be due July 1, 2024.
2024 Downtown and Village Center Tax Credits: Guidelines and Application - Coming Soon
View our 2023 Applicant Webinar. It includes basic program information and covers the program's scoring criteria. It also discusses sample application responses and covers information about required attachments.
- State Tax Credit Project Map
- FY2024 Tax Credit Project Summaries
- State Tax Credit Annual Report
- Federal Tax Credit Annual Report
What is a tax credit?
While not cash or a grant, tax credits redirect income taxes owed to help pay construction bills. For example, if your tax bill is $10,000, a $4,000 tax 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 credits: Available for eligible historic commercial buildings. These are income-producing buildings, listed in the National Register of Historic Places. Not sure if your building is eligible? Email email@example.com or call 802-828-3047.
- State Downtown & Village Center tax credits: Available for eligible commercial properties. Buildings must be over 30 years old. Private residences are not eligible but rental properties are. Non-profits may also apply. Projects must be within a designated downtown, village center or neighborhood development area. Find out if your building is eligible by entering the street address in the Vermont Planning Atlas. You can also email firstname.lastname@example.org to find out if your property qualifies.
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. View our Tax Credit Matrix for a snapshot of credits available. Both programs are designed to enhance the historic character of Vermont. To do this we use the Secretary of the Interior’s Standards for Rehabilitation. Program staff are available to discuss how these standards apply to individual projects. To schedule a site visit, email email@example.com or call 802-828-3047.