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.
In January 2023, $800,000 in additional state income tax credits are available to projects that enhance the historic character and improve building safety of older and historic commercial and community buildings in these designated communities. The credits support general rehabilitation work, code compliance, and facade improvements, and may be combined with the federal program. Applications for this special bonus round of tax credits are due Monday, January 16, 2023, and the Vermont Downtown Board will make its allocation decisions by mid-February.
View our Applicant Webinar which includes basic program information, reviews the program's scoring criteria which is used to evaluate and score applications, discusses sample responses, and covers information about required attachments which must be submitted with every application.
- State Tax Credit Project Map
- 2023 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 essentially 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 are 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. Not sure if your building is listed or eligible for listing? Email Caitlin.Corkins@Vermont.gov or call 802-828-3047.
- State Downtown & Village Center tax credits are available for eligible commercial buildings and non-profit owned buildings over 30 years old (sorry, no private residences, but rental properties are eligible) located within designated downtown or village centers. Find out if your building is located within a designated downtown or village center by entering the building’s street address, or email Caitlin.Corkins@Vermont.gov 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 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@Vermont.gov or call 802-828-3047.