Downtown and Village Center State Tax Credits
The state tax credits are targeted at general rehabilitation
work, code compliance work, and exterior improvements to the
façade of buildings. It is expected that any changes
to buildings will respect the historic character of the Designated
Downtown or Village Center district.
Applicants may request the tax credit allocation in the form
of a bank credit certificate that a bank may accept in return
for cash, or for adjustments to the rate or term of the applicant’s
mortgage or loan related to an ownership or leasehold interest
in the qualified building.
Standard Tax Credit Provisions
•Buildings must constructed before 1983 and be located
within the boundary of a Designated Downtown or Designated
Village Center;
• Government and religious buildings, as well as single
family residences, are not eligible;
• A minimum expenditure of $5,000 must be made; and
• Only one application may be made for a building during
any 2 year period
Historic Buildings Tax Credit
A state tax credit of 10% for owners or long term lessees
for the costs of substantially rehabilitating a certified
historic building is available as an "add-on" credit
for projects that qualify for the 20% Federal Reinvestment
Tax Credit (RITC). Projects qualifying for the 10% credit
will thus receive a net 30% credit. The federal RITC is available
to owners and long term lessees for projects costs that meet
or exceed the adjusted basis of an income-producing building
that is on or becomes listed on the National Register of Historic
Places. The credits are for all costs involved in rehabilitating
a building, including exterior and interior improvements,
code compliance, plumbing, and electrical upgrades. Design
standards apply to this program, refer to the application
guidelines for details or call 802-828-3047
Façade Improvement Tax Credit
A state tax credit of 25% for owners or lessees of buildings
built prior to 1983 that undertake projects that cannot qualify
for the 20% Federal RITC and 10% State "add-on"
credit above. Up to a maximum of $25,000 Design standards
apply to this program, refer to the application guidelines
for details or call 802-828-3047
s your building located in a designated downtown?
Click here
for the communities in Vermont with designated downtown districts.
Click here
for the list of designated village centers. Contact your local
organization to see if your property is located within the
boundaries of the district. Application guidelines are available
online or by contacting the Division for Historic Preservation.
How to Apply and Further Information
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