• Buildings must be 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 residence, 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

Contact: Division for Historic Preservation, 802-828-3047.

Historic Building Tax Credit
A state tax credit of 10% for owners or long term lessees for the cost 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.

Facade 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.

50% Code Improvements Tax Credit
A state credit of 50% for owners or lessee or a qualified building into compliance with state building codes, to abate hazardous materials, or to redevelop a contaminated property It includes a maximum award of $12,000 for a platform lift, $50,000 for sprinkler systems, $50,000 for elevators, and $25,000 for the combined costs of all other qualified code improvements, as well as costs for hazardous material abatement and contaminated sites redevelopment. This credit maybe be used in conjunction with the other two credits, as long as the applicant does not request credits more than once on an eligible expenditure (i.e. no double dipping). State or local building code inspection is required for this program, refer to the application guidelines for details or call 802-828-3047.

Sprinkler System Rebate
A rebate of up to $2,000 of the permit fees paid to the Department of Public Safety, Division of Fire Safety for installation of a complete automatic fire sprinkler system, if your project qualifies for one of the state building rehabilitation tax credits listed above.

Vermont Department of Public Safety, Division of Fire Safety, 802-828-2106


50% Tax Credit for Elevators, Platform Lifts and Sprinkler Systems
A 50% state income tax credit is available to property owners and lessees for installing or improving an elevator, platform lift or sprinkler system to meet building codes. The credits for an elevator or sprinkler system are each capped at $25,000, and $12,000 for a lift. Applicants who are eligible for the 50% federal Disabled Access Tax Credit www.usdoj.gov/crt/ada/taxpack/htm (many small businesses are) must subtract the first $10,000 in expenditures when applying for the state tax credit for either an elevator or a lift. Only one award may be made to any one building, but may include credits for each eligible category. An applicant may request the credit allocation in the form of a mortgage credit certificate that a bank may accept in return for adjusting the rate or term of the applicant's loan on the building.

Contact: Division for Historic Preservation, 802-828-3047

Act 250
The Act 250 threshold for reviewing "mixed income housing" and "mixed use" projects is eased from the current limit of 10 housing units. In a designated downtown, the new threshold is on a sliding scale that ranges from 20 units in a community with a population under 5,000, to 100 units in a community with a population over 20,000.

Contact: VT Environmental Board, 802-828-3309

Reallocation of Sales Tax on Construction Materials
Your town may receive a reallocation of sales taxes paid on construction materials used on qualified projects in the designated downtown, to be used in support of the qualified project. This benefit cannot be used in projects using state building rehab tax credits (see above).

Vermont Downtown Program, 802-828-3211

Employee Training Tax Credit
An employer can claim up to $400 in tax credits (per employee per calendar year) for training economically disadvantaged employees if the employer does business in a designated downtown with the intent of providing permanent employment. The employer must pay annualized wages of at least $14,000 plus benefits.

Vermont Department of Taxes, 802-828-2532

Technical Assistance
The Vermont Downtown Program can help property owners develop a strategy for the rehabilitation or adaptive reuse of downtown buildings. Contact: Vermont Downtown Program, 802-828-3211. The Department of Public Safety, Division of Fire Safety can help property owners who are rehabilitating older and historic buildings develop solutions to comply with access, life and safety codes.

Vermont Department of Public Safety, Division of Fire Safety 802-828-2106, or visit their website at www.dps.state.vt.us/fire/