Vt. tax credits to aid downtown revitalization

A view in South Woodstock, Vt. (Gareth Henderson Photo)

Over two-dozen downtown projects in Vermont will get a boost in funding this year, thanks to a statewide tax incentive program. 

The state’s downtown and village center tax credits are supporting a total of 28 projects in 22 downtowns, meant to support local businesses, create new housing opportunities and incentivize investments that will improve Vermont’s community centers, state officials said in an announcement Thursday. Together, the projects receiving the credits represent $83 million in building and infrastructure upgrades statewide. 

Local partnerships will play an important role in the long-term vitality of Vermont’s downtowns, Gov. Phil Scott said in a statement.  

“Like so many aspects of our lives, neighborhoods and economy, Vermont’s downtowns and villages have been significantly impacted by the pandemic,” Scott said. “That is why it is inspiring to see so many Vermont companies, nonprofits and individuals committed to making significant investments for the future of their communities. This collaborative approach is part of the reason our Downtown Program is so successful.”

In southern and central Vermont, for example, these tax incentives — totaling $3.6 million — will support projects like the rehabilitation of a historic bank building in Chelsea for a new restaurant, the creation of retail space in Fairlee’s original post office, the renovation of the historic Richardson Building by the Paramount Theatre in Rutland, and brownfield remediation at two sites in Springfield with an eye toward future commercial space.

“The Downtown and Village Center tax credit program has remained popular, despite recent economic uncertainty,” said Josh Hanford, commissioner of the Vermont Department of Housing and Community Development. “The continued fierce competition for funding we see every year is a testament both to the effectiveness of the program, but also to the dedication of so many Vermonters who continue to invest in making the place they call home even better for their residents, businesses, and visitors.”

With support from the Vermont Legislature, the cap on these credits has been raised from $2.4 million to $3 million over the last five years.

Click here for a complete list of projects and cost details, and for more information about tax credits, visit the Agency of Commerce and Community Development online.

— Gareth Henderson