Douglas announces $1.8 million in downtown tax credits

Governor Jim Douglas has announced the allocation of $1.8 million in tax credits for 19 Vermont communities to assist in the renovation or repair of buildings in downtowns and village centers. At a ceremony at the fire-damaged Aldrich Block in Barre, the Governor announced the projects approved by the Downtown Development Board for Downtown and Village Center State Tax Credits.
‘These tax credits not only help invigorate Vermont’s economy, they help prevent devastating fires in our downtowns,’ Governor Douglas said. ‘In addition to supporting the redevelopment of older and historic buildings, these credits encourage the installation of sprinklers, elevators and other safety upgrades.’
The state tax credit program is available to older and historic buildings in designated downtowns and village centers, and is designed to work with the federal tax credit program to leverage a combined state-federal credit valued between 30 and 40 percent of eligible expenses.
‘These tax credits were a critical element in preserving this historic building,’ said Barre Mayor Thom Lauzon, who owns the Aldrich Block, which was heavily damaged in a Memorial Day fire that police say was intentionally set. ‘The insurance alone would not have covered the cost of restoration, and the building would likely have been sold or possibly demolished. These tax credits helped make saving the Aldrich Block economically feasible.’
The federal credits not only benefit the user, they boost state revenues from taxes on wages generated by new jobs and on sales of goods and services. ‘These projects help revitalize Vermont’s downtowns and village centers as well as preserve Vermont's historic buildings,’ the Governor noted. ‘This benefits our tourism industry; in 2007 the World Travel & Tourism Council in London chose Vermont’s downtowns as one of only three finalists for its Destination Stewardship awards, along with Australia’s Great Barrier Reef.’
To date, 23 downtowns and 99 village centers are designated and all older and historic buildings in these designated areas are eligible for these investment incentives.
To become a Designated Down town, communities must have both a downtown revitalization organization and demonstrate their commitment and capacity to support such a program, as well as meet several other requirements. Village Centers go through a similar, but abbreviated process. Designated communities become eligible to compete for funding for building rehabilitation and safety improvements, and transportation projects.
Source: Governor's office. 8.13.2010