State and Federal Tax Credits
This program offers tax credits to support the rehabilitation, safety upgrades, and flood mitigation of historic and older buildings in Vermont’s designated downtowns and village centers.
Funder: Vermont Agency of Commerce and Community Development
Due Dates: July 1, 2026
Funding Amounts: At least $3 million in state income tax credits available in FY2027; individual project awards typically range from ~$6,000 to over $1 million; maximum $1,000,000 per municipality per year.
Summary: Supports rehabilitation, code compliance, and flood mitigation projects for historic and older buildings in Vermont’s designated downtowns and village centers via state and federal tax credits.
Key Information: Tax credits are not cash grants; they offset state income taxes owed for eligible expenses.
Description
The Downtown and Village Center Tax Credits program offers both state and federal tax credits to encourage private investment in the rehabilitation and improvement of buildings in Vermont’s designated downtowns and village centers. These credits support projects that enhance building safety, attract new businesses, create jobs, improve rental housing, and preserve Vermont’s historic character. Eligible projects include general rehabilitation, code compliance work, flood mitigation, and exterior façade improvements.
