Governor Phil Scott Announces $4M in Downtown and Village Center Tax Incentives

For Immediate Release
November 13, 2024

GOVERNOR PHIL SCOTT ANNOUNCES $4 MILLION IN DOWNTOWN AND VILLAGE CENTER TAX INCENTIVES
Winning projects will help generate over $160 million in building improvements and public infrastructure throughout the state.

Montpelier, Vt. - Governor Phil Scott and the Agency of Commerce and Community Development (ACCD) announced just over $4 million in funding for 13 rehabilitation and revitalization projects in 12 of Vermont's designated downtown and village centers. These awards will generate over $160 million in building improvements and public infrastructure around the state. Increased investment and program enhancements have been a critical lifeline for economic vitality, as well as for communities and businesses recovering from devastating floods.

"This program is one of the best examples of how federal and state tax incentives can work together to build lasting resilience for our communities and economy," said Governor Scott. "As we work to strengthen communities across the state, this program - and others that help with infrastructure and economic development - are essential."

In the past 10 years, the state tax credit program has leveraged over $28 million in federal rehabilitation tax credits-resulting in the creation and rehabilitation of 338 housing units and support for over 100 businesses in 24 downtowns and 248 village centers.

"The Community Investment Board was thrilled to support transformative projects this year in communities both large and small," said Department of Housing and Community Development Commissioner Alex Farrell. "This program is about more than just bricks and mortar-it's about addressing Vermont's most pressing challenges, from alleviating housing shortages to strengthening community resilience. However, with demand for projects now over twice the annual cap, the board regrettably could only fund 13 out of the 49 highly deserving applications. This unmet need underscores the pressing need for supporting projects that build housing and foster economic growth and resilience in every corner of the state."

In 2024, $4.1 million in tax credits will offset the costs of major investments in projects including:

• The Leonard Block, a vacant mixed-use commercial/residential building in Brattleboro, will be rehabilitated to provide 10 apartments and street-level commercial space. Tax credits will support mandated code upgrades as well as restoration of historic features, while improving the building's energy efficiency.
• The former Bennington High School will be redeveloped to provide 39 units of housing, with both affordable and market-rate units, along with a childcare facility and public meeting space. A state tax credit award will support flood mitigation measures and the building's sensitive historic rehabilitation.
• The Starksboro Meetinghouse and Starksboro Cooperative Pre-School are partnering to renovate this historic building's lower level to provide space for a growing childcare facility, increasing enrollment. State tax credits will support these code upgrades and façade repairs to the building's important historic features.
• Historically a hotel and rooming house, the Greenough Block in White River Junction will be rehabilitated to provide 12 apartments with a ground-floor commercial space. The work will ensure the preservation of the building's historic character. State tax credits will support required code upgrades and façade restoration.

For a complete list of projects visit the Department of Housing and Community Development website.