Doing Business in Burlington:  Renewal Community
 

Your business is in the RC?  So what?

Renewal Community designation offers a number of new federal tax incentives, including:

Wage Credit: Businesses can take a credit against Federal taxes of up to $1,500 each year for 8 years for every existing employee and new hire who lives and works in the Renewal Community

Increased Section 179 Deduction: Businesses that qualify as Renewal Community Businesses can claim up to $35,000 in additional expensing for certain depreciable property (such as qualified equipment and machinery) purchased after 1/1/2002

Commercial Revitalization Deduction: Provides an accelerated deduction period for commercial real estate for qualified projects in the Renewal Community involving new construction or substantial rehabilitation.  You must apply to the City in order to use this deduction.  You can view the CRD Allocation Plan.

Zero Percent Capital Gains Rate: Owners of qualifying Renewal Community assets do not have to pay federal tax on any gain when they sell the assets.

How can I find out more about Renewal Community benefits?

You can access the Tax Incentive Guide for Businesses in the Renewal Communities online at HUD’s web site. You can access IRS Publication 954 (Guide to Tax Incentives for Empowerment Zones and Other Distressed Communities) online at the Internal Revenue Service website.  Once there you can also e-mail tax questions to the Internal Revenue Service or you can call HUD for more information at 202-708-6339. 

You can see a list of some of the questions gathered so far, with the answers received so far.  You can also contact Bruce Seifer at 802·865·7179 or contact your tax advisor.