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The
Renewal Community (RC) is a federally-designated area with special
business tax incentives to encourage economic development. In
Burlington, it includes the Old End and Downtown area of the City.
The boundaries are Willard Street on the east, the Intervale railroad
spur on the north, Lake Champlain on the west, and King and Main Streets
on the south. If you want to see if you are located in the Renewal
Community, you can view a
larger map and/or check the
street
address list.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 through 2009 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: This 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 provided so far. You can also contact Bruce Seifer at 802·865·7179 or contact your tax advisor. |
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Page last updated July 06, 2009
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