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Suppose you own (or are looking at purchasing)
a 75-year old historic downtown commercial building with:
- Inaccessible, vacant upper floors
- Possible soil contamination
- High utility bills
- $1 million adjusted basis
- Estimated $1 million rehab costs
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Here are some possible resources:
| Program |
Possible Uses |
Possible Savings |
| Brownfields:
Financial and technical assistance for assessing contamination |
Environmental Site Assessment |
$5,000 payment for cost of assessment |
| Vermont Underground Storage Tank Program: Reimbursement
for costs of removing USTs after $10,000 "deductible" |
Pull UST and clean up dirt |
$15,000 reimbursement |
| Brownfields Deduction: Deduct qualified environmental
clean-up costs |
Pull UST and clean up dirt |
$10,000 federal deduction |
| Commercial Revitalization
Deduction:
Accelerated depreciation allows deduction of either ½ of qualified
revitalization expenditures in the first year or all such expenditures
pro rata over 10 years |
Building renovation / construction |
$500,000 federal deduction in year one (with remaining
$500,000 spread over next 38 years) or $100,000 in each of first ten
years |
| Designated
Downtown Program: Up to 30% in combined federal & state tax
credits for historic buildings |
Building renovation |
$200,000 federal credit
$100,000 state credit |
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Federal Disabled Access Credit: A credit up to 50% of
eligible access expenditures to a maximum of $5,000 |
Install an elevator |
$5,000 federal credit |
| Designated
Downtown Program: A 50% credit for constructing elevators, lifts
and/or sprinkler systems |
Install an elevator |
$25,000 state credit |
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BED's
Commercial Construction Program: Consultants, payment for
engineering/design services, other technical/financial assistance |
Energy-efficient HVAC and lighting systems |
30% lower utility bills, $20,000 direct subsidy and
2-yr. payback |
These are just hypothetical examples - your actual savings could be less or
more, depending on your project, its costs and other variables. But it's
usually worth looking at a combination of possible local, state and federal
resources.
For more information, contact Bruce
Seifer at 802·865·7179 or bseifer@ci.burlington.vt.us.
Page last updated
July 06, 2009
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