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Downtown and

Village Center

Tax Credits

Guidelines and

Application

Vermont Department of Housing

and Community Development

2020

2020 Downtown and Village Center Tax Credit Program Guidelines

TABLE OF CONTENTS

Introduction .......................................................................................................................................... 1

Program Contact Information ............................................................................................................... 1

Description of Credits Available through the Program .......................................................................... 1

Program Eligibility and Standard Provisions ........................................................................................ 1

Preservation Standards and Design Considerations ............................................................................ 2

Staff Support and Site Visits ................................................................................................................ 3

Application Submission Instructions .................................................................................................... 3

Required Attachments ......................................................................................................................... 3

Scoring Process and Tiebreaker Policies............................................................................................. 4

Award Alternates ................................................................................................................................. 4

Using the Credits .............................................................................................................................. 4-5

Recapture Policies ............................................................................................................................... 5

Other Helpful Programs .................................................................................................................... 5-6

Appendix A – Program Scoring Criteria ............................................................................................... 7

Appendix B – Sample Credit Calculations ........................................................................................ 8-9

Appendix C – Secretary of the Interior’s Standards for Rehabilitation ................................................ 10

INTRODUCTION

The Downtown and Village Center tax credit program helps to stimulate private investment, create jobs,

restore buildings and jump start revitalization in Vermont communities. Successful projects range from small

bed and breakfasts and rental apartments to multimillion-dollar downtown redevelopments. In 2020,

$2,600,000 in state income tax credits are available to projects that enhance the historic character and

improve building safety of older and historic commercial buildings located in Designated Downtowns

Village Centers. Credits support general rehabilitation work, code compliance work, and exterior façade

improvements, and may be combined with the federal program. Applications are due July 1, 2020 by close

of business (4:30 pm). Contact program staff before the deadline to discuss any delays in submitting

application materials due to the Covid-19 Pandemic.

PROGRAM CONTACT INFORMATION

For questions regarding this program, contact: Caitlin Corkins, Tax Credits & Grants Coordinator at:

caitlin.corkins@vermont.gov

or by phone at 802-828-3047.

Mailing Address:

Department of Housing and Community

Development One National Life Drive

Davis Building, 6th Floor

Montpelier, VT 05620-0501

DESCRIPTION OF CREDITS AVAILABLE THROUGH THE PROGRAM

10% Historic Tax Credit:

Available only for approved Federal Rehabilitation Tax Credit projects. This credit is not capped; however, the

first $500,000, and half of the costs exceeding $500,000, are eligible for the credit. Work must meet the

Secretary of the Interior’s Standards for Rehabilitation (see Appendix C).

25% Façade Improvement Tax Credit:

Available for exterior repairs and/or improvements to the front (public) façade of a qualified building. Up to

$100,000 in eligible costs for a maximum of $25,000 in credits is available. Projects eligible for the 10% historic

credit above are ineligible for façade credits. Work must meet the Secretary of the Interior’s Standards for

Rehabilitation (see Appendix C).

50% Code Improvement Tax Credit:

Available for investments made to bring buildings into compliance with current building codes. Credit

allocations are up to $75,000 for elevators, up to $50,000 for sprinkler systems, up to $60,000 for limited

use/limited application elevators (LULAs) and up to $12,000 for lifts. Other code work to meet ADA

requirements, electrical or plumbing codes, and the abatement of hazardous substances like lead paint and

asbestos is eligible for a credit allocation of up to $50,000 for the combined costs of these improvements.

Code credit projects must be inspected by state code officials or, where authorized, a municipal fire marshal or

building inspector.

PROGRAM ELIGIBILITY AND STANDARD PROVISIONS

• Eligible Applicant: Owners or lessees of a qualified building may apply for credits, including

non-profit organizations. Federal, state and local governments are not eligible for tax credits.

• Eligible Building: Buildings at least 30 years old at the time of application, located within a Designated

Downtown or Village Center, and not used as a single-family residence.

• Minimum Expenditure: Total project costs must exceed $5,000 for any of the tiers of credits to apply.

• Application Time Frames: Applicants are encouraged to apply before work begins; however, they

may apply for work that is underway. Projects completed before July 1, 2020 are not eligible.

• Combining Credits: The 10% historic and 25% façade improvement credits may not be used on the

same project. The 50% code improvement credit may be combined with either the 10% historic or 25%

façade improvement credit, provided the applicant does not claim credits more than once on any

eligible expenditure. Applicants intending to use more than one category of credits must do so on a

single application.

2020 Downtown and Village Center Tax Credit Guidelines and Application

• Maximum Amount: Projects within a single municipality may not receive more than $780,000 in tax

credits per fiscal year (30% of the total cap).

• Limitations: Buildings receiving tax credits are ineligible for additional tax credits for two years from

the date of the initial allocation. The sales tax reallocation program for Designated Downtowns may

not be combined with any of the tax credits on the same project.

PRESERVATION STANDARDS AND DESIGN CONSIDERATIONS

Projects funded through this program must meet the Secretary of the Interior Standards for Rehabilitation (see

Appendix C). The Downtown Board assumes that some alteration of older or historic buildings will occur to

provide for contemporary use. However, the project must not damage, destroy, or cover materials or features

that help define a building’s historic character. Projects using inappropriate man-made materials, that include

incompatible window replacements, or that damage, destroy or obscure historic features are ineligible for tax

credits. General design guidance is provided below.

• Storefront Alterations: Historic storefronts should be repaired when possible. Where historic

storefronts were previously altered beyond recognition or are missing entirely, new storefronts should

be contemporary, but compatible. Justify changes to storefronts and provide photographs of areas to

be altered. Information should be provided on when the existing storefront was constructed; what the

existing physical conditions are; and, if a historical treatment is planned, on what evidence the

proposed new storefront designs are based. Storefront changes that alter the character of the structure

and its relationship with the street or that destroy historic materials may result in a project being

ineligible for tax credits.

• New Windows: When historic windows exist, they should be repaired when possible. If they are

beyond reasonable repair, replacement windows must match the design, visual qualities, and

materials of the historic window. The quality of the match on street-facing sides of the building is more

important than the match on an obscured rear or side elevation. Installation of vinyl replacement

windows or inappropriate windows disqualifies an applicant from tax credits.

• Interior Partitions and Finishes: When storefront alterations affect interior partitions, indicate the

existing condition of the interior area to be affected and document it with photographs. Show which

walls are to be removed or altered and note whether existing trim elements will be affected. Projects

should not change floor plans unnecessarily or expose masonry or structural members unless this

condition is supported by historic evidence.

• Exterior Masonry Repair: Owners are encouraged to re-point only those portions of the masonry that

require repair. If determined necessary, indicate deteriorated areas that require repair and provide

evidence that re- pointing mortar will match the original in composition (i.e., ratio of lime, cement, sand

and any additives, color, texture, and tooling.) Mortars with high percentage of Portland cement may

not be acceptable as they are too hard for many old bricks and cause the bricks to crumble or spall.

Specifications and re-pointing samples should be reviewed and approved before proceeding with this

work.

• Exterior Masonry Cleaning: Masonry should only be cleaned to halt deterioration or to remove graffiti

and stains. If cleaning is necessary, is must be done using the gentlest means possible without

damaging the surface of the masonry and in accordance with the guidance found in

Preservation Brief

1, The Cleaning and Waterproof Coating of Masonry Buildings. Specifications and test cleaning

samples should be reviewed and approved before proceeding with this work.

• New Additions and New Construction: New exterior additions may alter the appearance and form of

historic buildings and may make projects ineligible. Similarly, new construction, including site work,

may affect the relationship of a building to its site or otherwise damage the historic character of the

property. Applicants should consult with Downtown Program staff before undertaking projects involving

additions.

• Non-Historic Building Renovations: Work on buildings that are not historic does not need to

meet the Standards. However, work completed should be compatible with the surrounding

district. Applicants are encouraged to consult with Downtown Program staff in advance.

2020 Downtown and Village Center Tax Credit Guidelines and Application

STAFF SUPPORT AND SITE VISITS

• Staff Support: Design guidance is general in nature because no single project is alike. For specific

advice on proposed changes, staff from the Downtown Program is available to meet on site and

discuss how the Secretary of the Interior’s Standards for Rehabilitation apply to individual projects. In

most instances, code work can be done without removing or damaging historic interior or exterior

features or materials. Downtown Program staff can assist owners with appropriate solutions to

common life safety and accessibility issues in historic buildings.

• Site Visits: To schedule a meeting, email Caitlin Corkins at caitlin.corkins@vermont.gov or call 802-

828-3047. Depending on your community, you will also need to work with the Department of Public

Safety or a locally designated Fire Marshal and/or Building Inspector. Scheduling a joint meeting

with state or local code officials and Downtown Program staff is the best way for applicants to

identify appropriate design options that protect both life and safety and a building’s historic

character.

APPLICATION SUBMISSION INSTRUCTIONS

Applications are due July 1, 2020 by close of business (4:30 pm). Applications should be submitted

electronically to Caitlin Corkins at caitlin.corkins@vermont.gov.

Faxed applications are not accepted;

however, applications may be submitted in hard copy by mailing them to the address listed on page 1. If you

are not able to gather required attachments due to the Covid-19 Pandemic, contact program staff to

discuss possible extensions.

Please note: The Downtown Board will not consider incomplete applications, applications with missing

attachments, or projects that do not meet the Standards for Rehabilitation.

REQUIRED ATTACHMENTS

1. Applicants must attach at least 1-2 images that show the front of the project building. E-mail digital files

to Caitlin Corkins at caitlin.corkins@vemont.gov

with the property address and view as the name of the

file, (e.g., 122 Main Street, SW.jpg).

2. For 10% Historic Credits, applicants must supply a Part 2 Certification from the National Park Service

indicating a federal Rehabilitation Investment Tax Credit application has been submitted and

approved. Applicants should work with program staff to ensure the federal application is submitted

well in advance so that approval will be in hand at the time of application.

3. For 25% Façade Credits, applicants must submit additional photographs that clearly show all sides of

the building and its setting on the street before construction. Applicants should also include plans,

sketches and/or annotated photographs sufficiently detailed to show existing wall configurations and

anticipated changes to the building, such as elevations or floor plans. Photographs and plans should

be labeled with the property address and the view (e.g., 122 Main, SW elevation).

4. For 50% Code Credit applicants, provide evidence that you have met on site with a building inspector

from the Division of Fire Safety at the Department of Public Safety

or, where authorized, a municipal

fire marshal or building inspector to discuss the specific code requirements of the project. Typically, the

state or municipal code official documents site visits in a letter that identifies the work required to bring

the building into compliance. This letter is required with the application as it assures a final code

inspection and code compliance.

Note: If the project involves Brownfield Mitigation, you must additionally provide evidence that the

project is enrolled in the BRELLA program and has an approved Corrective Action Plan from the

Agency of Natural Resources.

2020 Downtown and Village Center Tax Credit Guidelines and Application

SCORING PROCESS AND TIEBREAKER POLICIES

In 2020, applications are due July 1, 2020 and allocation decisions will be made by the Downtown

Development Board (Downtown Board) at their regularly scheduled monthly meeting on July 20, 2020.

Projects selected for funding must be completed and the applicant must claim the tax credit within three

years from the date of this allocation.

• Selection Criteria: Tax credits are competitively allocated. The Downtown Board ranks projects

using its Competitive Criteria (see Appendix A). Applications are reviewed and scored in advance

of the meeting with results compiled by Downtown Program Staff. Results are then ratified at the

July Board meeting.

• Funding Process and Minimum Score Requirement: Scores are tallied and ranked high to low.

Projects must score a minimum of 25 points (average derived from individual Board scores

divided by number of Board members scoring). Projects are typically funded in rank order until the

credits are exhausted; however, the Board may fund projects at its discretion.

• Tie-breaker Policy: The Board will first consider the geographic distribution of applications to be

funded above the tied projects in that round of funding. They will award a bonus point to break the

tie for projects in counties (first) and/or communities (second) with no other projects funded in the

same round of funding. Should geographic distribution fail to break a tie, the Board will consider

the number of previous tax credits awarded to a project and/or applicant. They will award a bonus

point to break the tie for a project and/or applicant who has not received funding through the

program in the past. Should the above criteria fail to break a tie, the remaining tax credit available

will be divided between tied projects based on the percentage of each request.

AWARD ALTERNATES

• During the annual July Board meeting, the Board will award funding as available. If requests

exceed funding, the Board will name 1-6 alternate projects. These will be those projects just below

the cut-off for available funds in that round.

• Should substantial funding equaling more than half an applicant’s tax credit request become

available after the July meeting but before the end of the same calendar year, that project will be

offered a full or partial tax credit of these recaptured funds. Alternate projects will be funded in rank

order. Any partially funded project will be offered recaptured funds to match their full request before

the next project on the list is offered a partial award. Projects that are complete and have collected

their tax credit award will not be offered additional recaptured funds even if their initial request was

only partially funded.

• If alternate projects are tied, staff may ask the Board to review applications of tied alternate

projects at a later Board meeting as funding becomes available, and to re-score alternate projects

using the same scoring criteria and then using the tie-breaker policy outlined above if necessary.

USING THE CREDITS

• Claiming the credits: Tax credits may be used in the first tax year in which the project or an

identifiable phase of the project is complete (i.e. code upgrades or a sprinkler system installed,

inspected and in service). A copy of an approved tax credit certificate is submitted with the first tax

return following project completion and may be carried forward on subsequent returns until the

credits are exhausted or up to a maximum of nine years.

• Bank or Insurance Credit Certificate: Applicants may request a credit allocation in the form of a

bank or insurance credit certificate. Banks or insurance companies may accept the certificate in

return for cash, or for adjustments to the rate or term of the applicant’s mortgage or loan, or

insurance premium related to an ownership or leasehold interest in the qualified building. Tax credit

2020 Downtown and Village Center Tax Credit Guidelines and Application

allocations may be converted into a credit certificate at any time following completion of the project;

however, the request must be in writing, show proof of project completion, and indicate the unused

credit balance. The dollar amount of the converted certificate is subject to the Tax Department’s

review and certification. To determine tax implications for sale of tax credits specific to your

circumstances, consult an accountant or tax attorney.

• Expiration of the Credits: Applicants forfeit their credits if they do not complete a project and

claim the tax credit within three years from the date of its allocation.

RECAPTURE POLICIES

Funding awarded through this program may be recaptured in the following situations:

• Sale of Property: the tax credit shall be recaptured should a property be sold before a project

awarded credits is completed. Once a project is complete and credits have been earned, there is

no penalty for sale or transfer of a property.

• Good Standing: the tax credit may be forfeited if it is determined a project or applicant is

not eligible following an initial award, or if information provided in the application is found to

be inaccurate.

• Project Inspection and Recapture: the State of Vermont reserves the right to make inspections at

any time up to five years after the completion of work and to recapture and/or reclaim from the

applicant the value of the credit, taken individually or via credit certificate for any of the following: if

it is determined information contained in this tax credit application was fraudulent; if work is not

completed or undertaken as presented in the application and supporting documentation; if further

alterations were made that do not meet the Secretary of the Interior’s Standards for Rehabilitation,

or if the property loses its federal “certified rehabilitation” status.

• Liability for Recapture: The applicant remains responsible for any recapture penalty even if the

credit is sold to a bank or insurance company or if the property is sold. If a property is sold,

applicants should ensure that subsequent owners understand this provision and may want to seek

legal advice.

OTHER HELPFUL PROGRAMS

• Federal Rehabilitation Investment Tax Credit (RITC): In addition to Vermont’s Downtown and

Village Center tax credits, there are unlimited 20% federal tax credits that can be combined with

the state credit to maximize return on investment. In the past ten years, over 160 Vermont

projects earned over $35 million in federal tax credits. To qualify for the federal credit, buildings

must be income producing (not a private residence), must be historic (listed or eligible for listing

in the National Register of Historic Places), and the new investment must exceed the building’s

adjusted basis. In addition, changes must comply with the Secretary of the Interior’s Standards

as determined by the National Park Service (see Appendix A). For additional information about

this program and to learn if your project qualifies, email Caitlin Corkins at

caitlin.corkins@vermont.gov

or call 802-828-3047.

• Federal Fire Sprinkler Incentive: Passed in 2018, the Fire Sprinkler Incentive is a limited-time

incentive that will allow the owners of commercial and residential structures to fully write off the full

cost of a new sprinkler system installed after September 27, 2017 until December 31, 2022.

• Federal Accessibility Incentives: There are two tax incentives available to businesses to help cover

the cost of making access improvements. The first is a tax credit that may be use for building

adaptations, equipment acquisitions, and services such as sign language interpreters. The second

is a tax deduction that can be used for building or transportation adaptations.

• Efficiency Vermont Incentives and Business Support: Vermont’s statewide energy efficiency utility,

2020 Downtown and Village Center Tax Credit Guidelines and Application

Efficiency Vermont invests time, money, and resources to help all Vermonters save energy. They

work with businesses of all sizes, across all industries, to provide energy services, incentives, and

personalized support to help businesses succeed. Contact our Adam or Allison at the business

customer service line at 855-317-2254 for more information.

• Vermont Department of Public Safety Rebate: Designated Downtown applicants awarded sprinkler

credits are eligible for a rebate of up to $2,000 on construction permit fees. The fees for the entire

construction project are eligible. To qualify for the rebate, the sprinkler system must be a complete

automatic fire sprinkler system installed according to Department of Public Safety rules; the system

must receive Department of Public Safety final acceptance testing and approval; the system must

be installed in a building located within a Designated Downtown district (Village Centers are

ineligible); and the applicant must provide a letter to the Department of Public Safety stating that the

building is located within a designated downtown. If in any year, applications exceed $40,000, the

Department of Public Safety shall grant rebates according to the date the building was awarded a

state tax credit, with the earlier date receiving priority. To apply for a rebate, or for more information,

contact either the manager of your regional Department of Public Safety, Division of Fire Safety

office or Nicole York at nicole.york@vermont.gov

or call 802-479-4434.

2020 Downtown and Village Center Tax Credit Guidelines and Application

APPENDIX A: PROGRAM SCORING CRITERIA

All applications are scored based on three scoring criteria that correspond to sections of the program

application. Projects must score a minimum of 25 points (average derived from individual Board scores

divided by number of Board members scoring) to receive funding.

1. Project Scope and Timeline: 0-7 points

Board members will refer to Section 5 of the application and consider the following questions.

a. Does the project scope clearly explain the work, uses, and outcomes of the project?

b. Is the project timeline feasible/realistic?

c. If applicable, are required permits in hand?

d. If the project is phased, are the phases logical and well-defined?

The following standards will be used to evaluate and score projects:

0-1 points

Poor: incomplete information, scope of project is not clear, permits are not identified

2-3 points

Fair: complete information, but scope of project is not well defined, or permits/approvals

needed are not identified

4-6 points

Good: information is complete, project scope is clear, and all permits/approvals are in

process

7 points

Excellent: scope of project is well defined, including applicable phases, and all

permits/approvals are in hand

2. Project Budget: 0-12 points

Board members will refer to Section 6 of the application and consider the following questions.

a. Is the proposed budget logical and well-conceived?

b. Does the budget match the scope of the project?

c. Is the project based on credible construction costs?

d. Will a state tax credit award leverage other private/public funding?

e. Is there a financial gap and if so, will the credit allow the project to proceed?

The following standards will be used to evaluate and score projects:

0-2 points

Poor: incomplete information, budget does not match scope of work

3-6 points

Fair: information is complete but shows discrepancies or a financial gap larger than credit

request, with no additional funding sources

7-10 points

Good: information is complete, and budget is clear with funding sources defined

11-

12 points

Excellent: budget is clear, project funding, aside from requested tax credits, is in hand and

will allow the project to effectively leverage a tax credit award

3. Public Benefit: 0-17 points

Board members will refer to Section 7 of the application consider the following questions.

a. Will the project meet the identified needs of the local community?

b. Does the project involve rehabilitation of a vacant or underutilized building?

c. Will the project attract a new business, create jobs, or fill a need for housing?

d. Will the project have long-term positive impacts in the community?

e. Does the project help further local revitalization goals or initiatives?

f. Are there partners/others who will benefit if this project goes forward?

The following standards will be used to evaluate and score projects:

0-4 points

Poor: applicant does not identify needs the project will address and/or the impacts of the

project

5-9 points

Fair: applicant identifies a need met by the project (a-c) but not impacts (d-f) or vice versa

10-

14 points

Good: applicant addresses how project will address at least one identified community

need and identifies at least one positive impact as defined in questions a-f

15-

17 points

Excellent: applicant identifies how project will address multiple needs and have multiple

impacts as defined in questions a-f and includes data/facts to back up any needs met, or

impacts made by the project

2020 Downtown and Village Center Tax Credit Guidelines and Application

APPENDIX B: SAMPLE CREDIT CALCULATIONS

Sample #1:

A project combining 50% Code Improvement Credits and 10% Historic Rehabilitation Credits

Total qualified expenditures are $500,000. This includes $320,000 of general historic rehabilitation costs,

$120,000 for installation of an elevator, and $60,000 for upgrades to the sprinkler system.

10% Historic Credit Actual/Estimated Costs approved by NPS

320,000

Costs up to $500,000 x .1

32,000

Costs over $500,000 x .05

Subtotal Historic Credits

32,000

25% Façade Credit (max $25,000) Total Façade Costs

Subtotal Façade Credits (Total Costs x .25)

50% Elevator Credit (max $75,000)

Total Elevator Costs

120,000

50% LULA Credit (max $60,000) Total LULA Costs

50% Lift Credit (max $12,000) Total Lift Costs

50% Sprinkler Credit (max $50,000)

Total Sprinkler Costs

60,000

Subtotal Elevator/Sprinkler Credits (Total Costs x

.5)

90,000

50% Other Code Credit (max

$50,000)

Total Fire Prevention Costs

Total Electrical Costs

Total Plumbing Costs

Total ADA Costs

Total Hazard Abatement Costs

Total Brownfield Mitigation Costs*

Subtotal Other Code Credits (Total Costs x .5)

GRAND TOTAL CREDITS REQUESTED

122,000

Half of the $180,000 investment in the sprinkler and elevator work is qualified for the 50% Code

Improvement Credit ($120,000 elevator costs +$60,000 sprinkler system upgrades = $180,000 x .5 =

90,000).

The remaining $320,000 in qualified expenditures is eligible for the 10% historic tax credit.

Total project cost is $510,000, but $10,000 of these costs is for landscaping and parking lot improvements

and is not eligible for state or federal benefits.

Additionally, costs associated with the sprinkler and elevator system must be subtracted from the Historic

Credit as they are eligible for the higher percentage Code Credit.

The credit request on the $510,000 project is $122,000 in state credits.

2020 Downtown and Village Center Tax Credit Guidelines and Application

Sample #2:

A project combining 25% Façade Credit with 50% Code Improvement Credits

Total qualified expenditures are $175,000. This includes an estimated $20,000 for the installation of a

sprinkler system; $110,000 for other code improvements (installation of a fire alarm system, ADA

bathrooms, and asbestos abatement), and $55,000 restoration of the building’s storefront, 2

and 3

floor windows, and cornice.

10% Historic Credit Actual/Estimated Costs approved by NPS

Costs up to $500,000 x .1

Costs over $500,000 x .05

Subtotal Historic Credits

25% Façade Credit (max $25,000) Total Façade Costs

55,000

Subtotal Façade Credits (Total Costs x .25)

13,750

50% Elevator Credit (max $75,000) Total Elevator Costs

50% LULA Credit (max $60,000)

Total LULA Costs

50% Lift Credit (max $12,000) Total Lift Costs

50% Sprinkler Credit (max $50,000)

Total Sprinkler Costs

20,000

Subtotal Elevator/Sprinkler Credits (Total Costs x

.5)

10,000

50% Other Code Credit (max

$50,000)

Total Fire Prevention Costs

40,000

Total Electrical Costs

Total Plumbing Costs

Total ADA Costs

20,000

Total Hazard Abatement Costs

50,000

Total Brownfield Mitigation Costs*

Subtotal Other Code Credits (Total Costs x .5)

50,000

GRAND TOTAL CREDITS REQUESTED

73,750

Other code expenditures exceed the cap in this category by $10,000 therefore the worksheet reflects a

total other code credit of $50,000 which is the cap.

In this example $15,000 the project also budgeted for a new roof, but this is ineligible for tax credits as it is

neither a code or façade improvement.

The total credit request on the $200,000 project is $73,750

2020 Downtown and Village Center Tax Credit Guidelines and Application

APPENDIX C: SECRETARY OF THE INTERIOR’S STANDARDS FOR REHABILITATION

The Standards are to be applied to specific rehabilitation projects in a reasonable manner, taking into

consideration economic and technical feasibility. The Standards apply to historic buildings of all

materials, types, and sizes. They apply to both the exterior and the interior of historic buildings as well

as attached, adjacent or related new construction.

1. A property shall be used for its historic purpose or be placed in a new use that requires

minimal change to the defining characteristics of the building and its site and environment.

2. The historic character of a property shall be retained and preserved. The removal of historic

materials or alteration of features and spaces that characterize a property shall be avoided.

3. Each property shall be recognized as a physical record of its time, place and use. Changes that

create a false sense of historical development, such as adding conjectural features or

architectural elements from other buildings, shall not be undertaken.

4. Most properties change over time; those changes that have acquired historic significance in

their own right shall be retained and preserved.

5. Distinctive features, finishes, and construction techniques or examples of craftsmanship that

characterize a property shall be preserved.

6. Deteriorated historic features shall be repaired rather than replaced. Where the severity of

deterioration requires replacement of a distinctive feature, the new feature shall match the old

in design, color, texture, and other visual qualities and, where possible, materials.

Replacement of missing features shall be substantiated by documentary, physical, or pictorial

evidence.

7. Chemical or physical treatments (such as sandblasting) that cause damage to historic

materials shall not be used. The surface cleaning of structures, if appropriate, shall be

undertaken using the gentlest means possible.

8. Significant archeological resources affected by a project shall be protected and preserved. If

such resources must be disturbed, mitigation measures shall be undertaken.

9. New additions, exterior alterations, or related new construction shall not destroy historic

materials that characterize the property. The new work shall be differentiated from the old and

shall be compatible with the massing, size, scale, and architectural features to protect the

historic integrity of the property and its environment.

10. New additions and adjacent or related new construction shall be undertaken in such a manner

that if removed in the future, the essential form and integrity of the historic property and its

environment would be unimpaired.

Click here

for more details on applying the Standards to specific situations.

You are also encouraged to contact Caitlin Corkins at caitlin.corkins@vermont.gov

or 802-828-

3047 to discuss specific project details and meeting the Standards before work begins.

https://www.nps.gov/tps/standards/rehabilitation.htm

2020 Downtown and Village Center

Tax Credit Program

Application

Page 1

2020 Downtown and Village Center Tax Credit Program Application

Please complete all sections of this application using only the space provided on this form. See Section 8 on

page 5 for a list of required attachments which must be submitted with the application. If you are not able to

gather required attachments due to the Covid-19 Pandemic, contact program staff to discuss possible

extensions. Application forms are due July 1, 2020. Copies of funded applications may be shared with the

Vermont Department of Taxes.

SECT

ION 1: APPLICANT/OWNER INFORMATION

NAME OF OWNER/LESSOR

LAST 4 DIGITS OF TAXPAYER ID

BUILDING ADDRESS

MAILING ADDRESS OF OWNER/LESSOR

DAYTIME PHONE & E-MAIL

CONTACT NAME & PHONE & E-MAIL IF DIFFERENT FROM ABOVE

SECT

ION 2: TAX CREDIT REQUEST SUMMARY

Fill in values in Section 2 by transferring totals from the tax credit calculations worksheet on page 4.

AMOUNT OF 10% HISTORIC CREDIT REQUESTED

AMOUNT OF 25% FACADE CREDIT REQUESTED

AMOUNT OF 50% ELEVATOR CREDIT REQUESTED

AMOUNT OF 50% LULA CREDIT REQUESTED

AMOUNT OF 50% LIFT CREDIT REQUESTED

AMOUNT OF 50% SPRINKLER CREDIT REQUESTED

AMOUNT OF 50% OTHER CODE CREDIT REQUESTED

TOTAL CREDITS REQUESTED

CTION 3: BANK OR INSURANCE CREDIT CERTIFICATE INFORMATION

State tax credits may be assigned (sold) to a bank or insurance company. If you would like credits issued as

a Credit Certificate, complete this section. Note: This information is typically provided when projects are

complete. To determine tax implications for sale of tax credits specific to your circumstances, consult an

accountant or tax attorney.

BANK NAME OR INSURANCE COMPANY NAME

ADDRESS, STATE, ZIP CODE

CONTACT NAME

CONTACT PHONE & E-MAIL

Page 2

SECTION 4: BUILDING INFORMATION

The information in this section is collected to provide data on program outcomes. Please complete all items.

Date of Building

Grand List Value

Property SPAN #

Original/historic use(s) of the building

Current use(s) of the building

Square Feet: Before After

Housing Units: Before

After

Commercial Units: Before

After

SECTION 5: PROJECT SCOPE/TIMELINE

Please briefly describe the scope of your project. What work will be completed? What will the building be

used for? What changes/improvements will be made to accommodate new/expanded/improved uses?

Const

ruction Start Date (month/year):

Estimated Construction Completion Date (month/year):

Most projects require some type of local or state review or permitting. Please list any permits and/or

approvals required for your project and when they will be in hand.

If appl

icable, briefly identify project phases:

Page 3

SECTION 6: PROJECT BUDGET

Funding Sources

Please include all funding sources for the project. This includes private financing and bank loans, other

tax credit equity, and any private or public grants or loans. Note if the funding is in hand, committed or

planned at the time of application.

Funding Source

Status of Funding

Amount

Total Project Funding

Please briefly list any partners both public and private involved in this project. For example, municipal

partners, non-profit organizations, business owners/tenants, schools etc.

Project Budget Summary

Complete this chart based on estimated or actual costs. At minimum please include materials and labor

costs. Other budget categories might include soft costs, contingencies etc. Ideally costs will align with the

project scope described in Section 5. Do not attach any receipts or estimates. However, if funded, retain

these records in the event of an audit by the Vermont Tax Department.

Project Costs (please itemize)

Total Cost (labor and materials)

Total Project Cost

Funding Gap (if any) and explanation:

Page 4

Tax Credit Calculation

Use this worksheet to complete Section 2 of the application on page 1. Note, most credit tiers have

caps. Historic credits cannot be combined with Façade credits (see sample calculations in the Program

Guidelines document pages 8-9).

10% Historic Credit Actual/Estimated Costs approved by NPS

Costs up to $500,000 x .1

Costs over $500,000 x .05

Subtotal Historic Credits

25% Façade Credit (max $25,000) Total Façade Costs

Subtotal Façade Credits (Total costs x .25)

50% Elevator Credit (max $75,000) Total Elevator Costs

50% LULA Credit (max $60,000) Total LULA Costs

50% Lift Credit (max $12,000) Total Lift Costs

50% Sprinkler Credit (max $50,000) Total Sprinkler Costs

Subtotal Elevator/Sprinkler Credits (Total costs x .5)

50% Other Code Credit (max $50,000)

Total Fire Prevention Costs

Total Electrical Costs

Total Plumbing Costs

Total ADA Costs

Total Hazard Abatement Costs

Total Brownfield Mitigation Costs*

Subtotal Other Code Credits (Total costs x .5)

GRAND TOTAL CREDITS REQUESTED

*Must be enrolled in the BRELLA program and have an approved Corrective Action Plan from the Agency of Natural Resources

Budget Narrative: Please describe how your budget numbers were compiled. For example, do you have

estimates/quotes from contractors or cost estimators? Have you worked with an architect or consultant?

Page 5

SECTION 7: PUBLIC BENEFIT

Please describe how this project will meet a need in your community and have a long-lasting positive impact.

For example, how will the project meet the needs of your community? Does it involve rehabilitation of a vacant

or underutilized building? Does it help further local revitalization efforts? Will the project create jobs, attract a

new business, or fill a need for housing? Will it have wider economic impact? Please reference applicable

data and/or planning documents such as municipal or regional plans to demonstrate needs and impacts.

SECTION 8: REQUIRED ATTACHMENTS

E-mail at least 1-2 photographs that show the front of your building. Label these images with the

name of your building and its location.

For 10% Historic Credit applicants, submit a copy of the Part 2 RITC cover sheet signed by NPS.

For 25% Façade Credit applicants, e-mail additional labeled photographs that clearly show all sides

of the building and its setting on the street before construction. Applicants should also include plans

and/or explanation sufficiently detailed to show existing conditions and anticipated changes, e.g.,

elevations, floor plans, sketches, or annotated photographs.

For 50% Code Credit applicants, provide evidence that you have met on site with a building inspector

from the Division of Fire Safety at the Department of Public Safety or, where authorized, a municipal

fire marshal or building inspector to discuss the specific code requirements of the project. Typically,

the state or municipal code official documents site visits in a letter that identifies the work required to

bring the building into compliance. This letter is required with the application as it assures a final code

inspection and code compliance.

Note: If the project involves Brownfield Mitigation, you must provide evidence that the project is

enrolled in the BRELLA program and has an approved Corrective Action Plan from the Agency of

Natural Resources.

If you are not able to gather any of the required attachments due to the Covid-19 Pandemic, contact

program staff to discuss possible extensions. Completed applications are due July 1, 2020 by 4:30 pm.

Please email application forms to Caitlin Corkins at caitlin.corkins@vermont.gov

Page 6

SECTION 9: SIGNATURE PAGE

Please check each box indicating that you understand and will comply with the following provisions.



Qualified Applicant: I certify I own or lease the property described in this application.



Qualified Project: I certify the subject building is at least 30 years old as of this date, is within a

Designated Downtown or Village Center, and is not used solely as a single-family residence.



Good Standing: I certify that I am in “good standing” with respect to, or in full compliance with a plan to

pay any and all taxes due to the Vermont Department of Taxes.



Project Inspection and Recapture: I understand the State of Vermont reserves the right to make

inspections at any time up to five years after the completion of work and to recapture and/or reclaim

from the applicant the value of the credit, taken individually or via credit certificate for any of the

following: if it is determined information contained in this tax credit application was fraudulent; if work

is not completed or undertaken as presented in the application and supporting documentation; if

further alterations were made that do not meet the Secretary of the Interior’s Standards for

Rehabilitation, or if the property loses its federal “certified rehabilitation” status. I understand that I am

responsible for this penalty if the property is sold or conveyed within the compliance period.



Credit Expiration: I understand that the tax credits shall be forfeited if the project is not complete

and no credits have been claimed within three years from the date of the allocation award.



Earning the credit: I understand the tax credit allocation may be used in the first tax year in which

the project is complete. I understand that if the actual qualified rehabilitation expenditures are less

than that stated in the application; the tax credit is accordingly adjusted to the lesser amount.



Sale of the credits: I understand that I am responsible for any tax liability incurred as a result of the

sale of Vermont state tax credits to a bank or insurance company.



Use of Application Materials: I understand that all application materials, including photographs,

become the property of the State of Vermont and may be used or reproduced without permission.



Certification: Under penalties of perjury, I declare that the information I have provided, to the best

of my knowledge and belief, is true, correct, and complete.

Print Name

Applicant Signature Date

STAFF USE ONLY

Downtown Board Authorized Signature Date

Fiscal Year: 2021 Award Date:

Phase I

Phase II (if needed)

Phase III (if needed)

Phase IV (if needed)

10% Historic Credit

25% Façade Credit

50% Code Credit

Total Unclaimed

Allocated per phase

Total Allocated

Tax Credit

Certificate

Assigned to:

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