The Community Revitalization Tax Relief Incentive provides temporary tax relief for a property owner to rehabilitate or replace their building in a village or downtown area. The tax relief program is authorized under state law RSA 79-E, and so the program is often referred to as “79-E.”
Though it’s a state law, the program must be adopted locally to go into effect. To be eligible for the tax relief, the property owner must provide a “public benefit.” Eligible public benefits include the creation of housing in town centers, preservation of the existing building stock, economic development in town centers, and more. For any 79-E project, a covenant specifying the public benefit owners will provide is placed on the property’s deed.
Under the program, a property owner can apply to the Select Board or a similar body to delay an increase in property taxes caused by the increase in valuation from rehabilitation. The delay can last for up to five years for eligible projects at the local Governing Body’s discretion. Additional years of tax relief may be added at the Governing Body’s discretion for specific benefits: up to two additional years for the project’s inclusion of housing and up to four additional years for the inclusion of affordable housing, as well as up to four years for rehabilitation of a property National Register of Historic Places, state register of historic places, or is located within and important to a locally designated historic district.
The tax relief does not decrease the property owner’s taxes or provide permanent tax relief. Following expiration of the tax relief, the property is taxed at its full market value, taking into account the rehabilitation.
A property owner can apply for the tax relief only if:
The Community Revitalization Tax Relief Incentive can…