Downtown Sales Tax Reallocation

Economic Development Housing State Plans and Housing Data Fair Housing and Anti-Discrimination Mobile Home Parks Funding and Incentives Vermont Housing Improvement Program 2.0 Manufactured Home Improvement and Repair Program (MHIR) Charitable Housing Tax Credit Downtown Sales Tax Reallocation Planning for Housing Resources and Rules Partners Events, Trainings and Workshops Community Development Historic Preservation Tourism and Marketing About the Agency Downtown Sales Tax Reallocation Municipalities and the developer of qualified projects may jointly apply to the Downtown Board for a reallocation of sales taxes on construction materials. Qualified projects must be located within a  designated downtown district  and may be eligible for a reallocation of sales taxes on construction materials. Reallocated taxes must be used by the municipality to support the qualified project. The  2026 Sales Tax Reallocation Application and Guidelines  are now available. Applications for State Sales Tax Reallocation credits are due  July 3, 2026 . Read our Downtown Sales Tax Reallocation  Annual Report  (PDF) to learn more about the program. Program Essentials Applications must be for qualified projects within a designated downtown. The Board will not consider projects that are substantially completed before designation is granted to the municipality. Applications may be submitted either just prior to the start of construction or during construction of the qualifying project, but not after construction has been substantially completed. Applications will not be considered at the same Board meeting as a request for downtown designation. The application must demonstrate that the qualified project will be under construction within 12 months of the award date, and that the municipal project must be completed within 36 months of the award date. Notice of Exception:  In accordance with federal law, some materials on this page are maintained for historical or reference purposes and are  exempt from the regulation  under ADA Title II standards. To request an accessible version of any document, please contact  Lindsay Pacheco at  [email protected].