Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Financing topic
No spam. Unsubscribe anytime.
How applicants can use and sell tax credits to finance downtown work
Summary
Corkins explained that awarded credits are issued on completion, can be carried forward up to nine years, and—if the recipient has low tax liability—can be sold to banks or insurance companies (commonly for 90–95¢ on the dollar) to help secure construction financing.
Corkins told participants that credits are earned when a project is complete and that awardees may use the certificate in the next tax filing year or carry the credit forward. She emphasized the paperwork timeline and financing uses: award letters can be taken to banks to secure short-term construction loans and then credits sold when the project finishes.
She clarified who can buy credits: purchasers must be banks or insurance companies that pay Vermont taxes (they need not be Vermont-headquartered so long as they have Vermont tax liability). "It is specifically, has to be a bank or an insurance company... that is written into the statute," she said, and noted banks typically buy credits at around 90–95¢ on the dollar. Corkins said she keeps a list of banks familiar with routine credit purchases to help applicants.
