Incentives
Our community, in cooperation with the State of Vermont, offers the
following potential incentives for new businesses:
Financing. The Vermont Economic Development Authority offers a variety of
below-market debt financing tools for new or growing Vermont businesses.
This includes subordinated loans or industrial revenue bonds for qualified
projects. Vermont has an active program of SBA loans and guarantees, and
most Vermont banks are very familiar with all these tools.
Property tax stabilization. State and local property tax stabilization is
available to qualified firms, as are increment financing tools.
State corporate income tax credits. Under the Vermont Economic Progress
Council (VEPC) program, the State of Vermont awards income tax credits to
qualified business projects that produce high paying jobs with good
benefits. Upon completion of a streamlined application process, an award
decision is usually given within 30 days. The potential credits include any
three of the following five:
- Investment tax credit. Up to 10% of capital investment in real property
or machinery and equipment.
- New payroll tax credit. Up to 10% of new payroll.
- Out-of-state export tax credit. Rewards out of state sales by
re-weighting the reciprocity formula.
- Research and development tax credit. Rewards in-state IRS-defined R&D
expenditures.
- Workforce development tax credit. Rewards various types of training,
education, and welfare-to-work expenditures.
Credits or exemptions are also possible for sales and use taxes on qualified
energy and construction investments.
Specialized tax credits. These credits include those for qualified:
- Investment management (in-state jobs, out-of-state sales)
- Historic preservation investments
- Downtown investments
- In-state film production
Special training grants. A variety of potential employee training and
education services and subsidies are offered. The Vermont Department of
Employment and Training, which has local offices serving businesses and
individuals in Bennington County, is one source of such programs. Another
is the Vermont Department of Economic Develoment's "Vermont Training
Program", which contributes funds for quick-response customized upgrade
training for qualified firms, especially manufacturers. See also section
on "Workforce".
Infrastructure grants. Vermont has a regular cycle of Community Development
Block Grants, which can be (and often has been) used for strategic
infrastructure investment in our county. Other federal and state
infrastructure support programs are also available and widely used in
Vermont.
For more information about the above business incentives contact BCIC, phone
802-442-8975.
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