Governor Phil Scott Announces $3 Million in Downtown and Village Center Tax Credits

Montpelier, Vt. - Governor Phil Scott and the Agency of Commerce and Community Development announced at yesterday's press conference just over $3.3 million in funding for 34 rehabilitation and revitalization projects in 23 of Vermont's designated downtown and village centers.

"Over the years, this program has proven to be effective, making necessary repairs to buildings and upgrades to infrastructure, which make a real difference in communities," said Governor Phil Scott. "Downtowns are the hub of many communities and helping them to thrive is key to growing Vermont's economy."

These Downtown and Village Center Tax Credit Program awards will generate nearly $70 million in building improvements and public infrastructure around the state. In addition to supporting investments for small businesses and important community centers, funding this year will help to create or rehabilitate nearly 70 units of housing within existing underutilized and vacant buildings.

"These tax credits remain one of Vermont's most effective and popular tools for breathing new life into every corner of Vermont," said Department of Housing and Community Development Commissioner Alex Farrell. "But none of the progress happens without local leadership, small-scale developers, and business owners who believe in Vermont's communities. Program demand was once again well above the funding available, underscoring the need for more funding so we can continue to support small businesses, preserve history, and strengthen local economies."

$3.3 million in tax credits will offset the costs of major investments in projects, including:

81 North Main Street, Bradford: The Jenkins House, constructed in 1836, will be fully rehabilitated using both federal and state tax credits to provide four much-needed apartments. Exterior work includes a new standing seam roof, removal of vinyl siding, and restoration of original clapboards, windows, and Greek Revival-style woodwork. Interior upgrades enable the addition of a fourth permitted unit, with all new systems, including a sprinkler system.

20 Elliot Street, Brattleboro: Constructed in the 1880s, this Gothic Revival-style Methodist church in Brattleboro was decommissioned in the 1970s. State tax credits will support investments to bring the building back into adaptive use with a workforce-development doughnut bakery that includes community space, a teaching kitchen, and 4-6 affordable housing units. Credits will address deferred maintenance with façade repairs and ensure code compliance, including the installation of a sprinkler system.

52 Elm Street, Gilman: The 1924 George L. Fox Memorial Chapel, recently acquired by a local non-profit group, will undergo essential restoration work to ensure safety, accessibility, and long-term preservation. State tax credits will help replace the outdated electrical system, restore deteriorated windows, and install a lift to make the building ADA accessible. The project will play a pivotal role in sustaining Gilman's community identity and support local economic growth by expanding the chapel's use as a venue for concerts, educational programs, and community events.

216 Route 132, Strafford: For 48 years, the Coburns owned and operated South Strafford's general store until June 2025, when the Strafford Community Trust purchased the historic property. The circa 1870 store is a vital community resource that provides not only groceries but is also an indispensable center of public and private activities, including a Mascoma bank branch, post office, gas pump, and laundromat. State tax credits will support the first phase of a multi-phased project that includes code-required upgrades to keep the store open.

27 Wales Street, Rutland: The City of Rutland received a sales tax reallocation award for the development of a seven-story downtown hotel and apartment building. The new building will include 99 hotel rooms and 26 market-rate apartments. Reallocated taxes will support upgrades to the municipal infrastructure adjacent to the new hotel, including stormwater, sewer, and water lines. The above-ground streetscape will be redesigned for pedestrian traffic to provide outdoor seating for the numerous restaurants on this Center Street block.

F or a complete list of new projects , and more information, visit the Department of Housing and Community Development website.

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