CDIP Tax Credit Program: Eligible entities may apply to the NH Community Development Finance Authority for an allocation of Community Development Investment Program (CDIP) Tax Credits, to help finance a variety of projects which create economic and community development benefits. Maximum awards are $700,000. Approximately 80% of awarded funds are directly available to finance a project. Businesses may receive a 75% state tax credit against a donation made to any approved project, which may be applied against the state business taxes. Concord projects that have used this flexible form of financing include the League of New Hampshire Craftsmen for their new headquarters at 49 South Main Street, the Red River Theatre for digital projection equipment upgrades, and the Grappone Conference Center located at Horseshoe Pond.
Opportunities for creative partnerships with the City utilizing Community Development Block Grant funding are available.
Economic Revitalization Zone (“ERZ”) Tax Credits: Concord has two designated ERZ areas - one encompasses the Penacook Tax Increment Finance District and the other is the Whitney Road corridor.
Businesses making a certain level of capital investment and creating new jobs are eligible to apply for ERZ Tax Credits, which can be used to offset tax liabilities against the state’s business profits and enterprise taxes.
Historic Tax Credits: Development projects which preserve and renovate a “historic” building may qualify for Federal Historic Tax Credits. A 20% income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures.” All renovations under the 20% program must comply with the Secretary of the Interior’s Standards for Rehabilitation of historic structures. The US Internal Revenue Service defines qualified rehabilitation expenses on which the credit may be taken. Owner-occupied residential properties do not qualify for the federal rehabilitation tax credit.
Land & Community Heritage Grants: Eligible communities and non-profit entities may apply to the NH Land and Community Heritage Investment Program (LCHIP) for matching grants up to $500,000 for the conservation and preservation of NH’s significant natural, cultural, and historic resources. Since the program’s inception, a total of $37 million has been invested.
New Market Tax Credits: Property within certain federal census tracts within the City of Concord may be eligible for the federal New Market Tax Credit Program. Implemented in 2000, projects utilizing this program are eligible for 39% tax credit on the total project cost over a seven-year period. For real estate development projects, the tax credit can be claimed directly by the developer of the project, or sold in order to raise equity for a project. These tax credits must be secured from “Community Development Entities” (“CDEs”) which have been awarded credits from the US Department of Treasury. Area CDEs having credits to invest in projects include the NH Business Finance Authority, Coastal Enterprises based in Portland Maine, the Mascoma Savings Bank, and the Massachusetts Housing Investment Corporation. Projects developed in Concord using New Market Tax Credits include the Smile Building at 45 South Main Street and Love Your Neighbor Building at 49 South Main Street.