Renewal Community Program

City of Hamilton was designated, by the U.S. Department of Housing and Urban Development (HUD), as a Renewal Community (RC) in 2002.  The Renewal Community designation is intended to:

• Reduce tax burdens through the continued offering of a number of tax exemption programs,
• Promote historic renovation projects,
• Promote workforce development,
• Promote affordable child care facilities,
• Initiate flexible zoning options and other regulatory relief targeted at promoting growth and redevelopment opportunities in the targeted area

Some of the incentives available to eligible businesses located within the Renewal Community area include:

Renewal Community Employment Credit (RC Wage Credit)
Credit against Federal taxes up to $1,500 for businesses for each year of RC designation for every existing employee and new hire that lives and works in the RC.

Commercial Revitalization Deduction
Deduction of either ½ of qualified revitalization expenditures (QREs) in the first year a building is placed in service or all of the QREs on a ratable basis over 10-years if QREs have been allocated to revitalization of a commercial building located within the RC.

Work Opportunity Tax Work Credit (WOTC)
Credit up to $2,400 against Federal taxes for businesses for each new hire from groups that have high unemployment rates or other special employment needs, including youth ages 18-24 and summer hires ages 16-17 who live in the RC.

Welfare to Work Credit (WtW)
Two-year credit against Federal taxes for businesses that hire long-term family assistance recipients.  Credits up to $3,500 for the first year and $5,000 for the second year for each new hire.

New Markets Tax Credit
Equity investors in qualified Community Development Entities (CDEs) can obtain a tax credit against Federal taxes of 5-6% of the years the investment is held, for a period of up to 7 years.

For more information on the above incentives, and other incentives available in the City of Hamilton, please contact the Department of Economic Development.

For more information regarding this program, please visit the U.S. Department of Housing and Urban Development's Renewal Community website.