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Tax Increment Financing (TIF) is a powerful economic development tool for funding improvements which support commercial development and has been used successfully in communities throughout New Hampshire. Such districts would allow the Town to use future tax revenue from increased assessments in a designated area to fund improvements in that area that are needed for economic development.
What is a TIF District?
Tax Increment Financing (TIF) is a method of financing of public improvements with the incremental taxes created by new construction, expansion, or renovation of property within a defined area of the community. This powerful tool for funding necessary infrastructure improvements has been used successfully in communities throughout New Hampshire. NH Office of Energy & Planning TIF Explanation Guide
Where are Hopkinton's TIF Districts?
At Town Meeting in March 2018, Hopkinton voters established two (2) Tax Increment Finance (TIF) Districts.
The Exit 6 TIF District encompasses the commercial area around Exit 6 on I-89 and runs about a mile along Maple Street. The Hart's Corner TIF District is located at the intersection of Routes 202/9 and Maple Street and runs about 3/4 mile along Maple Street.
Hart's Corner TIF District
Exit 6 TIF District
What are the Rules?
Some key provision are listed here, but you can review the entire statute, RSA 162-K for a full understanding.
A municipality must first adopt the provision of RSA 162-K before creating a TIF. (Done at Town Meeting 2018)
Following adoption of the provisions of the statute, the town may then establish one or more development districts.
(Two created at Town Meeting 2018)
For each district, the town must establish a Development Program including a Tax Increment Financing Plan which shall allocate use of tax increments for retirement of bonds and notes, operation, maintenance and improvements in the district and for general municipal purposes.
Money raised within a district must be spent within that same district.
The Town of Hopkinton has created two (2) Economic Revitalization Zones, which allow the businesses within them to apply for a tax credit to the State of NH.
Business in these zones have the opportunity to reduce the Business Profits Tax and Business Enterprise Tax if, during the calendar year 2022, they added the equivalent of at least one full time job and/or made capital investments consisting of new construction, renovation, expansion or new equipment.
The DEADLINE to apply for this tax credit is YEARLY on FRIDAY, FEBRUARY 10TH.
Is my business in an ERZ?
The two (2) ERZs are located in the Exit 6 area along Maple Street and just west of Contoocook Village along Pine Street.
Maps of each district and the parcels they encompass are linked below:
What & where is 79-E?
At its Town Meeting in 2009, The Town of Hopkinton adopted the Community Revitalization Tax Incentive Plan (also known as Chapter 79-E for its enabling RSA). The purpose of this legislation is to encourage investment in central business districts, neighborhood business districts, downtowns, and village centers.
The goal is to encourage the rehabilitation and active reuse of under-utilized buildings in order to promote strong local economies and smart, sustainable growth, as an alternative to sprawl.
Hopkinton's 79-E Districts comprise all properties in Hopkinton Village and Contoocook Village that have a "village" zoning designation.
Therefore, a property owner who wants to replace or substantially rehabilitate a building located in a designated district may apply to the local governing body for a period of temporary property tax relief.
The temporary tax relief, if granted, would consist of a set period of time (between 1-5 years) during which the property tax on the structure would not increase as a result of its substantial rehabilitation. In exchange for the relief, the property owner grants a covenant ensuring there is a public benefit to the rehabilitation.
Following expiration of the finite tax relief period, the structure would be taxed at its full market value taking into account the rehabilitation.
The rehabilitation must cost at least 15% of the building’s pre-rehab assessed value, or $75,000, whichever is less.
The rehabilitation is consistent with the municipality’s master plan or development regulations.
Contoocook Village Ch 79-E Zone
Hopkinton Village Ch 79-E Zone
How to Apply
Complete this application for tax relief to revitalize your building: Town of Hopkinton's Community Revitalization Tax Incentive Information & Application Packet
Questions? Contact Hopkinton's Economic Development Director, Anna Wells: email@example.com / 603-746-8264
NH Preservation Alliance 79-E Resources
Plymouth State University Report on 79-E: A Tool for Your Town: New Hampshire's Community Revitalization Tax Relief Incentive