This tax credit reduces the taxpayer's state and local tax liability for a taxable year if the taxpayer makes a qualified investment in that year. Qualified investments are investments made for the redevelopment or rehabilitation of property located within a designated areas.
The amount of the credit to which a taxpayer is entitled is the qualified investment made by the taxpayer during the taxable year multiplied by 25%. A taxpayer may assign any part of the credit to which the taxpayer is entitled to a lessee of property redeveloped or rehabilitated.
Special incentive packages are offered to private entities based on recoupment of sale tax and/or state income tax amounts.