Single Family and Duplexes: All qualified real estate assessed as residential property is eligible to receive a one hundred percent (100%) exemption from taxation on the first seventy-five thousand dollars ($75,000) of actual value added by the improvements. The exemption is for a period of three (3) years. Improvements must increase the assessed value by a minimum of 10%.
Multi-family housing: All qualified real estate assessed as residential property is eligible to receive a one hundred percent (100%) exemption from taxation on actual value added by the improvements. The exemption is for a period of ten (10) years. Improvements must increase the assessed value by a minimum of 10%.
Workforce Housing Tax Incentive Program:
WHTIP is further designed to encourage housing development where existing public infrastructure already exists – vacant lots, dilapidated properties, and mixed use buildings to suggest a few. Communities with a severe housing need can work with IEDA to seek designation as a Distressed Workforce Housing Community. This designation allows WHTIP assistance to be provided towards new housing development on previously undeveloped land.
A refund of state sales, service or use taxes paid during construction.
An investment tax credit of up to a maximum of 10% of the investment directly related to the construction or rehabilitation of the housing.* The tax credit is based on the new investment used for the first $150,000 of value for each home or unit. This tax credit is earned when the home or unit is certified for occupancy and can be carried forward for up to five additional years or until depleted, whichever occurs first.
Investment tax credits are fully transferable.
Tax Increment Financing:
The City of Fairfield offers up to 10 years’ worth of TIF rebates to developers undertaking significant housing infrastructure projects. Please contact FEDA for more information.