RSA 79-E Tax Incentive

Community Revitalization Tax Relief Incentive (RSA 79E)

What is RSA 79-E?

RSA 79-E is a property tax relief program that seeks to encourage investment in town centers and to rehabilitate under-utilized buildings within these areas. The application process is made to the governing body by property owners desiring to make improvements that meet 79-E guidelines as well as the public benefit test.

In return, the governing body may provide tax relief at a pre-rehabilitation value for a finite period.

This incentive was adopted by the Town of Henniker in July of 2020.  Applications are now being accepted!

Does my property qualify for the RSA 79-E tax incentive?

An RSA 79-E applicant must pass three tests in order to qualify for a tax incentive. The applicant must be in one of the eligible districts (see attached map below), the rehabilitation project must be substantial, and the rehabilitation project must provide a public benefit.

Eligible Districts: A qualifying property must be in an eligible district. In Henniker, the eligible district is located .6 miles from Proctor Square in a circle. 

Substantial Rehabilitation: A qualifying property must have substantial rehabilitation. The rehabilitation costs at least 15% of the building’s pre-rehabilitated assessed value, or the $75,000, whichever is less. The construction also must be consistent with the town’s development regulations or the town’s master plan.

Public Benefit: A qualifying property must provide a public benefit. A public benefit could be restoring a historic building, promoting downtown development, increasing downtown housing, or increases the economic vitality of downtown.

Where has RSA 79-E been used in other New Hampshire communities?

RSA 79-E has been adopted by dozens of communities in New Hampshire. Projects have ranged from minor restorations to major redevelopment.

Newmarket, NH:

Newmarket Mills, LLC was granted 3.5 years of tax relief for their rehabilitation of the old mill buildings along the Lamprey River. The two mill buildings now consist of 120 residential units and 35,000 square feet of commercial retail space. The pre-construction assed value of the building was $1.8 million and now the value is currently assed at $2.8 million. In 2016 Newmarket Mills, LLC will be assessed at the full value of $2.8 million.

Concord, NH:

The Smile Office Building was a $26 million dollar project that transformed an underutilized two-level building. The final product is a five-level building that includes over 100,000 square feet of commercial space and 50,000 square feet of residential space. The project was made possible due to a five-year tax abatement granted using RSA 79-E.

Some facts about the law:

Provides the Henniker Board of Selectmen with discretion to deny applications and terminate an agreement.
Provides transparency by requiring a public hearing.
Provides opportunity to further define “qualifying structure”
The owner grants a covenant ensuring there is a public benefit to the rehabilitation.
The law only applies to buildings and not land.