29 V.I.C. § 713e - Tax Exemptions for the Production of Affordable Housing
This section of the Virgin Islands Code supports the Affordable Housing Program by offering tax relief to developers, businesses, and vendors who participate in constructing or managing affordable housing projects in the territory.
Key Highlights
Approved affordable housing developments under the Virgin Islands Housing Finance Authority (VIHFA) may be exempt from:
Tax Exemptions for Developers:
Gross receipts taxes on revenue related to affordable housing
Excise taxes on materials and supplies
Customs duties (except for a 1% handling fee)
Income Tax Relief:
Developers may qualify for zero corporate and individual income tax for the duration of their Affordable Housing Development Agreement.
Subcontractor Incentives:
Subcontractors working on approved projects are also eligible for gross receipts tax exemptions.
Vendors Included:
Suppliers of construction materials for affordable housing projects receive the same tax benefits as developers.
Eligibility Requirements:
Developers must be bona fide Virgin Islands residents or registered local corporations.
Projects must be included in VIHFA's Three-Year Affordable Housing Plan or have a signed Affordable Housing Development Agreement.
Tax exemption certificates must be applied for and approved through the proper channels.
Special Provision:
Developers must hire and train at least eight vocational education students (2 each from plumbing, electrical, carpentry, and masonry fields) for the project’s duration to access tax exemptions.
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