29 V.I.C. § 713e – Tax Exemptions for the Production of Affordable Housing
Purpose: 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.
29 V.I.C. § 713e – Tax Exemptions for the Production of Affordable Housing
Purpose: 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
Tax Exemptions for Developers:
Approved affordable housing developments under the Virgin Islands Housing Finance Authority (VIHFA) may be exempt from:
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.
Key Highlights
Tax Exemptions for Developers:
Approved affordable housing developments under the Virgin Islands Housing Finance Authority (VIHFA) may be exempt from:
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.
Why It Matters
This law is a critical part of the Virgin Islands' strategy to lower development costs, increase housing supply, and create more opportunities for local employment and training in the construction sector.
Why It Matters
This law is a critical part of the Virgin Islands' strategy to lower development costs, increase housing supply, and create more opportunities for local employment and training in the construction sector.
Join Us
We invite you to be part of the solution. Whether you’re a builder, a policymaker, a renter, or a concerned citizen, your voice matters. Together, we can build a stronger, more affordable housing future for the Virgin Islands.
COPYRIGHT 2024
Join Us
Let’s come together to build a better future—Whether you're a professional in the housing industry, a policy maker, or a resident who cares about the future of your community—your voice matters.
COPYRIGHT 2024