The purpose of the program is to aid in the development and improvement of local communities, encourage the fullest use of under utilized resources, and enhancement of the property tax base.

The Restoration Tax Abatement Program provides to commercial property owners and homeowners who expand, restore, improve or develop an existing structure in a downtown development district, economic development district or historic district, the right for five years after completion of the work, to pay ad valorem taxes based on the assessed valuation of the property prior to commencement of the project.

 The application is subject to approval by the local governing authority, the State Board of Commerce and Industry, and the Governor.

Taxation of the additional value of this property is deferred for five years by a contract entered into with the Board of Commerce and Industry. The contract may be eligible for renewal, subject to the same conditions, for an additional five years.

This tax abatement is not available if property taxes have been paid on the new improvements before approval by the Office of Commerce and Industry. If the property is sold, the contract may be transferred, subject to approval by the local government entity and the Commerce and Industry department.

This program is administered by: