Governor Ernie Fletcher’s Communication Office
Governor Fletcher appoints Kentucky Housing Corporation as Commercial Revitalization Agency
Group will allocate the Commercial Revitalization Deduction to businesses in eastern Kentucky
FRANKFORT, Ky. – Governor Ernie Fletcher has appointed Kentucky Housing Corporation (KHC) as the Commercial Revitalization Agency to allocate the Commercial Revitalization Deduction available to businesses in eastern Kentucky. The East Kentucky Corporation, the originally appointed Commercial Revitalization Agency, closed earlier this year.
“The Kentucky Housing Corporation has developed a tremendous reputation as the state’s housing finance agency,” said Governor Fletcher. “This is in large part due to the KHC’s extensive experience in administering federal tax incentives. I am confident that the KHC will bring to bear that experience as the state’s Commercial Revitalization Agency to create economic development opportunities for the Eastern Kentucky Renewal Community.”
In 2002, Owsley County applied for and won a federal Renewal Community designation from the U.S. Department of Housing and Urban Development that includes Breathitt, Lee, Owsley and Wolfe Counties. The counties are collectively known as the Eastern Kentucky Renewal Community.
The Renewal Community designation provides a substantial package of federal tax credits and deductions for businesses that are located in this four-county area. The deductions were created as part of the Community Renewal Tax Relief Act of 2000 and were created to provide tax incentives for businesses to locate and hire residents in areas that have not experienced recent economic expansion.
The Commercial Revitalization Deduction that KHC will allocate is specifically for businesses that construct or substantially renovate commercial buildings. The Eastern Kentucky Renewal Community is allocated $12 million per year in Commercial Revitalization Deductions. Businesses must apply for the Commercial Revitalization Deduction in order to receive an allocation. The allocation must be received in the year the building is placed into service.
Businesses that receive a Commercial Revitalization Deduction allocation can elect to deduct the costs of constructing or renovating commercial buildings in one of two ways: (1) deduct one-half of the costs the same year the building is placed into service, or (2) deduct all of the costs over a ten-year period.
Kentucky Housing Corporation will immediately begin making allocations to those businesses that have already applied for the 2005 tax year. Businesses that have constructed or renovated buildings within Breathitt, Lee, Owsley or Wolfe Counties that have not yet applied for the deduction must do so by December 15, 2005.
For more information or to apply for the deduction, contact Brad Sweazy at (502) 564-7630, ext. 305, or by email at email@example.com.
Kentucky Housing Corporation (KHC), the state housing finance agency, was created by the 1972 General Assembly to provide housing opportunities for lower- and moderate-income Kentuckians. KHC is a self-supporting, public corporation. Through the sale of tax-exempt mortgage revenue bonds and receipt of fees for administering federal rental assistance, KHC offers lower than market rate home mortgages, multifamily housing production financing, homeownership education and a variety of rental assistance and housing rehabilitation and repair programs. Kentucky Housing Corporation prohibits discrimination in employment on the basis of race, color, religion, sex, national origin, sexual orientation or gender identity, ancestry, age, disability or veteran status.