NH RSA 79-E, also known as the Community Revitalization Tax Relief Incentive, is a temporary property tax relief program that encourages the rehabilitation of underused buildings, especially in downtown areas. Keene adopted the program in 2017 and has since expanded the 79-E district to support revitalization efforts.
Overview
Property owners in the designated RSA 79-E districts can apply for short term tax relief when they invest in substantial building improvements that provide public benefits, such as:
- Housing
- Accessibility upgrades
- Energy efficiency
- Historic preservation
- Economic development
If approved, it delays the increase in property taxes resulting from the property’s higher post-rehabilitation value.
This program supports:
- Downtown redevelopment
- Housing growth
- Stronger local economies
Step 1: Submit Your Application
Complete the 79-E application.
Step 2: Staff Review
City staff will review your application to make sure it is complete. We will contact you if more information is required. Eligibility Criteria
Step 3: Public Hearing (Within 60 Days)
Once the application is complete, the City Council will hold a public hearing within 60 days. This gives the public a chance to learn about the project and share input.
Step 4: City Council Vote (Within 45 Days)
After the hearing, the City Council has 45 days to vote on an application. If approved, they will also decide the duration of tax relief.
Step 5: Record a Covenant
If your project is approved, you must sign and record a covenant with the City at the Cheshire County Registry of Deeds.
- This legal document protects the agreed-upon public benefits and ensures the building is used and maintained as promised.
- The covenant can last up to twice as long as the tax relief period.
- You are responsible for any recording fees.
Step 6: Complete the Project
You can begin work only after:
- The City Council has approved your project, and
- You’ve signed and recorded the covenant
Once these steps are complete, construction or rehabilitation may begin.
Step 7: Tax Relief Period
After the project is complete, tax relief shall be calculated on the value in excess of the original assessed value, as per RSA 79-E:13
Per RSA 79-E:13, this tax base is set only after:
- City Council approval, and
- The covenant is signed.
After the relief period ends, your property will be taxed at its full market value.
How Long Is the Tax Relief?
The City Council decides the duration based on the public benefits your project provides. They may grant:
- Up to 5 years – For substantial rehab or replacement
- +2 years – If your project adds new residential units
- +4 years – If it includes affordable housing units
- +4 years – If the property is listed (or eligible) on the National Register of Historic Places
Eligibility
To be eligible for Keene’s 79-E Tax Relief Program, a project must meet three main criteria.
1. Substantial Rehabilitation or Replacement
Your project must either:
Substantially Rehabilitate a Building
- The investment must be at least 15% of the building’s current assessed value, or $75,000—whichever is less.
- For historic buildings, the requirement is 10% or $5,000 (whichever is less), focused on energy efficiency improvements following federal historic rehab standards.
Replace an Existing Building
- You can remove or demolish an existing building only if it has no significant historic, cultural, or architectural value.
- The public benefit of replacement must be greater than what rehabilitation would provide.
2. Location in the 79-E District & Qualification by Use
The building must be in the Keene 79-E Incentive District.
Eligible buildings include:
- Non-residential structures
- Mixed-use buildings with less than 50% residential space
- Residential buildings within the district
3. Public Benefit
To qualify, your project must provide at least one of the following State-defined public benefits:
- Boosts downtown economic activity
- Preserves or improves a historic or culturally important building
- Reuses existing building stock
- Supports vibrant, walkable town or city centers
- Adds new housing in downtown or urban areas
Keene’s Additional Public Benefits
Keene also considers how well your project aligns with local goals. These can influence how much tax relief you receive:
- Follows the City’s Comprehensive Master Plan
- Creates at least one new full-time job in downtown
- Supports public art
- Meets green building standards (like LEED or Green Globes)
- Encourages or maintains owner-occupied housing
- Improves energy performance, with:
- A home energy score of at least 6, and
- A 10% reduction in carbon emissions
Note: Projects are not required to meet all these benefits, but the more it does, the more tax relief it may qualify for.
Learn More
Email the Community Development Department or call us at (603) 352-5440