The Urban Development Corporation (UDC) is reporting a multimillion dollar (USD) increase in the value of investments in the Tax Incentive Programme (TIP) since the expansion of the programme in early 2017. The boundary of the government’s Tax Incentive Programme for Urban Renewal (TIP) for the Corporate Area was expanded and the programme renewed for an additional ten years as gazetted in January, 2017.
While not revealing the specific investors at this stage of the process, the UDC has reported that at least three submissions have been made in downtown Kingston valuing over US$20 million while two submissions are pending in Spanish Town in the same value chain.
Other interests are expected, as the Corporation increases its client business to business engagement through direct mailings and one on one appointments. The Corporation has also been promoting the programme through social media and exhibitions.
The application process which is managed by the Urban Development Corporation, through its Business Development Department, on behalf of the Ministry of Finance and the Public Service, provides tax relief to companies or individuals undertaking improvement works on either land or buildings. The incentives are offered to both owners and lessees of property in select Special Development Areas (SDAs) identified as suffering blight or decay. A special development area is one which is declared by the minister responsible for urban development for the purpose of urban renewal.
The boundary starts at the Kingston Waterfront from Pechon Street then westerly along the coastline then up Greenwich Street off Spanish Town Road, northerly along the parish boundary until it connects with Marescaux Road up to Arnold Road. The boundary continues down Camp Road unto Deanery Road continuing through East Kingston along Warieka Road and Harbour Road to the Shell Refinery in Rockfort and back along the coastline to Pechon Street.
The four incentives offered are Urban Renewal Bonds, Investment Tax Credit, Tax Free Rental Income and Exemption from Transfer Tax. The Tax Incentive Programme was first introduced to downtown Kingston in 1995 and was subsequently extended to Port Royal in 1996, Montego Bay in 2000 and Spanish Town in 2008.
The Tax Incentive Programme is just one of the investment vehicles that are being utilized to further spur the redevelopment of downtown Kingston. The programme for the culturally rich area is aligned with the Vision 2030 Jamaica national development plan.
Beneficiaries under the programme over the years include Digicel, GraceKennedy, Konvertra Ltd, Courts, JN General Insurance Company, Guardsman and Jamaica Teas.
For further information, please contact:
The Corporate Relations and Marketing Department
Urban Development Corporation
12 Ocean Boulevard
Tel 🙁 876) 656-8031
November 8, 2017