• Downtown Kingston
• Port Royal
• Downtown Montego Bay

The TIP is a bold initiative by Government to encourage and facilitate development in urban areas defined as "blighted" or in need of revitalization. Through the TIP, Government gives tax relief as an incentive to individuals or companies undertaking capital investments in either land or buildings, whether residential or commercial, in the SDAs.

The Programme is consistent with Government's policy to provide opportunities to enable the private sector to become full participants in the country's development thrust. It focuses on attracting private investment capital to fuel urban renewal and growth.
   

The TIP aims to garner support and commitment, particularly from the private sector, for redevelopment of blighted and other areas

• to encourage investment, entrepreneurship, initiative and drive in furthering the plans to revive economic and cultural activities in SDAs
• to revitalize the social fabric of these communities.

Special development areas will be identified from those defined as "blighted". Blighted areas are those which show extreme physical deterioration and social neglect, resulting in low land and building values, declining economic activity, image and aesthetic appeal. The Minister responsible for urban development, in consultation with the local authorities, and the Town Planning Department, will define and identify these areas. Special development areas will be designated in various capital towns, but a section of Downtown Kingston was the first SDA selected for the pilot project.
   

The Urban Development Corporation (UDC) implements the programme as agents of the Ministry of Finance. A Programme Execution Unit (PEU), within the UDC manages the TIP and processes applications. An Incentive Recommendation Committee (IRC), with representatives from both public and private sectors, reviews applications, ensures that they satisfy the requirements and comply with the legislation and then makes recommendations to the Minister of Finance for tax incentives to be granted.
   

The TIP complements plans for redevelopment of capital towns and restoring their physical and social infrastructure. The TIP will play a catalytic role in stimulating investment and economic activity, thus arresting decay and facilitating the rejuvenation of vital areas of our capital towns.
   

Property owners in the declared SDAs, (whether individual homeowners or owners of commercial property); persons who lease property and invest in the development of that property, or persons who are in the process of acquiring property in the SDA; as well as issuers and investors in urban renewal bonds, can apply for benefits under the programme.
   

There are three types of incentives:

1. URBAN RENEWAL BOND
2. INVESTMENT TAX CREDIT
3. TAX RELIEF ON RENTAL INCOME

The Urban Renewal Bond are loan instruments which may be issued, or underwritten by approved private and public sector organizations to mobilize funds for specific projects within the SDA.

The incentive is a tax credit on capital investment, where Government gives incentives for either the construction of new buildings or improvement to old ones. This is available to approved developers, as a tax credit of 25% on capital sums invested, which is set-off against other income tax liability or the developer, from any other source but limited to 50% of that liability in any one year of assessment. Developers must prove "approved developer" status to the Income Tax Department at the time of filing tax returns.

Full relief from Income Tax on rental income from the new or refurbished buildings is available to approved developers during the incentive period. In addition, every transfer of title to improved property by an approved developer, is exempt from Transfer Tax during the incentive period.
   

To apply for approved developer or organization status, the prescribed Application Form for 'Approved Developer' or Approved Organization' must be completed and submitted along with an application fee and the relevant documents, to the PEU, Urban Development Corporation.

For approved developers, permission to develop property required under the Kingston and St. Andrew Buildings Act, Natural Resources Conservation Authority Act or Local Improvements Act and the Jamaica National Heritage Trust Act, must be obtained from the relevant authorities prior to submission of application to the PEU.

For approved organizations, applicants must state the nature of the activity to be undertaken, i.e. issuing of bonds/underwriting of bonds, in completing the prescribed application forms.