TIP offers tax credits on capital investments in designated urban areas.
"It should be noted carefully that companies accessing the TIP under the Urban Renewal Programme will be precluded from accessing other incentives under the omnibus tax incentive regime," said the ministry's Tax Policy Unit in response to Wednesday Business queries.
The new tax regime is encapsulated in new legislation that includes the Fiscal Incentives Act.
The UDC offers TIP incentives to those who either own or lease property in any of the declared special development areas of downtown Kingston and any other area designated for development across Jamaica.
Applicants must have a perfect record of tax payment.
The incentives include an Urban Renewal Bond, investment tax credit and tax-free rental income available under the Urban Renewal (Tax Relief) Act to individuals or companies undertaking capital capital investments in either land or buildings, whether residential or commercial.
The bonds are loan instruments which may be issued or underwritten by approved private- and public-sector organisations to mobilise funds for specific projects within the area specified.
According to the UDC's website, under the investment tax credit "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 33 per cent on capital sums invested, which is set off against other income tax liability or the developer, from any other source, but limited to 50 per cent of that liability in any one year of assessment".
The UDC also points out that full relief from income tax on rental income from the new or refurbished buildings is available to approved developers during the incentive period. Approved developers are also exempt from transfer tax during the incentive period.
The UDC implements the programme as agents of the Ministry of Finance.