Cabinet Approves Incentives to Revitalise Business Downtown

Cabinet has approved a number of incentives to revitalise business in downtown, Kingston, under the Urban Renewal Tax Relief Act.
Minister without Portfolio in the Office of the Prime Minister, with responsibility for Information and Telecommunications, Hon. Daryl Vaz, who gave details of the measures at yesterday’s (Sept. 9) post-Cabinet press briefing, at Jamaica House, said the amendment to the Act is timely, as a number of private sector companies have been awaiting this stimulus, in order to relocate their head offices downtown.
The incentives include: accelerated capital allowances for owners of buildings in the areas designated for development. “These capital allowances can be claimed over two years instead of the life of the asset, similar to which now obtains for manufacturers,” he explained.
Meanwhile, investment tax credit is being increased from 25 per cent to 33.3 per cent for central head offices. This is a special benefit for corporations that wish to locate their central head offices in this area. “They will be allowed to deduct cost incurred to generate income in arriving at statutory income, and a reduced corporate income tax rate of 25 per cent for central management services, which is provided to groups of companies located outside the island,” Mr. Vaz said.
He also informed of a double rental deduction for lessees. “That is, owners of properties will be able to claim double for rent in arriving at statutory income, so that providers of support services, such as courier services and printing services will benefit,” the Minister outlined.
The Urban Renewal Tax Relief Act was passed in 1995 to encourage and facilitate development within the areas suffering from blight and urban decay and dilapidation, by providing for certain incentives by way of tax relief.
The Ministry of Foreign Affairs and Foreign Trade is expected to lead this charge by setting up offices in downtown Kingston.