Kelowna - Urban Centre Incentives
The City of Kelowna has several incentives available to developers to encourage alignment with the City’s strategic priorities for urban development. Incentives in the form of tax exemptions are available for projects within the City Centre and Rutland Urban Centres as part of the Revitalization Tax Exemption Bylaw 9561. These incentives are in place to encourage new investment as part of our overall strategy to build vibrant urban centres. Value +Tax Area 1 allows for 100 per cent municipal tax exemptions on the revitalization amount on the parcel for any residential or commercial project in the area Tax Area 2 encourages larger projects by: +Providing a 100 per cent revitalization amount on the parcel for a project with minimum floor area of 3,716m2 (40,000 sq ft) +Providing a 75 per cent revitalization amount on the parcel that can be attributed to a residential land use +Providing a 50 per cent revitalization amount on the parcel that can be attributed to a commercial land use, for a project with a floor area of less than 3,716 m2 (40,000 sq. ft.) +Rutland Tax Area 3 allows for a 100 per cent municipal tax exemptions on the revitalization amount on the parcel for any project in the area +The program provides the exemption on the “revitalization amount.” This is defined in the Revitalization Tax Exemption Bylaw as “the municipal portion of property tax calculated in relation to the increase in the assessed value of improvements on the property resulting from the construction or alterations as outlined in section 6 of this bylaw.” +For example, if you build a four-storey building on a lot that was previously vacant, you would receive a municipal tax exemption for 10 years on the value of the new building (the improvements) +The tax exemption doesn’t extend to the land value
Grant Deadline
2025-01-21
Funding Amount
Deadline not available
Type of Grant
Investment
Sectors
Demographics
Incorporation
For Profit
Perks
Region Restriction
This grant is restricted to whole of Canada
Keywords
Age Restriction
This grant is age restricted from 18 to 100
Eligibility and Requirements
For all active incentive areas, the project must have a construction value of $300,000 or greater, determined by the building permit issued for the project.
Project Eligibility
- Residential, commercial and mixed-use development projects are eligible for tax exemptions in the City Centre, with different requirements for Tax Area 1 and Tax Area 2
- Residential, commercial and mixed-use projects are also eligible for tax exemptions if they’re within Tax Area 3 in Rutland Urban Centre
- All projects must be consistent with the future land use designation for the parcel, as set out in Kelowna’s Official Community Plan, and meet the requirements of the Revitalization Tax Exemption Bylaw
Application Requirements
- At minimum, you should have a Development Permit Application submitted before you apply
- If a rezoning application is also involved, it should have progressed to 3rd Reading before making a Revitalization Tax Exemption application
- In all cases, an application must be made before construction begins
- Consult with the Policy and Planning Department with any questions
Grant Application website
https://www.kelowna.ca/homes-building/developers/developer-incentive
Contact
Policy & Planning