Local Tax Issues

Dayton Area Home Renovation Multi-Year Tax Break May Expand

Dayton Area Home Renovation Multi-Year Tax Break May Expand

A tax break that currently impacts about 900 homes in the Dayton, Ohio suburb of Kettering may expand in the near future. 

Kettering's existing plan applies to the aforementioned homes located on about 28 acres within the Miami Valley Research Park. However, city officials would also like the tax credit to include other Kettering neighborhoods. 

According to a recent report from the Dayton Daily News, Kettering Economic Development Manager Amy Schrimpf indicated that the Community Reinvestment Area, which currently includes primarily the Aragon and Oak Park neighborhoods, will hopefully expand over the coming months and years.

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Credit: Jim Still-Pepper/Getty Images

“We’re really looking forward to seeing how this works,” Schrimpf shared. “If it does result in a lot of homes seeing more investment we may try this out in other parts of the city."

The Community Reinvestment Area program -- which was unanimously approved by the Kettering City Council last week -- allows homeowners in aging neighborhoods to receive long-term tax exemptions when they make qualifying improvements to their properties. The houses that are currently covered by the program were mainly built in the 1940s and 1950s.

Details of the exemptions are as follows:

•10-year, 75% exemptions for structures containing no more than two homes — at least one of which is owner-occupied — for remodeling projects ranging from $15,000 to $20,000 for each unit.

•12-year, 75% breaks for dwellings containing at least two homes for remodeling projects exceeding $20,001 for each unit.

•Up to 15-year, 75% exemptions for structures containing at least three homes for which the investment for all buildings is at least $30 million.

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Credit: Lawcain/Getty Images

A prior Dayton Daily News article noted that many of the houses in this area of Kettering are in dire need of repair. The median sale price for residences in the neighborhood in 2021 was approximately $36,000 less than Kettering’s average home sale rate of $165,050.

Kettering has a population of about 57,000.

What do you think about the Community Reinvestment Area?

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