Downtown Project Incentives
Real Estate Abatement Program
Specific projects may be eligible for a negotiated package including a Technology Enhancement Grant (TEG), infrastructure improvements, or Real Estate Tax Abatement. Project must demonstrate job creation, capital investment, and adequate financing. Please contact us
to determine eligibility.
Please review the Real Estate Tax Abatement Brochure
for program procedures. For more information, please call (434) 793-1753.
This program is a qualified rehabilitation real estate exemption, as allowed by Section 58.1 of the Code of Virginia, for substantially rehabilitated residential, multi-family, commercial, industrial, or multi-use structures located within a state and federally designated historic district (i.e., Downtown, Tobacco Warehouse, North Danville, Mill, Old West End, and Holbrook-Ross).
Eligible Requirements for all Structures
- The building must be no less than 50 years of age.
- The building must be substantially rehabilitated, sufficiently to increase the base assessed value by 25%.
- Rehabilitation shall not increase the total overall original square footage of the structure by more than 15%.
- A minimum of 50% of original structure must be retained in cases of intrusive demolition.
- Applicant must be current on all local taxes, utilities, and performance agreement obligations in order to receive the abatement.
- No applicant may qualify for a partial exemption from taxation if the applicant receives any other local Economic Development incentive(s) from the City or the Industrial Development Authority with the exception of the local Enterprise Zone incentives.
Specific Eligibility Requirements for Residential/Multi-Family Structures
Real estate on which any structure or other improvement has undergone substantial rehabilitation or renovation for residential use shall be granted a partial exemption from taxation, subject to the following conditions:
Specific Eligibility Requirements for Commercial or Industrial Structures
- The building must be located within the Downtown, Tobacco Warehouse, Mill, North Danville, Old West End, or Holbrook-Ross Historic Districts.
- The real estate exemption shall be equal to the increase in assessed value resulting from the rehabilitation and shall be for a period of no longer than 15 years commencing with July 1 of the tax year following completion of the rehabilitation.
Real estate on which any structure or other improvement has undergone substantial rehabilitation or renovation for commercial, residential, industrial or a mixed -use of the preceding uses shall be granted a partial exemption from taxation, subject to the following conditions:
- The building must be located in the Downtown, Tobacco Warehouse, Mill, or North Danville Historic Districts.
- The real estate exemption shall be equal to the increase in assessed value resulting from the rehabilitation. The exemption shall commence on July 1 of the tax year following completion of the rehabilitation or renovation and shall run with the real estate for a period of no longer than five years at a descending rate over the five year term as follows:
Procedures for Real Estate Tax Abatement Program
- Year One: 100%
- Year Two: 80%
- Year Three: 60%
- Year Four: 40%
- Year Five: 20%
- Year Six: 0%
- Application must be made PRIOR to any rehabilitation work and/or filed simultaneously when obtaining a building permit.
- $50 for single-family structures, $100 for multi-family, commercial and industrial structures.
- The City Assessor shall determine the assessed base value of the structure. Upon completion of the rehabilitation, the property owner must notify the City Assessor and request a final inspection by the assessor to determine if the applicant qualifies for the exemption.
- All renovation work to be considered must be completed within two years of the application date to receive the tax abatement credit.