Federal & State Rehabilitation Tax Credits
About Tax Credits
The tax codes of the United States and of the Commonwealth of Virginia provide unique incentives for taxpayers who contribute to the preservation of Virginia's old and historic buildings. By rehabilitating eligible buildings, taxpayers can qualify for substantial income tax credits.
Rehabilitation projects must be completed in either a consecutive 20-month period or in distinct phases. Projects completed in phases may be extended to a 60-month period.
Please review the Historic Rehabilitation Tax Credit Brochure
for program procedures. For more information, please contact us at (434) 793-1753.
Federal Rehabilitation Tax Credits
Properties must produce income to qualify for the federal tax credits. The federal historic rehabilitation tax credit is a dollar-for-dollar reduction of federal income tax liability and is calculated as a percentage of the eligible rehabilitation expenses for a substantial rehabilitation project. Certified rehabilitations will qualify investors for a 20% tax credit. Rehabilitations of non-historic buildings built before 1936 can qualify investors for a 10% credit.
State Rehabilitation Tax Credits
Properties do not need to produce income to qualify for state tax credits. To qualify for a state tax credit a historic structure must be certified by the Virginia Department of Historic Resources
. Certified rehabilitations will qualify investors for a 25% tax credit.