Business Tax Credit Programs
This is the complete list of all tax credits available to businesses
to help reduce the costs associated with purchase, refinancing,
rehabilitation, and other costs of a home. For complete details
and information on participation in these programs, contact
the organization directly.
City of Richmond - Office of the City Assessor
Tax Abatement for Rehabilitated Real Estate Program
The city offers partial exemption from real estate taxes for qualifying rehabilitated
or replaced structures. For properties that qualify, the initial
increase in real estate taxes caused by rehabilitation or
replacement will be excused for ten to fifteen years, depending
on the district. The program has also been extended to include
properties that are rehabilitated by Disadvantaged and Minority
Businesses (MBE or DBE). The DBE and MBE properties maybe
located anywhere in the city. Property owners must apply to
the program and for full information including provision for
qualifying for this partial tax exemption program, or to get
an application, visit the Assessor's Office in Room 802 of
City Hall or call them at (804) 646-5227.
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City of Richmond - Office of Real Estate Services
Tax Lien Release Program
This program is designed to help facilitate the private sale of tax delinquent properties
in the city. The program is available to a property owner who (1)owns property that is assessed at less than
$50,000 and (2) for which City Tax Liens exceed twenty-five
(25%) percent of the assessed value of the property. Upon
approval of the application, the City will release City
Tax Liens in excess of twenty-five (25%) percent of the
assessed value or contract price, whichever is greater.
The City will release one hundred (100%) percent of all City Tax Liens if
the owner donates the property to a designated housing agent
of the City (i.e., RRHA or a community development corporation)
or an approved non-profit organization. Certain conditions
apply to both the buyer and the seller of the property. For
more information on this program and its specific conditions
needed to qualify call Michael Dodson at 646-3727.
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Virginia Department of Historical Resources
Tax Act Program
The Tax Act Program gives Virginia the authority to allow owners of historic properties
to receive a twenty (20) percent federal rehabilitation tax
credit and a twenty-five (25) state tax credit if they rehabilitate
the property. Only "income producing" property as defined
by the IRS is eligible for the federal tax credit, owner occupied
singe family homes are not eligible. The property must be
listed on the National Register of Historic Places and The
Virginia Landmark Register. Specific requirements for the
types of property, the use of the property and all other requirements
can be found in the "REHABILITATION TAX CREDITS A TAXPAYER'S
GUIDE" published by the department. Properties that are
not on the list of Historic Places or in a Historic District
and were built prior to 1936 are eligible for a ten (10) percent
federal tax credit. For more information on the program or
to receive the enrollment forms visit them at their web
page or call the department at (804) 367-2323.
Virginia Department of Housing and Community Development (VDHCD)
General Income Tax Credit
A ten-year General Income Tax Credit Program is designed to help a business reduce
its state tax liability in an amount of 80% for one year and
a reduction of 60% for each year over the next nine years.
The program is only available for businesses in State designated
Enterprise Zones. For more information on this program call
VDHCD at (804) 371-7030.
Real Property Improvement Tax Credit
The Real Property Improvement Tax Credit is available for businesses and is equal up to
30% of qualified zone improvements with a maximum amount not
to exceed $125,000 within a five-year period. The program
is only available for businesses in State designated Enterprise
Zones. For more information on this program call VDHCD at (804) 371-7030.
Investment Tax Credit
The Investment Tax Credit is a negotiated amount that is set by the Department
and is not to exceed 5% of the qualified zone investments.
The program is only available for businesses in State designated
Enterprise Zones. For more information on this program call
VDHCD at (804) 371-7030.
Virginia Housing Development Authority (VHDA) - VHDA Tax Credits
Low Income Housing Tax Credits
The Federal Low-Income Housing Tax Credits (LIHTC) program is sponsored by the US
Treasury Department and administered by VHDA in Virginia.
The program provides a federal income tax credit to private
individuals, investors or corporations who participate in
the construction or redevelopment of low-income housing. The
credits are taken annually over a period of ten (10) years.
The program may reduce payable taxes by up to $25,000 of non-passive
income. For more information on the steps required
for this program call VHDA at 1-800-227-8432, visit the VHDA
web site or call Brenda Hawkins at (804) 343.5663.
State Tax CreditRent Reduction Program
This program was designed to increase and preserve the supply of affordable housing
for seniors and disabled people while helping property owners
fill vacant units and/or offer reduced rents to current residents.
In exchange for offering rent reductions of at least 15 percent
below the rent charged for a comparable unit, the owner receives
a credit on his or her state taxes that is equal to 50 percent
of the annual value of the reduction. For example, if 10 units
are reduced by $100 per month and are occupied for 12 months,
the owner would receive a tax credit of $6,000. The owner
cannot receive credits for reductions given prior to the property
being approved by VHDA. For more information on the steps required
for this program call VHDA at 1-800-227-8432, visit the VHDA
web site or call Brenda Hawkins at (804) 343.5663.
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