Tax Credit Programs
This is the complete list of all tax credits available 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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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 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
tax credit call VHDA at 1-800-227-8432, visit the VHDA
web site or call Brenda Hawkins at (804) 343.5663.
State Tax Credit Rent 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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