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Rehabilitation Tax Credits

Federal and State Rehabilitation Tax Credits

The preservation of historic buildings benefits communities and connects us to our heritage, enriching the quality of our lives in many tangible and intangible ways. Their preservation also provides demonstrable economic benefits.

Through the federal and state rehabilitation tax credit programs, property owners are given substantial incentives for private investment in preservation, resulting in enormous advantages to the public.

Both the federal and state tax credit programs are administered in Virginia through the Department of Historic Resources.

State tax credits are available for owner-occupied, as well as income-producing buildings. If your property is income-producing, you may also be able to take advantage of federal tax credits. Additional information and assistance with tax-credit projects may be requested from DHR's Richmond office. Contact Elizabeth Tune at (804) 482-6093 or Chris Novelli at (804) 482-6097.

DHR also conducts a Tax Credit Open House on the first Friday of each month from 9 a.m. to 12 noon at our DHR Headquarters in Richmond. During open houses, DHR tax credit staff are available to meet with applicants and potential applicants to discuss tax credit projects on an informal basis. To schedule an appointment for a Tax Credit Open House, contact Chris Novelli at (804) 482-6097. Appointments are limited to 20 minutes because of demand.

Statewide Economic Benefits of the Tax Credit Program:

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Community Bank Building, ca. 1970s, in Buena Vista. (Photo: DHR tax credit file)

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Bank building after renovation.
(Photo: Kevin Blackburn)
The rehabilitation, re-use and preservation of Virginia’s historic residential and commercial buildings is good for the state's economy according to a study conducted by Virginia Commonwealth University in 2013. The benefits of bringing old buildings back to life ripples across the economy and through local communities, adding upwards of an estimated $3.9 billion to the commonwealth’s economic health. Those rehabilitation expenses and their domino effect have also created more than 31,000 full and part-time jobs during a 17-year period and generated an estimated $133 million in state and local tax revenues. Read the 51-page report or see this Preservation Virginia press release highlighting the study's findings.

The latest VCU study also supports the findings of a study VCU conducted in 2007 (and updated in 2010) that focused solely on the state historic rehabilitation tax credit.

Updated 7.10..2014