To ensure that your historic rehabilitation is eligible for state income tax credits, you need to complete the three-step certification process. An application checklist [pdf] is provided to guide you in submitting your application. The first step is to fill out the Part 1 application, print it out, and send all Part 1 materials noted on the checklist to the address listed in the application form. If you are planning to apply for the federal credit as well as the state credit, note that your application should include two copies of the federal form, which can be obtained on the National Park Service website. The department’s tax credit staff will contact you about moving forward.
Note: Parts 2 and 3 require a processing fee; use the Fee Schedule form [pdf] to determine the fee for your application.
Also, please note, that review of rehabilitation expenses by a CPA is required for all completed projects. An Agreed-Upon Procedures (AUP) engagement will be conducted for projects with rehabilitation expenses less than $500,000. The CPA’s resulting AUP report, which includes a supporting schedule of rehabilitation expenses, schedule of construction costs, and relevant disclosure notes, is submitted with the Part 3 application.
DHR requires that an independent CPA conduct an audit of rehabilitation expenses for projects with expenses of $500,000 or more to provide assurance that the expenses meet the requirements of the program and are eligible for the tax credit. The CPA’s resulting audit report—which includes a supporting schedule of rehabilitation expenses, schedule of construction costs, and relevant disclosure notes—is submitted with the Part 3 application.
(In order to read and print the following forms, Adobe Acrobat Reader must be installed on your computer (free software). Download Acrobat Reader now.)
Virginia Tax Credit Application
- Part I: “Evaluation of Significance” [PDF]
- Part II: Application Cover Sheet [PDF]
- Part II: 2 Narrative Description of Work [docx]
- Part III: “Request for Certification of Completed Work” [PDF]
- State Amendment Form [PDF]
- Part 2 and Part 3 Fee Schedule [PDF]
Please Note: All Federal rehabilitation tax credit applications received on and after December 2, 2019, must use the new Federal forms with “Rev. 2019” headers. Previous versions will not be accepted. You can access the new federal forms at this NPS webpage: National Park Service.
Part 3 Financial Certification Requirements :
- Financial Certification Requirements [pdf]
- Report of Independent Accountant on Applying the Virginia Rehabilitation Tax Credit Agreed-Upon Procedures (PDF)
- Illustrative Audit Report (PDF)
- Schedule of Construction Costs [xlsx]
- Schedule of Qualified Rehabilitation Expenses [xlsx]
- CPA Frequently Asked Questions for AUPs and Audits [pdf]
Other Helpful Guidance and Forms
- Application Checklist [pdf]
- Comparison of State and Federal Programs [pdf]
- Frequently Asked Questions [pdf]
- Detailed Application Process [pdf]
- Eligible and Ineligible Costs [pdf]
- Photographic Standards [pdf]
- Measuring Test – Understanding the Material/Substantial Rehabilitation Test [pdf]
- Project Phasing Guidance [pdf]
- Clarifying HRTC Program Definitions [pdf]
- Sample Part 2 Narrative Description of Work [pdf]
- Preliminary Information Form (PIF) Guidance for Prospective HRTC Projects [pdf]
- Disclosure of Ownership (docx)
- Va. Tax Credit Regs. Revised
- Federal Tax Credit Application Forms
Updated March 9, 2023