Rehabilitation Tax Credits
Please Note: Effective February 10,
2016: Changes to
Rehabilitation Tax Credit Regulations
: Amendments and clarification of the existing program regulations
are necessary to-
- Enhance the ease of use for program applicants;
- More clearly set out the application requirements and standards of review for both applicants and DHR
- Establish stricter reporting requirements to ensure the integrity of financial data.
Additionally, the amendments will revise the existing fee structure to more accurately reflect the time and professional expertise necessary for DHR’s review of projects.
Changes to the regulations are final on February 10,
2016 and all submissions to DHR thereafter must be in compliance
with the regulations.
The final regulations and
information about them were published in the
Please note, in particular, review of rehabilitation expenses by a CPA is required for all 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 a 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.
Please use the revised application forms below
and other documents
related to the new amendments.
To ensure that your historic rehabilitation is eligible for state income tax credits,
you need to complete the three-step certification process. An
is provided to guide you in submitting your application.
The first step is to print and fill in the Part 1 Application and send it
to the address provided, together with the other materials noted on the checklist. 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, due to increasing
cost in processing the applications; use the Billing Statement form to determine the fee for your
(In order to read and print the following forms, Adobe Acrobat Reader must be installed on your computer (free software).
Download Acrobat Reader
now. For your convenience, the application
forms are also provided as Microsoft Word files, which enables you to enter data
via your computer.)
Virginia Tax Credit Application
(beginnig Feb. 2016 the following applications must be used):
Additional Documents Pertaining to Program Changes
Implemented February 10, 2016
- Part I: "Evaluation of Significance":
- Part II: "Description of Rehabilitation":
- Part III: "Request for Certification of Completed Work"
Other Important Documents for
Virginia Tax Credit Application & Projects