Rehabilitation Tax Credit Program

Encouraging Rehabilitation


The Office of the Assessor of Real Estate administers a program to encourage both homeowners and businesses to rehabilitate their properties and in return not pay full taxes on those improvements for a period of six (6) years. The program is authorized by the Code of Virginia § 58.1-3220 & § 58.1-3221. The exemption commences July 1st of the tax year immediately following completion of rehabilitation.

The exemption is calculated at 100 percent of the rehabilitation credit for the first three (3) years following the commencement of the exemption period and at 50 percent for the second three (3) years. An application must be filed within five (5) working days after building permits have been issued and prior to any renovations being started.

Residential Rehabilitation Exemption Program (Basic Requirements)


  • Structure must be no less than twenty-five (25) years of age.
  • Rehabilitation must be improved as to increase the assessed value by no less than forty percent (40%).
  • Total square footage may not increase more than fifteen percent (15%).
  • All renovations must be completed within one (1) year from being approved in order to qualify for the exemption.
  • Payment of non-refundable fee of fifty dollars ($50.00) for processing each application.
  • Abatement continues with conveyance of property.

Commercial/Industrial Rehabilitation Exemption Program (Basic Requirements)


  • Structure must be no less than twenty-five (25) years of age.
  • Rehabilitation must be improved as to increase the assessed value by no less than sixty percent (60%).
  • Total square footage may not increase more than twenty-five percent (25%).
  • All renovations must be completed within twenty-four (24) months from being approved in order to qualify for the exemption.
  • Payment of non-refundable fee of one hundred dollars ($100.00) for processing each application.
  • Abatement continues with conveyance of property.

Applications are available online or at the Office of the Assessor of Real Estate. Please call (757) 727-8311 if you need assistance in completing an application or would like clarification of the requirements.