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 at least twenty-five (25) years old 
  • Must increase structure value by at least forty (40) percent 
  • Cannot increase total square footage by more than fifteen (15) percent 
  • All renovations must be completed within twelve (12) months from being approved
  • Non-refundable fee of fifty dollars ($50.00)
  • Abatement continues with conveyance of property.

Commercial/Industrial Rehabilitation Exemption Program (Basic Requirements)

  • Structure at least twenty-five (25) years old [At least fifteen (15) years old if in city’s designated enterprise zone] 
  • Must increase structure value by at least sixty (60) percent 
  • Cannot increase total square footage by more than twenty-five (25) percent
  • All renovations must be completed within twenty-four (24) months from being approved
  • Non-refundable fee of one-hundred dollars ($100.00)
  • 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.