{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-339.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-339.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-339.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-339.2.html"}],"law_id":68940,"edition_id":1,"section_id":68940,"structure_id":14016,"section_number":"58.1-339.2","catch_line":"Historic rehabilitation tax credit","history":"1996, c. 520; 1998, cc. 371, 372; 1999, cc. 152, 183, 213; 2000, cc. 356, 367, 429; 2012, cc. 92, 639; 2017, cc. 717, 721; 2019, c. 25; 2024, cc. 462, 512.","full_text":"A\n\nEffective for taxable years beginning on and after January 1, 1997, any individual, trust or estate, or corporation incurring eligible expenses in the rehabilitation of a certified historic structure shall be entitled to a credit against the tax imposed by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.) and 10 (§ 58.1-400 et seq.) of Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); Article 1 (§ 58.1-2500 et seq.) of Chapter 25; and Article 2 (§ 58.1-2620 et seq.) of Chapter 26, in accordance with the following schedule:\n\t\t\tIf the amount of such credit exceeds the taxpayer’s tax liability for such taxable year, the amount that exceeds the tax liability may be carried over for credit against the taxes of such taxpayer in the next ten taxable years or until the full credit is used, whichever occurs first. Credits granted to a partnership or electing small business corporation (S corporation) shall be passed through to the partners or shareholders, respectively. Credits granted to a partnership or electing small business corporation (S corporation) shall be allocated among all partners or shareholders, respectively, either in proportion to their ownership interest in such entity or as the partners or shareholders mutually agree as provided in an executed document, the form of which shall be prescribed by the Director of the Department of Historic Resources.B\n\nEffective for taxable years beginning on and after January 1, 2000, any individual, trust, estate, or corporation resident in Virginia that incurs eligible expenses in the rehabilitation of a certified historic structure in any other state that has in effect a reciprocal historic structure rehabilitation tax credit program and agreement for residents of that state who rehabilitate historic structures in Virginia shall be entitled to a credit to the same extent as provided in subsection A and other applicable provisions of law; however, no eligible party shall receive any credit authorized under this subsection prior to taxable years beginning on and after January 1, 2002.C\n\n1. To claim the credit authorized under this section, the taxpayer shall apply to the Virginia Department of Historic Resources, which shall determine the amount of eligible rehabilitation expenses and issue a certificate thereof to the taxpayer. The taxpayer shall attach the certificate to the Virginia tax return on which the credit is claimed.2\n\na. For taxable years beginning on and after January 1, 2017, but before January 1, 2025, the amount of the credit that may be claimed by each taxpayer, including amounts carried over from prior taxable years, shall not exceed $5 million in any taxable year.\n\t\t\t\tb. For taxable years beginning on and after January 1, 2025, the amount of the credit that may be claimed by each taxpayer, including amounts carried over from prior taxable years, shall not exceed $7.5 million in any taxable year.D\n\nWhen used in this section:\n\t\t\t“Certified historic structure” means a property listed individually on the Virginia Landmarks Register, or certified by the Director of the Virginia Department of Historic Resources as contributing to the historic significance of a historic district that is listed on the Virginia Landmarks Register or certified by the Director of the Virginia Department of Historic Resources as meeting the criteria for listing on the Virginia Landmarks Register.\n\t\t\t“Eligible rehabilitation expenses” means expenses incurred in the material rehabilitation of a certified historic structure and added to the property’s capital account.\n\t\t\t“Material rehabilitation” means improvements or reconstruction consistent with “The Secretary of the Interior’s Standards for Rehabilitation,” the cost of which amounts to at least fifty percent of the assessed value of such building for local real estate tax purposes for the year prior to the initial expenditure of any rehabilitation expenses, unless the building is an owner-occupied building, in which case the cost shall amount to at least twenty-five percent of the assessed value of such building for local real estate tax purposes for the year prior to the initial expenditure of any rehabilitation expenses.\n\t\t\t“Owner-occupied building” means any building that is used as a personal residence by the owner.E\n\nThe Director of the Department of Historic Resources shall establish by regulation the requirements needed for this program, including the fees to defray necessary expenses thereof, and, except as otherwise prohibited by this section, the extent to which the availability of the credit provided by this section is coextensive with the availability of the federal tax credit for the rehabilitation of certified historic resources.F\n\nAny gain or income under federal law from the allocation or application of a tax credit under this section shall not be (i) taxable gain or income for purposes of the tax imposed pursuant to Article 2 (§ 58.1-320 et seq.), (ii) taxable gain or income for purposes of the tax imposed pursuant to Article 6 (§ 58.1-360 et seq.), or (iii) taxable gain or income for purposes of the tax imposed pursuant to Article 10 (§ 58.1-400 et seq.). However, nothing in this subsection shall be construed or interpreted as allowing a subtraction or deduction for such gain or income under federal law if the gain or income is otherwise excluded, deducted, or subtracted in computing the respective tax set forth under clauses (i) through (iii).","order_by":null,"text":{"0":{"id":249584,"text":"Effective for taxable years beginning on and after January 1, 1997, any individual, trust or estate, or corporation incurring eligible expenses in the rehabilitation of a certified historic structure shall be entitled to a credit against the tax imposed by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.) and 10 (§ 58.1-400 et seq.) of Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); Article 1 (§ 58.1-2500 et seq.) of Chapter 25; and Article 2 (§ 58.1-2620 et seq.) of Chapter 26, in accordance with the following schedule:\n\t\t\tIf the amount of such credit exceeds the taxpayer’s tax liability for such taxable year, the amount that exceeds the tax liability may be carried over for credit against the taxes of such taxpayer in the next ten taxable years or until the full credit is used, whichever occurs first. Credits granted to a partnership or electing small business corporation (S corporation) shall be passed through to the partners or shareholders, respectively. Credits granted to a partnership or electing small business corporation (S corporation) shall be allocated among all partners or shareholders, respectively, either in proportion to their ownership interest in such entity or as the partners or shareholders mutually agree as provided in an executed document, the form of which shall be prescribed by the Director of the Department of Historic Resources.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":249585,"text":"Effective for taxable years beginning on and after January 1, 2000, any individual, trust, estate, or corporation resident in Virginia that incurs eligible expenses in the rehabilitation of a certified historic structure in any other state that has in effect a reciprocal historic structure rehabilitation tax credit program and agreement for residents of that state who rehabilitate historic structures in Virginia shall be entitled to a credit to the same extent as provided in subsection A and other applicable provisions of law; however, no eligible party shall receive any credit authorized under this subsection prior to taxable years beginning on and after January 1, 2002.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":249586,"text":"1. To claim the credit authorized under this section, the taxpayer shall apply to the Virginia Department of Historic Resources, which shall determine the amount of eligible rehabilitation expenses and issue a certificate thereof to the taxpayer. The taxpayer shall attach the certificate to the Virginia tax return on which the credit is claimed.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C2"},"3":{"id":249587,"text":"a. For taxable years beginning on and after January 1, 2017, but before January 1, 2025, the amount of the credit that may be claimed by each taxpayer, including amounts carried over from prior taxable years, shall not exceed $5 million in any taxable year.\n\t\t\t\tb. For taxable years beginning on and after January 1, 2025, the amount of the credit that may be claimed by each taxpayer, including amounts carried over from prior taxable years, shall not exceed $7.5 million in any taxable year.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"D"},"4":{"id":249588,"text":"When used in this section:\n\t\t\t“Certified historic structure” means a property listed individually on the Virginia Landmarks Register, or certified by the Director of the Virginia Department of Historic Resources as contributing to the historic significance of a historic district that is listed on the Virginia Landmarks Register or certified by the Director of the Virginia Department of Historic Resources as meeting the criteria for listing on the Virginia Landmarks Register.\n\t\t\t“Eligible rehabilitation expenses” means expenses incurred in the material rehabilitation of a certified historic structure and added to the property’s capital account.\n\t\t\t“Material rehabilitation” means improvements or reconstruction consistent with “The Secretary of the Interior’s Standards for Rehabilitation,” the cost of which amounts to at least fifty percent of the assessed value of such building for local real estate tax purposes for the year prior to the initial expenditure of any rehabilitation expenses, unless the building is an owner-occupied building, in which case the cost shall amount to at least twenty-five percent of the assessed value of such building for local real estate tax purposes for the year prior to the initial expenditure of any rehabilitation expenses.\n\t\t\t“Owner-occupied building” means any building that is used as a personal residence by the owner.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"E"},"5":{"id":249589,"text":"The Director of the Department of Historic Resources shall establish by regulation the requirements needed for this program, including the fees to defray necessary expenses thereof, and, except as otherwise prohibited by this section, the extent to which the availability of the credit provided by this section is coextensive with the availability of the federal tax credit for the rehabilitation of certified historic resources.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"6":{"id":249590,"text":"Any gain or income under federal law from the allocation or application of a tax credit under this section shall not be (i) taxable gain or income for purposes of the tax imposed pursuant to Article 2 (§ 58.1-320 et seq.), (ii) taxable gain or income for purposes of the tax imposed pursuant to Article 6 (§ 58.1-360 et seq.), or (iii) taxable gain or income for purposes of the tax imposed pursuant to Article 10 (§ 58.1-400 et seq.). However, nothing in this subsection shall be construed or interpreted as allowing a subtraction or deduction for such gain or income under federal law if the gain or income is otherwise excluded, deducted, or subtracted in computing the respective tax set forth under clauses (i) through (iii).","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14016,"edition_id":1,"name":"Tax Credits for Individuals","identifier":"3","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:46:37","date_modified":"2026-06-26 03:46:37","permalink":{"id":254153,"object_type":"structure","relational_id":14016,"identifier":"3","token":"58.1\/I\/3\/3","url":"\/58.1\/I\/3\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79817,"structure_id":14016,"section_number":"58.1-330","catch_line":"Repealed","url":"\/58.1-330\/","token":"58.1\/I\/3\/3\/58.1-330","metadata":false},{"id":69848,"structure_id":14016,"section_number":"58.1-331","catch_line":"Repealed","url":"\/58.1-331\/","token":"58.1\/I\/3\/3\/58.1-331","metadata":false},{"id":85325,"structure_id":14016,"section_number":"58.1-332","catch_line":"Credits for taxes paid other states","url":"\/58.1-332\/","token":"58.1\/I\/3\/3\/58.1-332","metadata":false},{"id":77703,"structure_id":14016,"section_number":"58.1-332.1","catch_line":"Credit for taxes paid to a foreign country on retirement income","url":"\/58.1-332.1\/","token":"58.1\/I\/3\/3\/58.1-332.1","metadata":false},{"id":65718,"structure_id":14016,"section_number":"58.1-332.2","catch_line":"(Applicable for taxable years beginning on or after January 1, 2007) Definition of income tax","url":"\/58.1-332.2\/","token":"58.1\/I\/3\/3\/58.1-332.2","metadata":false},{"id":72337,"structure_id":14016,"section_number":"58.1-333","catch_line":"Repealed","url":"\/58.1-333\/","token":"58.1\/I\/3\/3\/58.1-333","metadata":false},{"id":73300,"structure_id":14016,"section_number":"58.1-334","catch_line":"Tax credit for purchase of conservation tillage equipment","url":"\/58.1-334\/","token":"58.1\/I\/3\/3\/58.1-334","metadata":false},{"id":64999,"structure_id":14016,"section_number":"58.1-335","catch_line":"Repealed","url":"\/58.1-335\/","token":"58.1\/I\/3\/3\/58.1-335","metadata":false},{"id":76356,"structure_id":14016,"section_number":"58.1-336","catch_line":"Repealed","url":"\/58.1-336\/","token":"58.1\/I\/3\/3\/58.1-336","metadata":false},{"id":80901,"structure_id":14016,"section_number":"58.1-337","catch_line":"Tax credit for purchase of conservation tillage and precision agriculture equipment","url":"\/58.1-337\/","token":"58.1\/I\/3\/3\/58.1-337","metadata":false},{"id":84005,"structure_id":14016,"section_number":"58.1-338","catch_line":"Expired","url":"\/58.1-338\/","token":"58.1\/I\/3\/3\/58.1-338","metadata":false},{"id":68217,"structure_id":14016,"section_number":"58.1-339","catch_line":"Repealed","url":"\/58.1-339\/","token":"58.1\/I\/3\/3\/58.1-339","metadata":false},{"id":66380,"structure_id":14016,"section_number":"58.1-339.1","catch_line":"Repealed","url":"\/58.1-339.1\/","token":"58.1\/I\/3\/3\/58.1-339.1","metadata":false},{"id":61287,"structure_id":14016,"section_number":"58.1-339.10","catch_line":"Riparian forest buffer protection for waterways tax 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credit","url":"\/58.1-339.2\/","token":"58.1\/I\/3\/3\/58.1-339.2","metadata":false},{"id":65078,"structure_id":14016,"section_number":"58.1-339.3","catch_line":"Agricultural best management practices tax credit","url":"\/58.1-339.3\/","token":"58.1\/I\/3\/3\/58.1-339.3","metadata":false},{"id":62148,"structure_id":14016,"section_number":"58.1-339.4","catch_line":"Qualified equity and subordinated debt investments tax credit","url":"\/58.1-339.4\/","token":"58.1\/I\/3\/3\/58.1-339.4","metadata":false},{"id":69444,"structure_id":14016,"section_number":"58.1-339.5","catch_line":"Repealed","url":"\/58.1-339.5\/","token":"58.1\/I\/3\/3\/58.1-339.5","metadata":false},{"id":64454,"structure_id":14016,"section_number":"58.1-339.6","catch_line":"Political candidate contribution tax credit","url":"\/58.1-339.6\/","token":"58.1\/I\/3\/3\/58.1-339.6","metadata":false},{"id":77593,"structure_id":14016,"section_number":"58.1-339.7","catch_line":"Livable Home Tax Credit","url":"\/58.1-339.7\/","token":"58.1\/I\/3\/3\/58.1-339.7","metadata":false},{"id":59088,"structure_id":14016,"section_number":"58.1-339.8","catch_line":"Income tax credit for low-income taxpayers","url":"\/58.1-339.8\/","token":"58.1\/I\/3\/3\/58.1-339.8","metadata":false},{"id":55105,"structure_id":14016,"section_number":"58.1-339.9","catch_line":"Repealed","url":"\/58.1-339.9\/","token":"58.1\/I\/3\/3\/58.1-339.9","metadata":false}],"previous_section":{"id":74716,"structure_id":14016,"section_number":"58.1-339.14","catch_line":"Firearm safety device tax credit","url":"\/58.1-339.14\/","token":"58.1\/I\/3\/3\/58.1-339.14","metadata":false},"next_section":{"id":65078,"structure_id":14016,"section_number":"58.1-339.3","catch_line":"Agricultural best management practices tax credit","url":"\/58.1-339.3\/","token":"58.1\/I\/3\/3\/58.1-339.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-339.2\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapter 520<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 7 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1998, chapters 371<\/a> and 372<\/a>; in 1999, chapters 152<\/a>, 183<\/a>, and 213<\/a>; in 2000, chapters 356<\/a>, 367<\/a>, and 429<\/a>; in 2012, chapters 92<\/a> and 639<\/a>; in 2017, chapters 717<\/a> and 721<\/a>; in 2019, chapter 25<\/a>; in 2024, chapters 462<\/a> and 512<\/a>.<\/p>","references":[{"id":63964,"section_number":"58.1-513","catch_line":"Limitations; transfer of credit; gain or loss from tax credit","order_by":null,"url":"\/58.1-513\/"}],"refers_to":[{"id":54678,"section_number":"58.1-1200","catch_line":"Title","order_by":null,"url":"\/58.1-1200\/"},{"id":56221,"section_number":"58.1-2500","catch_line":"Definitions","order_by":null,"url":"\/58.1-2500\/"},{"id":54193,"section_number":"58.1-2620","catch_line":"Basis of tax","order_by":null,"url":"\/58.1-2620\/"},{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":82371,"section_number":"58.1-360","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-360\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"}],"permalink":{"id":254227,"object_type":"law","relational_id":68940,"identifier":"58.1-339.2","token":"58.1\/I\/3\/3\/58.1-339.2","url":"\/58.1-339.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-339.2\/","token":"58.1\/I\/3\/3\/58.1-339.2","dublin_core":{"Title":"Historic rehabilitation tax credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-339.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Effective for taxable years beginning on and after January 1, 1997, any individual<\/span>, trust<\/span> or estate<\/span>, or corporation<\/span> incurring eligible expenses in the rehabilitation of a certified historic structure<\/span> shall be entitled to a credit against the tax imposed by Articles 2 (§ 58.1-320<\/a> et seq.), 6 (§ 58.1-360<\/a> et seq.) and 10 (§ 58.1-400<\/a> et seq.) of Chapter 3; Chapter 12 (§ 58.1-1200<\/a> et seq.); Article 1 (§ 58.1-2500<\/a> et seq.) of Chapter 25; and Article 2 (§ 58.1-2620<\/a> et seq.) of Chapter 26, in accordance with the following schedule:\n\t\t\tIf the amount of such credit exceeds the taxpayer<\/span>’s tax liability for such taxable year, the amount that exceeds the tax liability may be carried over for credit against the taxes of such taxpayer<\/span> in the next ten taxable years or until the full credit is used, whichever occurs first. Credits granted to a partnership or electing small business corporation<\/span> (S corporation<\/span>) shall be passed through to the partners or shareholders, respectively. Credits granted to a partnership or electing small business corporation<\/span> (S corporation<\/span>) shall be allocated among all partners or shareholders, respectively, either in proportion to their ownership interest in such entity or as the partners or shareholders mutually agree as provided in an executed document, the form of which shall be prescribed by the Director of the Department<\/span> of Historic Resources. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Effective for taxable years beginning on and after January 1, 2000, any individual<\/span>, trust<\/span>, estate<\/span>, or corporation<\/span> resident<\/span> in Virginia that incurs eligible expenses in the rehabilitation of a certified historic structure<\/span> in any other state that has in effect a reciprocal historic structure rehabilitation tax credit program and agreement for residents<\/span> of that state who rehabilitate historic structures in Virginia shall be entitled to a credit to the same extent as provided in subsection A and other applicable provisions of law<\/span>; however, no eligible party<\/span> shall receive any credit authorized under this subsection prior to taxable years beginning on and after January 1, 2002. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. To claim the credit authorized under this section, the taxpayer<\/span> shall apply to the Virginia Department<\/span> of Historic Resources, which shall determine the amount of eligible rehabilitation expenses<\/span> and issue<\/span> a certificate thereof to the taxpayer<\/span>. The taxpayer<\/span> shall attach the certificate to the Virginia tax return on which the credit is claimed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> a. For taxable years beginning on and after January 1, 2017, but before January 1, 2025, the amount of the credit that may be claimed by each taxpayer<\/span>, including amounts carried over from prior taxable years, shall not exceed $5 million in any taxable year.\n\t\t\t\tb. For taxable years beginning on and after January 1, 2025, the amount of the credit that may be claimed by each taxpayer<\/span>, including amounts carried over from prior taxable years, shall not exceed $7.5 million in any taxable year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> When used in this section:\n\t\t\t“Certified historic structure<\/span>” means a property listed individually on the Virginia Landmarks Register, or certified by the Director of the Virginia Department<\/span> of Historic Resources as contributing to the historic significance of a historic district that is listed on the Virginia Landmarks Register or certified by the Director of the Virginia Department<\/span> of Historic Resources as meeting the criteria for listing on the Virginia Landmarks Register.\n\t\t\t“Eligible rehabilitation expenses<\/span>” means expenses incurred in the material rehabilitation<\/span> of a certified historic structure<\/span> and added to the property’s capital account.\n\t\t\t“Material rehabilitation<\/span>” means improvements or reconstruction consistent with “The Secretary of the Interior’s Standards for Rehabilitation,” the cost of which amounts to at least fifty percent of the assessed value of such building for local real estate<\/span> tax purposes for the year prior to the initial expenditure of any rehabilitation expenses, unless the building is an owner-occupied building<\/span>, in which case the cost shall amount to at least twenty-five percent of the assessed value of such building for local real estate<\/span> tax purposes for the year prior to the initial expenditure of any rehabilitation expenses.\n\t\t\t“Owner-occupied building<\/span>” means any building that is used as a personal residence by the owner. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The Director of the Department<\/span> of Historic Resources shall establish by regulation the requirements needed for this program, including the fees to defray necessary expenses thereof, and, except as otherwise prohibited by this section, the extent to which the availability of the credit provided by this section is coextensive with the availability of the federal tax credit for the rehabilitation of certified historic resources. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Any gain or income under federal law<\/span> from the allocation or application of a tax credit under this section shall not be (i) taxable gain or income for purposes of the tax imposed pursuant to Article 2 (§ 58.1-320<\/a> et seq.), (ii) taxable gain or income for purposes of the tax imposed pursuant to Article 6 (§ 58.1-360<\/a> et seq.), or (iii) taxable gain or income for purposes of the tax imposed pursuant to Article 10 (§ 58.1-400<\/a> et seq.). However, nothing in this subsection shall be construed or interpreted as allowing a subtraction or deduction for such gain or income under federal law<\/span> if the gain or income is otherwise excluded, deducted, or subtracted in computing the respective tax set forth under clauses (i) through (iii). <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nHISTORIC REHABILITATION TAX CREDIT (\u00a7 58.1-339.2)\n\nA. Effective for taxable years beginning on and after January 1, 1997, any\nindividual, trust or estate, or corporation incurring eligible expenses in the\nrehabilitation of a certified historic structure shall be entitled to a credit\nagainst the tax imposed by Articles 2 (§ 58.1-320 et seq.), 6 (§\n58.1-360 et seq.) and 10 (§ 58.1-400 et seq.) of Chapter 3; Chapter 12\n(§ 58.1-1200 et seq.); Article 1 (§ 58.1-2500 et seq.) of Chapter 25;\nand Article 2 (§ 58.1-2620 et seq.) of Chapter 26, in accordance with the\nfollowing schedule:\n\t\t\tIf the amount of such credit exceeds the taxpayer’s tax liability for\nsuch taxable year, the amount that exceeds the tax liability may be carried over\nfor credit against the taxes of such taxpayer in the next ten taxable years or\nuntil the full credit is used, whichever occurs first. Credits granted to a\npartnership or electing small business corporation (S corporation) shall be\npassed through to the partners or shareholders, respectively. Credits granted to\na partnership or electing small business corporation (S corporation) shall be\nallocated among all partners or shareholders, respectively, either in proportion\nto their ownership interest in such entity or as the partners or shareholders\nmutually agree as provided in an executed document, the form of which shall be\nprescribed by the Director of the Department of Historic Resources.\n\nB. Effective for taxable years beginning on and after January 1, 2000, any\nindividual, trust, estate, or corporation resident in Virginia that incurs\neligible expenses in the rehabilitation of a certified historic structure in any\nother state that has in effect a reciprocal historic structure rehabilitation\ntax credit program and agreement for residents of that state who rehabilitate\nhistoric structures in Virginia shall be entitled to a credit to the same extent\nas provided in subsection A and other applicable provisions of law; however, no\neligible party shall receive any credit authorized under this subsection prior\nto taxable years beginning on and after January 1, 2002.\n\nC. 1. To claim the credit authorized under this section, the taxpayer shall\napply to the Virginia Department of Historic Resources, which shall determine\nthe amount of eligible rehabilitation expenses and issue a certificate thereof\nto the taxpayer. The taxpayer shall attach the certificate to the Virginia tax\nreturn on which the credit is claimed.\n\n 2. a. For taxable years beginning on and after January 1, 2017, but before\n January 1, 2025, the amount of the credit that may be claimed by each\n taxpayer, including amounts carried over from prior taxable years, shall not\n exceed $5 million in any taxable year.\n \t\t\t\tb. For taxable years beginning on and after January 1, 2025, the amount of\n the credit that may be claimed by each taxpayer, including amounts carried\n over from prior taxable years, shall not exceed $7.5 million in any taxable\n year.\n\nD. When used in this section:\n\t\t\t“Certified historic structure” means a property listed\nindividually on the Virginia Landmarks Register, or certified by the Director of\nthe Virginia Department of Historic Resources as contributing to the historic\nsignificance of a historic district that is listed on the Virginia Landmarks\nRegister or certified by the Director of the Virginia Department of Historic\nResources as meeting the criteria for listing on the Virginia Landmarks\nRegister.\n\t\t\t“Eligible rehabilitation expenses” means expenses incurred in the\nmaterial rehabilitation of a certified historic structure and added to the\nproperty’s capital account.\n\t\t\t“Material rehabilitation” means improvements or reconstruction\nconsistent with “The Secretary of the Interior’s Standards for\nRehabilitation,” the cost of which amounts to at least fifty percent of\nthe assessed value of such building for local real estate tax purposes for the\nyear prior to the initial expenditure of any rehabilitation expenses, unless the\nbuilding is an owner-occupied building, in which case the cost shall amount to\nat least twenty-five percent of the assessed value of such building for local\nreal estate tax purposes for the year prior to the initial expenditure of any\nrehabilitation expenses.\n\t\t\t“Owner-occupied building” means any building that is used as a\npersonal residence by the owner.\n\nE. The Director of the Department of Historic Resources shall establish by\nregulation the requirements needed for this program, including the fees to\ndefray necessary expenses thereof, and, except as otherwise prohibited by this\nsection, the extent to which the availability of the credit provided by this\nsection is coextensive with the availability of the federal tax credit for the\nrehabilitation of certified historic resources.\n\nF. Any gain or income under federal law from the allocation or application of a\ntax credit under this section shall not be (i) taxable gain or income for\npurposes of the tax imposed pursuant to Article 2 (§ 58.1-320 et seq.),\n(ii) taxable gain or income for purposes of the tax imposed pursuant to Article\n6 (§ 58.1-360 et seq.), or (iii) taxable gain or income for purposes of the\ntax imposed pursuant to Article 10 (§ 58.1-400 et seq.). However, nothing\nin this subsection shall be construed or interpreted as allowing a subtraction\nor deduction for such gain or income under federal law if the gain or income is\notherwise excluded, deducted, or subtracted in computing the respective tax set\nforth under clauses (i) through (iii).\n\nHISTORY: 1996, c. 520; 1998, cc. 371, 372; 1999, cc. 152, 183, 213; 2000, cc.\n356, 367, 429; 2012, cc. 92, 639; 2017, cc. 717, 721; 2019, c. 25; 2024, cc.\n462, 512.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}