{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-339.7.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-339.7.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-339.7.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-339.7.html"}],"law_id":77593,"edition_id":1,"section_id":77593,"structure_id":14016,"section_number":"58.1-339.7","catch_line":"Livable Home Tax Credit","history":"1999, c. 404; 2007, cc. 68, 765; 2009, cc. 15, 496; 2011, c. 365; 2023, c. 444.","full_text":"A\n\nFor taxable years beginning on and after January 1, 2000, any taxpayer who purchases a new residence or retrofits or hires someone to retrofit an existing residence, provided that such new residence or the retrofitting of such existing residence is designed to improve accessibility, provide universal visitability, and meets the eligibility requirements established by guidelines developed by the Department of Housing and Community Development, shall be allowed a credit against the tax imposed pursuant to § 58.1-320 of an amount equal to $500, or $2,000 for taxable years beginning on or after January 1, 2010, for such new residence or 25 percent of the total amount spent for the retrofitting of such existing residence. For taxable years beginning on or after January 1, 2010, the 25 percent shall increase to 50 percent. The amount of the credit allowed for the retrofitting of an existing residence shall not exceed $500, or $2,000 for taxable years beginning on or after January 1, 2010. Such a credit shall require application by the taxpayer as provided in subsection C. For purposes of this section, the purchase of a new residence means a transaction involving the first sale of a residence or dwelling. The provisions of this subsection shall not be applicable for taxable years beginning on or after January 1, 2011.B\n\nFor taxable years beginning on or after January 1, 2011, an individual shall be allowed a credit against the tax imposed by § 58.1-320 for a portion of the total purchase price paid by him for a new residence or the total amount expended by him to retrofit an existing residence, provided that the new residence or the retrofitting of the existing residence is designed to improve accessibility, to provide universal visitability, and it meets the eligibility requirements established by guidelines developed by the Department of Housing and Community Development. In addition, a licensed contractor, as defined in § 54.1-1100, shall be allowed a credit against the tax imposed by § 58.1-320 or 58.1-400 for a portion of the total amount it expended in constructing a new residential structure or unit or retrofitting or renovating an existing residential structure or unit, provided that the new residential structure or unit or the retrofitting or renovating of the existing residential structure or unit is designed to improve accessibility, to provide universal visitability, and it meets the eligibility requirements established by guidelines developed by the Department of Housing and Community Development.\n\t\t\tThe credit shall be allowed for the taxable year in which the residence has been purchased or construction, retrofitting, or renovation of the residence or residential structure or unit has been completed. For taxable years beginning before January 1, 2023, the credit allowed under this section shall not exceed (i) $5,000 for the purchase of each new residence or the construction of each new residential structure or unit or (ii) 50 percent of the total amount expended, but not to exceed $5,000, for the retrofitting or renovation of each existing residence or residential structure or unit. For taxable years beginning on and after January 1, 2023, the credit allowed under this section shall not exceed (i) $6,500 for the purchase of each new residence or the construction of each new residential structure or unit or (ii) 50 percent of the total amount expended, but not to exceed $6,500, for the retrofitting or renovation of each existing residence or residential structure or unit.\n\t\t\tNo credit shall be allowed under this section for the purchase, construction, retrofitting, or renovation of residential rental property.C\n\nEligible taxpayers shall apply for the credit by making application to the Department of Housing and Community Development. The Department of Housing and Community Development shall issue a certification for an approved application to the taxpayer. The taxpayer shall attach the certification to the applicable income tax return. For fiscal years beginning before July 1, 2023, the total amount of tax credits granted under this section for any fiscal year shall not exceed $1 million. For fiscal years beginning on and after July 1, 2023, the total amount of tax credits granted under this section for any fiscal year shall not exceed $2 million. For fiscal years beginning before July 1, 2023, the Department of Housing and Community Development shall allocate $500,000 in tax credits for the purchase or construction of new residences and $500,000 in tax credits for the retrofitting or renovation of existing residences or residential structures or units. For fiscal years beginning on and after July 1, 2023, the Department of Housing and Community Development shall allocate $1 million in tax credits for the purchase or construction of new residences and $1 million in tax credits for the retrofitting or renovation of existing residences or residential structures or units. If the amount of tax credits approved in a fiscal year for the purchase or construction of new residences is less than the total amount allocated for such fiscal year, the Director of the Department of Housing and Community Development shall allocate the remaining balance of such tax credits for the retrofitting or renovation of existing residences or residential structures or units. If the amount of tax credits approved in a fiscal year for the retrofitting or renovation of existing residences or residential structures or units is less than the total amount allocated for such fiscal year, the Director of the Department of Housing and Community Development shall allocate the remaining balance of such tax credits for the purchase or construction of new residences. In the event applications for the tax credit exceed the amount allocated by the Director for the fiscal year, the Department of Housing and Community Development shall issue the tax credits pro rata based upon the amount of tax credit approved for each taxpayer and the amount of tax credits allocated by the Director.\n\t\t\tIn no case shall the Director issue any tax credit relating to transactions or dealings between affiliated entities. In no case shall the Director issue any tax credit more than once to the same or different persons relating to the same retrofitting, renovation, or construction project.D\n\nIn no case shall the amount of credit taken by a taxpayer pursuant to this section exceed the taxpayer’s income tax liability for the taxable year. If the amount of credit allowed for the taxable year in which the residence has been purchased or construction, retrofitting, or renovation of the residence or residential structure or unit has been completed exceeds the taxpayer’s income tax liability imposed for such taxable year, then the amount that exceeds the tax liability may be carried over for credit against the income taxes of such taxpayer in the next seven taxable years or until the total amount of the tax credit issued has been taken, whichever is sooner. Credits granted to a partnership, limited liability company, or electing small business corporation (S corporation) shall be allocated to the individual partners, members, or shareholders, respectively, in proportion to their ownership or interest in such business entities.","order_by":null,"text":{"0":{"id":278364,"text":"For taxable years beginning on and after January 1, 2000, any taxpayer who purchases a new residence or retrofits or hires someone to retrofit an existing residence, provided that such new residence or the retrofitting of such existing residence is designed to improve accessibility, provide universal visitability, and meets the eligibility requirements established by guidelines developed by the Department of Housing and Community Development, shall be allowed a credit against the tax imposed pursuant to § 58.1-320 of an amount equal to $500, or $2,000 for taxable years beginning on or after January 1, 2010, for such new residence or 25 percent of the total amount spent for the retrofitting of such existing residence. For taxable years beginning on or after January 1, 2010, the 25 percent shall increase to 50 percent. The amount of the credit allowed for the retrofitting of an existing residence shall not exceed $500, or $2,000 for taxable years beginning on or after January 1, 2010. Such a credit shall require application by the taxpayer as provided in subsection C. For purposes of this section, the purchase of a new residence means a transaction involving the first sale of a residence or dwelling. The provisions of this subsection shall not be applicable for taxable years beginning on or after January 1, 2011.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":278365,"text":"For taxable years beginning on or after January 1, 2011, an individual shall be allowed a credit against the tax imposed by § 58.1-320 for a portion of the total purchase price paid by him for a new residence or the total amount expended by him to retrofit an existing residence, provided that the new residence or the retrofitting of the existing residence is designed to improve accessibility, to provide universal visitability, and it meets the eligibility requirements established by guidelines developed by the Department of Housing and Community Development. In addition, a licensed contractor, as defined in § 54.1-1100, shall be allowed a credit against the tax imposed by § 58.1-320 or 58.1-400 for a portion of the total amount it expended in constructing a new residential structure or unit or retrofitting or renovating an existing residential structure or unit, provided that the new residential structure or unit or the retrofitting or renovating of the existing residential structure or unit is designed to improve accessibility, to provide universal visitability, and it meets the eligibility requirements established by guidelines developed by the Department of Housing and Community Development.\n\t\t\tThe credit shall be allowed for the taxable year in which the residence has been purchased or construction, retrofitting, or renovation of the residence or residential structure or unit has been completed. For taxable years beginning before January 1, 2023, the credit allowed under this section shall not exceed (i) $5,000 for the purchase of each new residence or the construction of each new residential structure or unit or (ii) 50 percent of the total amount expended, but not to exceed $5,000, for the retrofitting or renovation of each existing residence or residential structure or unit. For taxable years beginning on and after January 1, 2023, the credit allowed under this section shall not exceed (i) $6,500 for the purchase of each new residence or the construction of each new residential structure or unit or (ii) 50 percent of the total amount expended, but not to exceed $6,500, for the retrofitting or renovation of each existing residence or residential structure or unit.\n\t\t\tNo credit shall be allowed under this section for the purchase, construction, retrofitting, or renovation of residential rental property.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":278366,"text":"Eligible taxpayers shall apply for the credit by making application to the Department of Housing and Community Development. The Department of Housing and Community Development shall issue a certification for an approved application to the taxpayer. The taxpayer shall attach the certification to the applicable income tax return. For fiscal years beginning before July 1, 2023, the total amount of tax credits granted under this section for any fiscal year shall not exceed $1 million. For fiscal years beginning on and after July 1, 2023, the total amount of tax credits granted under this section for any fiscal year shall not exceed $2 million. For fiscal years beginning before July 1, 2023, the Department of Housing and Community Development shall allocate $500,000 in tax credits for the purchase or construction of new residences and $500,000 in tax credits for the retrofitting or renovation of existing residences or residential structures or units. For fiscal years beginning on and after July 1, 2023, the Department of Housing and Community Development shall allocate $1 million in tax credits for the purchase or construction of new residences and $1 million in tax credits for the retrofitting or renovation of existing residences or residential structures or units. If the amount of tax credits approved in a fiscal year for the purchase or construction of new residences is less than the total amount allocated for such fiscal year, the Director of the Department of Housing and Community Development shall allocate the remaining balance of such tax credits for the retrofitting or renovation of existing residences or residential structures or units. If the amount of tax credits approved in a fiscal year for the retrofitting or renovation of existing residences or residential structures or units is less than the total amount allocated for such fiscal year, the Director of the Department of Housing and Community Development shall allocate the remaining balance of such tax credits for the purchase or construction of new residences. In the event applications for the tax credit exceed the amount allocated by the Director for the fiscal year, the Department of Housing and Community Development shall issue the tax credits pro rata based upon the amount of tax credit approved for each taxpayer and the amount of tax credits allocated by the Director.\n\t\t\tIn no case shall the Director issue any tax credit relating to transactions or dealings between affiliated entities. In no case shall the Director issue any tax credit more than once to the same or different persons relating to the same retrofitting, renovation, or construction project.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":278367,"text":"In no case shall the amount of credit taken by a taxpayer pursuant to this section exceed the taxpayer’s income tax liability for the taxable year. If the amount of credit allowed for the taxable year in which the residence has been purchased or construction, retrofitting, or renovation of the residence or residential structure or unit has been completed exceeds the taxpayer’s income tax liability imposed for such taxable year, then the amount that exceeds the tax liability may be carried over for credit against the income taxes of such taxpayer in the next seven taxable years or until the total amount of the tax credit issued has been taken, whichever is sooner. Credits granted to a partnership, limited liability company, or electing small business corporation (S corporation) shall be allocated to the individual partners, members, or shareholders, respectively, in proportion to their ownership or interest in such business entities.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"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 credit","url":"\/58.1-339.10\/","token":"58.1\/I\/3\/3\/58.1-339.10","metadata":false},{"id":84695,"structure_id":14016,"section_number":"58.1-339.11","catch_line":"Repealed","url":"\/58.1-339.11\/","token":"58.1\/I\/3\/3\/58.1-339.11","metadata":false},{"id":68389,"structure_id":14016,"section_number":"58.1-339.12","catch_line":"Farm wineries and vineyards tax credit","url":"\/58.1-339.12\/","token":"58.1\/I\/3\/3\/58.1-339.12","metadata":false},{"id":65669,"structure_id":14016,"section_number":"58.1-339.13","catch_line":"Reforestation and afforestation tax credit","url":"\/58.1-339.13\/","token":"58.1\/I\/3\/3\/58.1-339.13","metadata":false},{"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},{"id":68940,"structure_id":14016,"section_number":"58.1-339.2","catch_line":"Historic rehabilitation tax 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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-339.7\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapter 404<\/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 4 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 2007, chapters 68<\/a> and 765<\/a>; in 2009, chapters 15<\/a> and 496<\/a>; in 2011, chapter 365<\/a>; in 2023, chapter 444<\/a>.<\/p>","references":false,"refers_to":[{"id":85110,"section_number":"54.1-1100","catch_line":"Definitions","order_by":null,"url":"\/54.1-1100\/"},{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"}],"permalink":{"id":254247,"object_type":"law","relational_id":77593,"identifier":"58.1-339.7","token":"58.1\/I\/3\/3\/58.1-339.7","url":"\/58.1-339.7\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-339.7\/","token":"58.1\/I\/3\/3\/58.1-339.7","dublin_core":{"Title":"Livable Home Tax Credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-339.7","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For taxable years beginning on and after January 1, 2000, any taxpayer<\/span> who purchases a new residence or retrofits or hires someone to retrofit an existing residence, provided that such new residence or the retrofitting of such existing residence is designed to improve accessibility, provide universal visitability, and meets the eligibility requirements established by guidelines developed by the Department<\/span> of Housing and Community Development, shall be allowed a credit against the tax imposed pursuant to § 58.1-320<\/a> of an amount equal to $500, or $2,000 for taxable years beginning on or after January 1, 2010, for such new residence or 25 percent of the total amount spent for the retrofitting of such existing residence. For taxable years beginning on or after January 1, 2010, the 25 percent shall increase to 50 percent. The amount of the credit allowed for the retrofitting of an existing residence shall not exceed $500, or $2,000 for taxable years beginning on or after January 1, 2010. Such a credit shall require application by the taxpayer<\/span> as provided in subsection C. For purposes of this section, the purchase of a new residence means a transaction involving the first sale of a residence or dwelling. The provisions of this subsection shall not be applicable for taxable years beginning on or after January 1, 2011. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For taxable years beginning on or after January 1, 2011, an individual<\/span> shall be allowed a credit against the tax imposed by § 58.1-320<\/a> for a portion of the total purchase price paid by him for a new residence or the total amount expended by him to retrofit an existing residence, provided that the new residence or the retrofitting of the existing residence is designed to improve accessibility, to provide universal visitability, and it meets the eligibility requirements established by guidelines developed by the Department<\/span> of Housing and Community Development. In addition, a licensed contractor, as defined in § 54.1-1100<\/a>, shall be allowed a credit against the tax imposed by § 58.1-320<\/a> or 58.1-400<\/a> for a portion of the total amount it expended in constructing a new residential structure or unit or retrofitting or renovating an existing residential structure or unit, provided that the new residential structure or unit or the retrofitting or renovating of the existing residential structure or unit is designed to improve accessibility, to provide universal visitability, and it meets the eligibility requirements established by guidelines developed by the Department<\/span> of Housing and Community Development.\n\t\t\tThe credit shall be allowed for the taxable year in which the residence has been purchased or construction, retrofitting, or renovation of the residence or residential structure or unit has been completed. For taxable years beginning before January 1, 2023, the credit allowed under this section shall not exceed (i) $5,000 for the purchase of each new residence or the construction of each new residential structure or unit or (ii) 50 percent of the total amount expended, but not to exceed $5,000, for the retrofitting or renovation of each existing residence or residential structure or unit. For taxable years beginning on and after January 1, 2023, the credit allowed under this section shall not exceed (i) $6,500 for the purchase of each new residence or the construction of each new residential structure or unit or (ii) 50 percent of the total amount expended, but not to exceed $6,500, for the retrofitting or renovation of each existing residence or residential structure or unit.\n\t\t\tNo credit shall be allowed under this section for the purchase, construction, retrofitting, or renovation of residential rental property. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Eligible taxpayers<\/span> shall apply for the credit by making application to the Department<\/span> of Housing and Community Development. The Department<\/span> of Housing and Community Development shall issue<\/span> a certification for an approved application to the taxpayer<\/span>. The taxpayer<\/span> shall attach the certification to the applicable income tax return. For fiscal years beginning before July 1, 2023, the total amount of tax credits granted under this section for any fiscal year shall not exceed $1 million. For fiscal years beginning on and after July 1, 2023, the total amount of tax credits granted under this section for any fiscal year shall not exceed $2 million. For fiscal years beginning before July 1, 2023, the Department<\/span> of Housing and Community Development shall allocate $500,000 in tax credits for the purchase or construction of new residences and $500,000 in tax credits for the retrofitting or renovation of existing residences or residential structures or units. For fiscal years beginning on and after July 1, 2023, the Department<\/span> of Housing and Community Development shall allocate $1 million in tax credits for the purchase or construction of new residences and $1 million in tax credits for the retrofitting or renovation of existing residences or residential structures or units. If the amount of tax credits approved in a fiscal year for the purchase or construction of new residences is less than the total amount allocated for such fiscal year, the Director of the Department<\/span> of Housing and Community Development shall allocate the remaining balance of such tax credits for the retrofitting or renovation of existing residences or residential structures or units. If the amount of tax credits approved in a fiscal year for the retrofitting or renovation of existing residences or residential structures or units is less than the total amount allocated for such fiscal year, the Director of the Department<\/span> of Housing and Community Development shall allocate the remaining balance of such tax credits for the purchase or construction of new residences. In the event applications for the tax credit exceed the amount allocated by the Director for the fiscal year, the Department<\/span> of Housing and Community Development shall issue<\/span> the tax credits pro rata based upon the amount of tax credit approved for each taxpayer<\/span> and the amount of tax credits allocated by the Director.\n\t\t\tIn no case shall the Director issue<\/span> any tax credit relating to transactions or dealings between affiliated<\/span> entities. In no case shall the Director issue<\/span> any tax credit more than once to the same or different persons relating to the same retrofitting, renovation, or construction project. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In no case shall the amount of credit taken by a taxpayer<\/span> pursuant to this section exceed the taxpayer<\/span>’s income tax liability for the taxable year. If the amount of credit allowed for the taxable year in which the residence has been purchased or construction, retrofitting, or renovation of the residence or residential structure or unit has been completed exceeds the taxpayer<\/span>’s income tax liability imposed for such taxable year, then the amount that exceeds the tax liability may be carried over for credit against the income taxes of such taxpayer<\/span> in the next seven taxable years or until the total amount of the tax credit issued has been taken, whichever is sooner. Credits granted to a partnership, limited liability company, or electing small business corporation<\/span> (S corporation<\/span>) shall be allocated to the individual<\/span> partners, members, or shareholders, respectively, in proportion to their ownership or interest in such business entities. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIVABLE HOME TAX CREDIT (\u00a7 58.1-339.7)\n\nA. For taxable years beginning on and after January 1, 2000, any taxpayer who\npurchases a new residence or retrofits or hires someone to retrofit an existing\nresidence, provided that such new residence or the retrofitting of such existing\nresidence is designed to improve accessibility, provide universal visitability,\nand meets the eligibility requirements established by guidelines developed by\nthe Department of Housing and Community Development, shall be allowed a credit\nagainst the tax imposed pursuant to § 58.1-320 of an amount equal to $500,\nor $2,000 for taxable years beginning on or after January 1, 2010, for such new\nresidence or 25 percent of the total amount spent for the retrofitting of such\nexisting residence. For taxable years beginning on or after January 1, 2010, the\n25 percent shall increase to 50 percent. The amount of the credit allowed for\nthe retrofitting of an existing residence shall not exceed $500, or $2,000 for\ntaxable years beginning on or after January 1, 2010. Such a credit shall require\napplication by the taxpayer as provided in subsection C. For purposes of this\nsection, the purchase of a new residence means a transaction involving the first\nsale of a residence or dwelling. The provisions of this subsection shall not be\napplicable for taxable years beginning on or after January 1, 2011.\n\nB. For taxable years beginning on or after January 1, 2011, an individual shall\nbe allowed a credit against the tax imposed by § 58.1-320 for a portion of\nthe total purchase price paid by him for a new residence or the total amount\nexpended by him to retrofit an existing residence, provided that the new\nresidence or the retrofitting of the existing residence is designed to improve\naccessibility, to provide universal visitability, and it meets the eligibility\nrequirements established by guidelines developed by the Department of Housing\nand Community Development. In addition, a licensed contractor, as defined in\n§ 54.1-1100, shall be allowed a credit against the tax imposed by §\n58.1-320 or 58.1-400 for a portion of the total amount it expended in\nconstructing a new residential structure or unit or retrofitting or renovating\nan existing residential structure or unit, provided that the new residential\nstructure or unit or the retrofitting or renovating of the existing residential\nstructure or unit is designed to improve accessibility, to provide universal\nvisitability, and it meets the eligibility requirements established by\nguidelines developed by the Department of Housing and Community Development.\n\t\t\tThe credit shall be allowed for the taxable year in which the residence has\nbeen purchased or construction, retrofitting, or renovation of the residence or\nresidential structure or unit has been completed. For taxable years beginning\nbefore January 1, 2023, the credit allowed under this section shall not exceed\n(i) $5,000 for the purchase of each new residence or the construction of each\nnew residential structure or unit or (ii) 50 percent of the total amount\nexpended, but not to exceed $5,000, for the retrofitting or renovation of each\nexisting residence or residential structure or unit. For taxable years beginning\non and after January 1, 2023, the credit allowed under this section shall not\nexceed (i) $6,500 for the purchase of each new residence or the construction of\neach new residential structure or unit or (ii) 50 percent of the total amount\nexpended, but not to exceed $6,500, for the retrofitting or renovation of each\nexisting residence or residential structure or unit.\n\t\t\tNo credit shall be allowed under this section for the purchase, construction,\nretrofitting, or renovation of residential rental property.\n\nC. Eligible taxpayers shall apply for the credit by making application to the\nDepartment of Housing and Community Development. The Department of Housing and\nCommunity Development shall issue a certification for an approved application to\nthe taxpayer. The taxpayer shall attach the certification to the applicable\nincome tax return. For fiscal years beginning before July 1, 2023, the total\namount of tax credits granted under this section for any fiscal year shall not\nexceed $1 million. For fiscal years beginning on and after July 1, 2023, the\ntotal amount of tax credits granted under this section for any fiscal year shall\nnot exceed $2 million. For fiscal years beginning before July 1, 2023, the\nDepartment of Housing and Community Development shall allocate $500,000 in tax\ncredits for the purchase or construction of new residences and $500,000 in tax\ncredits for the retrofitting or renovation of existing residences or residential\nstructures or units. For fiscal years beginning on and after July 1, 2023, the\nDepartment of Housing and Community Development shall allocate $1 million in tax\ncredits for the purchase or construction of new residences and $1 million in tax\ncredits for the retrofitting or renovation of existing residences or residential\nstructures or units. If the amount of tax credits approved in a fiscal year for\nthe purchase or construction of new residences is less than the total amount\nallocated for such fiscal year, the Director of the Department of Housing and\nCommunity Development shall allocate the remaining balance of such tax credits\nfor the retrofitting or renovation of existing residences or residential\nstructures or units. If the amount of tax credits approved in a fiscal year for\nthe retrofitting or renovation of existing residences or residential structures\nor units is less than the total amount allocated for such fiscal year, the\nDirector of the Department of Housing and Community Development shall allocate\nthe remaining balance of such tax credits for the purchase or construction of\nnew residences. In the event applications for the tax credit exceed the amount\nallocated by the Director for the fiscal year, the Department of Housing and\nCommunity Development shall issue the tax credits pro rata based upon the amount\nof tax credit approved for each taxpayer and the amount of tax credits allocated\nby the Director.\n\t\t\tIn no case shall the Director issue any tax credit relating to transactions\nor dealings between affiliated entities. In no case shall the Director issue any\ntax credit more than once to the same or different persons relating to the same\nretrofitting, renovation, or construction project.\n\nD. In no case shall the amount of credit taken by a taxpayer pursuant to this\nsection exceed the taxpayer’s income tax liability for the taxable year.\nIf the amount of credit allowed for the taxable year in which the residence has\nbeen purchased or construction, retrofitting, or renovation of the residence or\nresidential structure or unit has been completed exceeds the taxpayer’s\nincome tax liability imposed for such taxable year, then the amount that exceeds\nthe tax liability may be carried over for credit against the income taxes of\nsuch taxpayer in the next seven taxable years or until the total amount of the\ntax credit issued has been taken, whichever is sooner. Credits granted to a\npartnership, limited liability company, or electing small business corporation\n(S corporation) shall be allocated to the individual partners, members, or\nshareholders, respectively, in proportion to their ownership or interest in such\nbusiness entities.\n\nHISTORY: 1999, c. 404; 2007, cc. 68, 765; 2009, cc. 15, 496; 2011, c. 365; 2023,\nc. 444.","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}}