{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.12_04.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.12_04.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.12_04.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.12_04.html"}],"law_id":82387,"edition_id":1,"section_id":82387,"structure_id":13153,"section_number":"58.1-439.12:04","catch_line":"Tax credit for participating landlords","history":"2010, cc. 520, 608; 2013, cc. 23, 374; 2016, c. 305; 2019, cc. 19, 272; 2020, cc. 430, 1032; 2022, c. 252; 2024, c. 322.","full_text":"A\n\nAs used in this section, unless the context clearly shows otherwise, the term or phrase:\n\t\t\t“Dwelling unit” means an individual housing unit in an apartment building, an individual housing unit in multifamily residential housing, a single-family residence, or any similar individual housing unit.\n\t\t\t“Eligible census tract” means a census tract in Virginia in which less than 10 percent of the residents live below the poverty level, as defined by the United States government and determined by the most recent United States census.\n\t\t\t“Eligible non-metropolitan census tract” means a census tract in Virginia that (i) is not in the Richmond Metropolitan Statistical Area, the Washington-Arlington-Alexandria Metropolitan Statistical Area, or the Virginia Beach-Norfolk-Newport News Metropolitan Area and (ii) in which less than 40 percent of the residents live below the poverty level, as defined by the United States government and determined by the most recent United States census.\n\t\t\t“Housing authority” means a housing authority created under Article 1 (§ 36-1 et seq.) of Chapter 1 of Title 36 or other government agency that is authorized by the United States government under the United States Housing Act of 1937 (42 U.S.C. § 1437 et seq.) to administer a housing choice voucher program, or the authorized agent of such a housing authority that is authorized to act upon that authority’s behalf. The term shall also include the Virginia Housing Development Authority.\n\t\t\t“Housing choice voucher” means tenant-based assistance by a housing authority pursuant to 42 U.S.C. § 1437f et seq.\n\t\t\t“Participating landlord” means any person engaged in the business of the rental of dwelling units who is (i) subject to the Virginia Residential Landlord and Tenant Act (§ 55.1-1200 et seq.) and (ii) performing obligations under a contract with a housing authority relating to the rental of qualified housing units.\n\t\t\t“Qualified housing unit” means a dwelling unit that is located in either an eligible census tract or, for purposes of subdivision B 2, an eligible non-metropolitan census tract for which a portion of the rent is paid by a housing authority, which payment is pursuant to a housing choice voucher program.B\n\n1. For taxable years beginning on or after January 1, 2010, but before January 1, 2026, a participating landlord renting a qualified housing unit in an eligible census tract shall be eligible for a credit against the tax levied pursuant to \u00a7 58.1-320 or 58.1-400 in an amount equal to 10 percent of the fair market value of the rent for the unit, computed for that portion of the taxable year in which the unit was rented by such landlord to a tenant participating in a housing choice voucher program. The Department of Housing and Community Development shall administer and issue the tax credit under this section. If (i) the same parcel of real property contains four or more dwelling units and (ii) the total number of qualified housing units on the parcel in the relevant taxable year exceeds 25 percent of the total dwelling units on the parcel, then the tax credit under this section shall apply only to a limited number of qualified housing units with regard to such parcel of real property, with the limited number being equal to 25 percent of the total dwelling units on such parcel of real property in the taxable year.2\n\nFor taxable years beginning on or after January 1, 2024, but before January 1, 2026, a participating landlord renting a qualified housing unit in an eligible non-metropolitan census tract shall be eligible for a credit against the tax levied pursuant to § 58.1-320 or 58.1-400 in an amount equal to 10 percent of the fair market value of the rent for the unit, computed for that portion of the taxable year in which the unit was rented by such landlord to a tenant participating in a housing choice voucher program. The Department of Housing and Community Development shall administer and issue the tax credit under this section. If (i) the same parcel of real property contains four or more dwelling units and (ii) the total number of qualified housing units on the parcel in the relevant taxable year exceeds 25 percent of the total dwelling units on the parcel, then the tax credit under this section shall apply only to a limited number of qualified housing units with regard to such parcel of real property, with the limited number being equal to 25 percent of the total dwelling units on such parcel of real property in the taxable year.C\n\nThe Department of Housing and Community Development shall issue tax credits under this section on a fiscal year basis. For fiscal years beginning before July 1, 2024, the maximum amount of tax credits that may be issued under this section in each fiscal year shall be $250,000. For fiscal years beginning on and after July 1, 2024, (i) the maximum amount of tax credits that may be issued under subdivision B 1 in each fiscal year shall be $400,000 and (ii) the maximum amount of tax credits that may be issued under subdivision B 2 in each fiscal year shall be $100,000.D\n\nParticipating landlords shall apply to the Department of Housing and Community Development for tax credits under this section. The Department of Housing and Community Development shall determine the credit amount allowable to the participating landlord for the taxable year and shall also determine the fair market value of the rent for the qualified housing unit based on the fair market rent approved by the United States Department of Housing and Urban Development as the basis for the tenant-based assistance provided through the housing choice voucher program for the qualified housing unit. In issuing tax credits under this section, the Department of Housing and Community Development shall provide a written certification to the participating landlord, which certification shall report the amount of the tax credit approved by the Department. The participating landlord shall attach the certification to the applicable income tax return.E\n\nThe Board of Housing and Community Development shall establish and issue guidelines for purposes of implementing the provisions of this section. The guidelines shall provide for the allocation of tax credits among participating landlords requesting credits. The guidelines shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.).F\n\nIn no case shall the amount of credit taken by a participating landlord for any taxable year exceed the total amount of tax imposed by this chapter for the taxable year. If the amount of credit issued by the Department of Housing and Community Development for a taxable year exceeds the landlord’s tax liability imposed by this chapter for such taxable year, then the amount that exceeds the tax liability may be carried over for credit against the income taxes of the participating landlord in the next five 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.G\n\n1. For fiscal years beginning before July 1, 2024, in the event that the amount of the qualified requests for tax credits for participating landlords in the fiscal year exceeds $250,000, the Department of Housing and Community Development shall prorate the tax credits among the qualified applicants.2\n\nFor fiscal years beginning on and after July 1, 2024, in the event that the amount of the qualified requests for tax credits for participating landlords in the fiscal year exceeds $500,000, the Department of Housing and Community Development shall prorate the tax credits among the qualified applicants.","order_by":null,"text":{"0":{"id":295154,"text":"As used in this section, unless the context clearly shows otherwise, the term or phrase:\n\t\t\t“Dwelling unit” means an individual housing unit in an apartment building, an individual housing unit in multifamily residential housing, a single-family residence, or any similar individual housing unit.\n\t\t\t“Eligible census tract” means a census tract in Virginia in which less than 10 percent of the residents live below the poverty level, as defined by the United States government and determined by the most recent United States census.\n\t\t\t“Eligible non-metropolitan census tract” means a census tract in Virginia that (i) is not in the Richmond Metropolitan Statistical Area, the Washington-Arlington-Alexandria Metropolitan Statistical Area, or the Virginia Beach-Norfolk-Newport News Metropolitan Area and (ii) in which less than 40 percent of the residents live below the poverty level, as defined by the United States government and determined by the most recent United States census.\n\t\t\t“Housing authority” means a housing authority created under Article 1 (§ 36-1 et seq.) of Chapter 1 of Title 36 or other government agency that is authorized by the United States government under the United States Housing Act of 1937 (42 U.S.C. § 1437 et seq.) to administer a housing choice voucher program, or the authorized agent of such a housing authority that is authorized to act upon that authority’s behalf. The term shall also include the Virginia Housing Development Authority.\n\t\t\t“Housing choice voucher” means tenant-based assistance by a housing authority pursuant to 42 U.S.C. § 1437f et seq.\n\t\t\t“Participating landlord” means any person engaged in the business of the rental of dwelling units who is (i) subject to the Virginia Residential Landlord and Tenant Act (§ 55.1-1200 et seq.) and (ii) performing obligations under a contract with a housing authority relating to the rental of qualified housing units.\n\t\t\t“Qualified housing unit” means a dwelling unit that is located in either an eligible census tract or, for purposes of subdivision B 2, an eligible non-metropolitan census tract for which a portion of the rent is paid by a housing authority, which payment is pursuant to a housing choice voucher program.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":295155,"text":"1. For taxable years beginning on or after January 1, 2010, but before January 1, 2026, a participating landlord renting a qualified housing unit in an eligible census tract shall be eligible for a credit against the tax levied pursuant to \u00a7 58.1-320 or 58.1-400 in an amount equal to 10 percent of the fair market value of the rent for the unit, computed for that portion of the taxable year in which the unit was rented by such landlord to a tenant participating in a housing choice voucher program. The Department of Housing and Community Development shall administer and issue the tax credit under this section. If (i) the same parcel of real property contains four or more dwelling units and (ii) the total number of qualified housing units on the parcel in the relevant taxable year exceeds 25 percent of the total dwelling units on the parcel, then the tax credit under this section shall apply only to a limited number of qualified housing units with regard to such parcel of real property, with the limited number being equal to 25 percent of the total dwelling units on such parcel of real property in the taxable year.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":295156,"text":"For taxable years beginning on or after January 1, 2024, but before January 1, 2026, a participating landlord renting a qualified housing unit in an eligible non-metropolitan census tract shall be eligible for a credit against the tax levied pursuant to § 58.1-320 or 58.1-400 in an amount equal to 10 percent of the fair market value of the rent for the unit, computed for that portion of the taxable year in which the unit was rented by such landlord to a tenant participating in a housing choice voucher program. The Department of Housing and Community Development shall administer and issue the tax credit under this section. If (i) the same parcel of real property contains four or more dwelling units and (ii) the total number of qualified housing units on the parcel in the relevant taxable year exceeds 25 percent of the total dwelling units on the parcel, then the tax credit under this section shall apply only to a limited number of qualified housing units with regard to such parcel of real property, with the limited number being equal to 25 percent of the total dwelling units on such parcel of real property in the taxable year.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"C"},"3":{"id":295157,"text":"The Department of Housing and Community Development shall issue tax credits under this section on a fiscal year basis. For fiscal years beginning before July 1, 2024, the maximum amount of tax credits that may be issued under this section in each fiscal year shall be $250,000. For fiscal years beginning on and after July 1, 2024, (i) the maximum amount of tax credits that may be issued under subdivision B 1 in each fiscal year shall be $400,000 and (ii) the maximum amount of tax credits that may be issued under subdivision B 2 in each fiscal year shall be $100,000.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"D"},"4":{"id":295158,"text":"Participating landlords shall apply to the Department of Housing and Community Development for tax credits under this section. The Department of Housing and Community Development shall determine the credit amount allowable to the participating landlord for the taxable year and shall also determine the fair market value of the rent for the qualified housing unit based on the fair market rent approved by the United States Department of Housing and Urban Development as the basis for the tenant-based assistance provided through the housing choice voucher program for the qualified housing unit. In issuing tax credits under this section, the Department of Housing and Community Development shall provide a written certification to the participating landlord, which certification shall report the amount of the tax credit approved by the Department. The participating landlord shall attach the certification to the applicable income tax return.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"5":{"id":295159,"text":"The Board of Housing and Community Development shall establish and issue guidelines for purposes of implementing the provisions of this section. The guidelines shall provide for the allocation of tax credits among participating landlords requesting credits. The guidelines shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.).","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"6":{"id":295160,"text":"In no case shall the amount of credit taken by a participating landlord for any taxable year exceed the total amount of tax imposed by this chapter for the taxable year. If the amount of credit issued by the Department of Housing and Community Development for a taxable year exceeds the landlord’s tax liability imposed by this chapter for such taxable year, then the amount that exceeds the tax liability may be carried over for credit against the income taxes of the participating landlord in the next five 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":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"7":{"id":295161,"text":"1. For fiscal years beginning before July 1, 2024, in the event that the amount of the qualified requests for tax credits for participating landlords in the fiscal year exceeds $250,000, the Department of Housing and Community Development shall prorate the tax credits among the qualified applicants.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"G2"},"8":{"id":295162,"text":"For fiscal years beginning on and after July 1, 2024, in the event that the amount of the qualified requests for tax credits for participating landlords in the fiscal year exceeds $500,000, the Department of Housing and Community Development shall prorate the tax credits among the qualified applicants.","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G"}},"ancestry":[{"id":13153,"edition_id":1,"name":"Tax Credits for 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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":59349,"structure_id":13153,"section_number":"58.1-430","catch_line":"Repealed","url":"\/58.1-430\/","token":"58.1\/I\/3\/13\/58.1-430","metadata":false},{"id":79747,"structure_id":13153,"section_number":"58.1-431","catch_line":"Repealed","url":"\/58.1-431\/","token":"58.1\/I\/3\/13\/58.1-431","metadata":false},{"id":87213,"structure_id":13153,"section_number":"58.1-432","catch_line":"Tax credit for purchase of conservation tillage equipment","url":"\/58.1-432\/","token":"58.1\/I\/3\/13\/58.1-432","metadata":false},{"id":78377,"structure_id":13153,"section_number":"58.1-433","catch_line":"Expired","url":"\/58.1-433\/","token":"58.1\/I\/3\/13\/58.1-433","metadata":false},{"id":84600,"structure_id":13153,"section_number":"58.1-433.1","catch_line":"Virginia Coal Employment and Production Incentive Tax Credit","url":"\/58.1-433.1\/","token":"58.1\/I\/3\/13\/58.1-433.1","metadata":false},{"id":72145,"structure_id":13153,"section_number":"58.1-434","catch_line":"Repealed","url":"\/58.1-434\/","token":"58.1\/I\/3\/13\/58.1-434","metadata":false},{"id":62315,"structure_id":13153,"section_number":"58.1-436","catch_line":"Tax credit for purchase of conservation tillage and precision agricultural application 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exported","url":"\/58.1-439.12_01\/","token":"58.1\/I\/3\/13\/58.1-439.12_01","metadata":false},{"id":80405,"structure_id":13153,"section_number":"58.1-439.12:02","catch_line":" Biodiesel and green diesel fuels producers tax credit","url":"\/58.1-439.12_02\/","token":"58.1\/I\/3\/13\/58.1-439.12_02","metadata":false},{"id":77683,"structure_id":13153,"section_number":"58.1-439.12:03","catch_line":"Motion picture production tax credit","url":"\/58.1-439.12_03\/","token":"58.1\/I\/3\/13\/58.1-439.12_03","metadata":false},{"id":82387,"structure_id":13153,"section_number":"58.1-439.12:04","catch_line":"Tax credit for participating landlords","url":"\/58.1-439.12_04\/","token":"58.1\/I\/3\/13\/58.1-439.12_04","metadata":false},{"id":57964,"structure_id":13153,"section_number":"58.1-439.12:05","catch_line":"Green and alternative energy job creation tax 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credit","url":"\/58.1-439.12_03\/","token":"58.1\/I\/3\/13\/58.1-439.12_03","metadata":false},"next_section":{"id":57964,"structure_id":13153,"section_number":"58.1-439.12:05","catch_line":"Green and alternative energy job creation tax credit","url":"\/58.1-439.12_05\/","token":"58.1\/I\/3\/13\/58.1-439.12_05","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-439.12:04\/","history_text":"

This law was first created in 2010. The record of its establishment is cataloged in chapters 520<\/a> and 608<\/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 6 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 2013, chapters 23<\/a> and 374<\/a>; in 2016, chapter 305<\/a>; in 2019, chapters 19<\/a> and 272<\/a>; in 2020, chapters 430<\/a> and 1032<\/a>; in 2022, chapter 252<\/a>; in 2024, chapter 322<\/a>.<\/p>","references":false,"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":77650,"section_number":"36-1","catch_line":"Title of chapter","order_by":null,"url":"\/36-1\/"},{"id":61413,"section_number":"55.1-1200","catch_line":"Definitions","order_by":null,"url":"\/55.1-1200\/"},{"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":253571,"object_type":"law","relational_id":82387,"identifier":"58.1-439.12:04","token":"58.1\/I\/3\/13\/58.1-439.12_04","url":"\/58.1-439.12_04\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.12_04\/","token":"58.1\/I\/3\/13\/58.1-439.12_04","dublin_core":{"Title":"Tax credit for participating landlords","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.12:04","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, unless the context clearly shows otherwise, the term or phrase:\n\t\t\t“Dwelling unit<\/span>” means an individual<\/span> housing unit in an apartment building, an individual<\/span> housing unit in multifamily residential housing, a single-family residence, or any similar individual<\/span> housing unit.\n\t\t\t“Eligible census tract<\/span>” means a census tract in Virginia in which less than 10 percent of the residents<\/span> live below the poverty level, as defined by the United States government and determined by the most recent United States census.\n\t\t\t“Eligible non-metropolitan census tract<\/span>” means a census tract in Virginia that (i) is not in the Richmond Metropolitan Statistical Area, the Washington-Arlington-Alexandria Metropolitan Statistical Area, or the Virginia Beach-Norfolk-Newport News Metropolitan Area and (ii) in which less than 40 percent of the residents<\/span> live below the poverty level, as defined by the United States government and determined by the most recent United States census.\n\t\t\t“Housing authority<\/span>” means a housing authority<\/span> created under Article 1 (§ 36-1<\/a> et seq.) of Chapter 1 of Title 36 or other government agency that is authorized by the United States government under the United States Housing Act of 1937 (42 U.S.C. § 1437 et seq.) to administer a housing choice voucher<\/span> program, or the authorized agent of such a housing authority<\/span> that is authorized to act upon that authority’s behalf. The term shall also include the Virginia Housing Development Authority.\n\t\t\t“Housing choice voucher<\/span>” means tenant-based assistance by a housing authority<\/span> pursuant to 42 U.S.C. § 1437f et seq.\n\t\t\t“Participating landlord<\/span>” means any person engaged in the business of the rental of dwelling units<\/span> who is (i) subject to the Virginia Residential Landlord and Tenant Act (§ 55.1-1200<\/a> et seq.) and (ii) performing obligations under a contract<\/span> with a housing authority<\/span> relating to the rental of qualified housing units<\/span>.\n\t\t\t“Qualified housing unit<\/span>” means a dwelling unit<\/span> that is located in either an eligible census tract<\/span> or, for purposes of subdivision B 2, an eligible non-metropolitan census tract<\/span> for which a portion of the rent is paid by a housing authority<\/span>, which payment is pursuant to a housing choice voucher<\/span> program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. For taxable years beginning on or after January 1, 2010, but before January 1, 2026, a participating landlord<\/span> renting a qualified housing unit<\/span> in an eligible census tract<\/span> shall be eligible for a credit against the tax levied pursuant to \u00a7 58.1-320<\/a> or 58.1-400<\/a> in an amount equal to 10 percent of the fair market value of the rent for the unit, computed for that portion of the taxable year in which the unit was rented by such landlord to a tenant participating in a housing choice voucher<\/span> program. The Department<\/span> of Housing and Community Development shall administer and issue<\/span> the tax credit under this section. If (i) the same parcel of real property contains four or more dwelling units<\/span> and (ii) the total number of qualified housing units<\/span> on the parcel in the relevant taxable year exceeds 25 percent of the total dwelling units<\/span> on the parcel, then the tax credit under this section shall apply only to a limited number of qualified housing units<\/span> with regard to such parcel of real property, with the limited number being equal to 25 percent of the total dwelling units<\/span> on such parcel of real property in the taxable year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For taxable years beginning on or after January 1, 2024, but before January 1, 2026, a participating landlord<\/span> renting a qualified housing unit<\/span> in an eligible non-metropolitan census tract<\/span> shall be eligible for a credit against the tax levied pursuant to § 58.1-320<\/a> or 58.1-400<\/a> in an amount equal to 10 percent of the fair market value of the rent for the unit, computed for that portion of the taxable year in which the unit was rented by such landlord to a tenant participating in a housing choice voucher<\/span> program. The Department<\/span> of Housing and Community Development shall administer and issue<\/span> the tax credit under this section. If (i) the same parcel of real property contains four or more dwelling units<\/span> and (ii) the total number of qualified housing units<\/span> on the parcel in the relevant taxable year exceeds 25 percent of the total dwelling units<\/span> on the parcel, then the tax credit under this section shall apply only to a limited number of qualified housing units<\/span> with regard to such parcel of real property, with the limited number being equal to 25 percent of the total dwelling units<\/span> on such parcel of real property in the taxable year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Department<\/span> of Housing and Community Development shall issue<\/span> tax credits under this section on a fiscal year basis. For fiscal years beginning before July 1, 2024, the maximum amount of tax credits that may be issued under this section in each fiscal year shall be $250,000. For fiscal years beginning on and after July 1, 2024, (i) the maximum amount of tax credits that may be issued under subdivision B 1 in each fiscal year shall be $400,000 and (ii) the maximum amount of tax credits that may be issued under subdivision B 2 in each fiscal year shall be $100,000. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Participating landlords<\/span> shall apply to the Department<\/span> of Housing and Community Development for tax credits under this section. The Department<\/span> of Housing and Community Development shall determine the credit amount allowable to the participating landlord<\/span> for the taxable year and shall also determine the fair market value of the rent for the qualified housing unit<\/span> based on the fair market rent approved by the United States Department<\/span> of Housing and Urban Development as the basis for the tenant-based assistance provided through the housing choice voucher<\/span> program for the qualified housing unit<\/span>. In issuing tax credits under this section, the Department<\/span> of Housing and Community Development shall provide a written certification to the participating landlord<\/span>, which certification shall report the amount of the tax credit approved by the Department<\/span>. The participating landlord<\/span> shall attach the certification to the applicable income tax return. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The Board of Housing and Community Development shall establish and issue<\/span> guidelines for purposes of implementing the provisions of this section. The guidelines shall provide for the allocation of tax credits among participating landlords<\/span> requesting credits. The guidelines shall be exempt from the Administrative Process Act (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> In no case shall the amount of credit taken by a participating landlord<\/span> for any taxable year exceed the total amount of tax imposed by this chapter for the taxable year. If the amount of credit issued by the Department<\/span> of Housing and Community Development for a taxable year exceeds the landlord’s tax liability imposed by this chapter for such taxable year, then the amount that exceeds the tax liability may be carried over for credit against the income taxes of the participating landlord<\/span> in the next five 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>\n\t\t\t\t\t\t

G.<\/span> 1. For fiscal years beginning before July 1, 2024, in the event that the amount of the qualified requests for tax credits for participating landlords<\/span> in the fiscal year exceeds $250,000, the Department<\/span> of Housing and Community Development shall prorate the tax credits among the qualified applicants. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For fiscal years beginning on and after July 1, 2024, in the event that the amount of the qualified requests for tax credits for participating landlords<\/span> in the fiscal year exceeds $500,000, the Department<\/span> of Housing and Community Development shall prorate the tax credits among the qualified applicants. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTAX CREDIT FOR PARTICIPATING LANDLORDS (\u00a7 58.1-439.12:04)\n\nA. As used in this section, unless the context clearly shows otherwise, the term\nor phrase:\n\t\t\t“Dwelling unit” means an individual housing unit in an apartment\nbuilding, an individual housing unit in multifamily residential housing, a\nsingle-family residence, or any similar individual housing unit.\n\t\t\t“Eligible census tract” means a census tract in Virginia in which\nless than 10 percent of the residents live below the poverty level, as defined\nby the United States government and determined by the most recent United States\ncensus.\n\t\t\t“Eligible non-metropolitan census tract” means a census tract in\nVirginia that (i) is not in the Richmond Metropolitan Statistical Area, the\nWashington-Arlington-Alexandria Metropolitan Statistical Area, or the Virginia\nBeach-Norfolk-Newport News Metropolitan Area and (ii) in which less than 40\npercent of the residents live below the poverty level, as defined by the United\nStates government and determined by the most recent United States census.\n\t\t\t“Housing authority” means a housing authority created under\nArticle 1 (§ 36-1 et seq.) of Chapter 1 of Title 36 or other government\nagency that is authorized by the United States government under the United\nStates Housing Act of 1937 (42 U.S.C. § 1437 et seq.) to administer a\nhousing choice voucher program, or the authorized agent of such a housing\nauthority that is authorized to act upon that authority’s behalf. The term\nshall also include the Virginia Housing Development Authority.\n\t\t\t“Housing choice voucher” means tenant-based assistance by a\nhousing authority pursuant to 42 U.S.C. § 1437f et seq.\n\t\t\t“Participating landlord” means any person engaged in the business\nof the rental of dwelling units who is (i) subject to the Virginia Residential\nLandlord and Tenant Act (§ 55.1-1200 et seq.) and (ii) performing\nobligations under a contract with a housing authority relating to the rental of\nqualified housing units.\n\t\t\t“Qualified housing unit” means a dwelling unit that is located in\neither an eligible census tract or, for purposes of subdivision B 2, an eligible\nnon-metropolitan census tract for which a portion of the rent is paid by a\nhousing authority, which payment is pursuant to a housing choice voucher\nprogram.\n\nB. 1. For taxable years beginning on or after January 1, 2010, but before\nJanuary 1, 2026, a participating landlord renting a qualified housing unit in an\neligible census tract shall be eligible for a credit against the tax levied\npursuant to \u00a7 58.1-320 or 58.1-400 in an amount equal to 10 percent of the fair\nmarket value of the rent for the unit, computed for that portion of the taxable\nyear in which the unit was rented by such landlord to a tenant participating in\na housing choice voucher program. The Department of Housing and Community\nDevelopment shall administer and issue the tax credit under this section. If (i)\nthe same parcel of real property contains four or more dwelling units and (ii)\nthe total number of qualified housing units on the parcel in the relevant\ntaxable year exceeds 25 percent of the total dwelling units on the parcel, then\nthe tax credit under this section shall apply only to a limited number of\nqualified housing units with regard to such parcel of real property, with the\nlimited number being equal to 25 percent of the total dwelling units on such\nparcel of real property in the taxable year.\n\n 2. For taxable years beginning on or after January 1, 2024, but before January\n 1, 2026, a participating landlord renting a qualified housing unit in an\n eligible non-metropolitan census tract shall be eligible for a credit against\n the tax levied pursuant to § 58.1-320 or 58.1-400 in an amount equal to\n 10 percent of the fair market value of the rent for the unit, computed for\n that portion of the taxable year in which the unit was rented by such landlord\n to a tenant participating in a housing choice voucher program. The Department\n of Housing and Community Development shall administer and issue the tax credit\n under this section. If (i) the same parcel of real property contains four or\n more dwelling units and (ii) the total number of qualified housing units on\n the parcel in the relevant taxable year exceeds 25 percent of the total\n dwelling units on the parcel, then the tax credit under this section shall\n apply only to a limited number of qualified housing units with regard to such\n parcel of real property, with the limited number being equal to 25 percent of\n the total dwelling units on such parcel of real property in the taxable year.\n\nC. The Department of Housing and Community Development shall issue tax credits\nunder this section on a fiscal year basis. For fiscal years beginning before\nJuly 1, 2024, the maximum amount of tax credits that may be issued under this\nsection in each fiscal year shall be $250,000. For fiscal years beginning on and\nafter July 1, 2024, (i) the maximum amount of tax credits that may be issued\nunder subdivision B 1 in each fiscal year shall be $400,000 and (ii) the maximum\namount of tax credits that may be issued under subdivision B 2 in each fiscal\nyear shall be $100,000.\n\nD. Participating landlords shall apply to the Department of Housing and\nCommunity Development for tax credits under this section. The Department of\nHousing and Community Development shall determine the credit amount allowable to\nthe participating landlord for the taxable year and shall also determine the\nfair market value of the rent for the qualified housing unit based on the fair\nmarket rent approved by the United States Department of Housing and Urban\nDevelopment as the basis for the tenant-based assistance provided through the\nhousing choice voucher program for the qualified housing unit. In issuing tax\ncredits under this section, the Department of Housing and Community Development\nshall provide a written certification to the participating landlord, which\ncertification shall report the amount of the tax credit approved by the\nDepartment. The participating landlord shall attach the certification to the\napplicable income tax return.\n\nE. The Board of Housing and Community Development shall establish and issue\nguidelines for purposes of implementing the provisions of this section. The\nguidelines shall provide for the allocation of tax credits among participating\nlandlords requesting credits. The guidelines shall be exempt from the\nAdministrative Process Act (§ 2.2-4000 et seq.).\n\nF. In no case shall the amount of credit taken by a participating landlord for\nany taxable year exceed the total amount of tax imposed by this chapter for the\ntaxable year. If the amount of credit issued by the Department of Housing and\nCommunity Development for a taxable year exceeds the landlord’s tax\nliability imposed by this chapter for such taxable year, then the amount that\nexceeds the tax liability may be carried over for credit against the income\ntaxes of the participating landlord in the next five taxable years or until the\ntotal amount of the tax credit issued has been taken, whichever is sooner.\nCredits granted to a partnership, limited liability company, or electing small\nbusiness corporation (S corporation) shall be allocated to the individual\npartners, members, or shareholders, respectively, in proportion to their\nownership or interest in such business entities.\n\nG. 1. For fiscal years beginning before July 1, 2024, in the event that the\namount of the qualified requests for tax credits for participating landlords in\nthe fiscal year exceeds $250,000, the Department of Housing and Community\nDevelopment shall prorate the tax credits among the qualified applicants.\n\n 2. For fiscal years beginning on and after July 1, 2024, in the event that the\n amount of the qualified requests for tax credits for participating landlords\n in the fiscal year exceeds $500,000, the Department of Housing and Community\n Development shall prorate the tax credits among the qualified applicants.\n\nHISTORY: 2010, cc. 520, 608; 2013, cc. 23, 374; 2016, c. 305; 2019, cc. 19, 272;\n2020, cc. 430, 1032; 2022, c. 252; 2024, c. 322.","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}}