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Virginia Historic Rehabilitation Tax Credit

Incentives for Restoring Historic Properties

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Business Tax Specialist

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Published on 4 months ago
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Virginia Historic Rehabilitation Tax Credit

The Virginia Historic Rehabilitation Tax Credit allows taxpayers to subtract from their Virginia taxable income any gain or income recognized in connection with the federal Historic Rehabilitation Tax Credit, to the extent it is included in federal adjusted gross income.

Eligibility and Requirements

  • The rehabilitation work must be certified by the Virginia Department of Historic Resources as consistent with the Secretary of the Interior’s Standards for Rehabilitation.
  • The request for certification must be submitted within 1 year of completing the rehabilitation work.
  • Applications for the credit can be obtained by contacting the Virginia Department of Historic Resources at 2801 Kensington Avenue, Richmond, VA 23221, or by visiting https://www.dhr.virginia.gov/programs/tax-credits/.

Claiming the Credit

  • The credit is claimed as a subtraction on the Virginia income tax return (Form 760).
  • Any unused credit may be carried forward for up to 10 years.
  • The total credit claimed by each taxpayer, including carryovers, cannot exceed $7.5 million in any taxable year.

Documentation and Support

  • Taxpayers must work with the Virginia Department of Historic Resources to develop appropriate documentation for the project.
  • For detailed instructions, refer to Form 760 and Schedule CR, which outline the process for claiming the credit and provide guidance on eligible projects.

Source:
Form 760 Instructions
Schedule CR Instructions
Form LPC-1 Schedule B

Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.

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Key Takeaways

  • Understanding tax deductions can significantly reduce your tax liability
  • Keep detailed records of all tax-related expenses and documents
  • Consult with a tax professional for complex situations

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