The Virginia State Historical Rehabilitation Tax Credit for income-producing properties is designed to work with or independent of the federal Historic Tax Credit and provides a 25 percent credit for qualified rehabilitation expenditures (QREs). To qualify, a building must be a certified historic structure: either listed on the National Register of Historic Places or the Virginia Landmarks Register individually, as a contributing structure in a historic district, or eligible for listing. The QREs for the project must total at least 50 percent of the assessed value of the building for the year prior to the start of rehabilitation. All work must follow the Secretary of the Interior’s Standards for Rehabilitation and be approved by the Virginia State Historic Preservation Office. The credit may be claimed in the year the rehabilitation is complete and can be carried forward for ten years.
Who can use the credit?
The state credit for Virginia may not be sold or transferred, but the credits may be syndicated through limited partnerships.
Brookland Park Plaza Apartments
Affordable Senior Housing
Client: Community Preservation Development Corporation
Project Costs: $11.4 million
HTC equity: OVer $4.2 million
Clarendon Court Apartments
Client: McCormack Baron
Project Costs: $15.2 million
HTC equity: Over $2.9 million