Historic Rehabilitation Tax Credits

The preservation of historic buildings benefits communities and connects us to our heritage, enriching the quality of our lives in many tangible and intangible ways. Their preservation also provides demonstrable economic benefits.

Through the federal and state rehabilitation tax credit programs, property owners are given substantial incentives for private investment in preservation, resulting in enormous advantages to the public.

Both the federal and state tax credit programs are administered in Virginia through the Virginia Department of Historic Resources (DHR).

State tax credits are available for owner-occupied, as well as income-producing buildings. If your property is income-producing, you may also be able to take advantage of federal tax credits. Additional information and assistance with tax-credit projects may be requested from DHR’s Richmond office. Contact Chris Novelli at (804) 482-6097.

What buildings qualify for the tax credit program?

The credits described above are available only for Certified Historic Structures, which are defined as follows:

Under the Federal program, a certified historic structure is one that is either:

• Individually listed on the National Register of Historic Places, or
• Certified as contributing to a district that is so listed.

Under the State program, a certified historic structure is one that is:

• Individually listed on the Virginia Landmarks Register, or
• Certified as eligible for listing, or
• Certified as a contributing structure in a district that is so listed.

Comparison of Federal and State Historic Rehabilitation Tax Credits

Rehabilitation Tax Credits Frequently Asked Questions

How can I get additional information?

• For additional information about the State rehabilitation tax credit program, check out the Virginia Department of Historic Resources website. 
• For additional information on the Federal program, check out the National Park Service Technical Preservation Services website.

A helpful resource is the DHR Handbook and Resource Guide for Owners for Virginia’s Historic Houses. The goal for this handbook is to help owners of Virginia's historic  homes begin to understand their houses and to learn where to find the answers to protect, preserve, and maintain them. This basic compilation of resources and explanations should help homeowners to understand, plan, investigate, evaluate, and carry out the most sympathetic and cost effective repairs to their historic homes. It is meant to be a simple and readable technical manual, touching on recurring themes and questions that are repeatedly directed to the staff at the Virginia Department of Historic Resources.
 
Another helpful resource is the DHR Historic Trades & Consultants Directory.

Please Note: DHR provides the Trades & Consultants Directory as a free service to property owners, local governments, and state and federal sponsors in Virginia seeking the assistance of people and professional firms with expertise in historic preservation. The directory is not an endorsement by DHR or the City of Portsmouth or a demonstration of professional competence. As a government agency, DHR  and the City of Portsmouth cannot recommend the services of an individual consultant and does not accept responsibility for the performance of any consultant. The directory should not be construed as an “approved” list. Determining the suitability of the providers is the responsibility of the property owners. It is also the responsibility of the property owner to obtain all appropriate permits and to ascertain that contractors have the appropriate licenses. For more information, visit the DHR website.