Rehabilitation Tax Credits
The Rehabilitation Tax Credits are reductions in income tax liability for taxpayers who rehabilitate historic buildings. Credits are available from both the federal government and the State of Virginia.
Rehab Requirements for the City of Radford
Structure must be at least 30 years old
Must write a letter to the Commissioner of the Revenue stating property location and improvements made. These improvements must be at least 40% (Residential) and 60% (Commercial) of original structure. No additions can be included in this percentage.
Must enclose a list of all expenses incurred, to whom the expenses were paid and the amounts of each along with receipts.
Pay $20 application fee to the Treasurer, who then gives a copy of the paid receipt to the Commissioner of the Revenue.
Submit after all work is completed by January 1st of the calendar year following completion.
The rehabilitation work for the entire project must meet The Secretary of the Interior’s Standards for Rehabilitation.
In 1971, the Virginia General Assembly enacted a law permitting localities to adopt a program of special assessments for agriculture, horticultural, forest and open space lands (Section 58.1-3299 through 58.1-3244 of the Code of Virginia). Radford City has adopted an ordinance based on State Law to conserve acreage that may otherwise be developed.
Virginia State Code requires a minimum of 5 contiguous (unimproved) acres. A single acre is excluded for a house-site (if dwelling exists) or a proposed house-site. The remaining 5 acres or more may qualify for Land Use taxation.
The purpose of the program is to encourage the proper use of such real estate in order to assure good sources of agricultural, horticultural and forest products and of open spaces. It also acts to conserve natural resources to prevent erosion and protect safe water supplies, to preserve natural beauty and to promote land-use planning and proper development of real estate.
When your land qualifies for Land Use Taxation, the parcel receives a lower assessment than the fair market assessment. This is not a total exoneration, but rather a deferment. Taxpayers owning real estate that meets the qualifications may enter the program by applying in person at the Commissioner of the Revenue Office.