April 26, 2023

About the Virginia Livable Home Tax Credit (LHTC)

About the Virginia Livable Home Tax Credit (LHTC)

The Livable Home Tax Credit (LHTC) program in Virginia aims to improve universal visitability and accessibility in residential units by offering state tax credits on the purchase of new residential units or on the retrofitting of existing residential units to individual residents and licensed contractors who file Virginia state income taxes.

The tax credit amounts are as follows:

  • Up to $5,000 for the purchase or construction of a new accessible residence
  • Up to 50% of the cost (not to exceed $5,000) to retrofit existing units

If the tax credit is more than the individual’s or licensed contractor’s tax liability, then the excess amount can be carried forward for up to seven years.

Program eligibility requirements include:

  • The building must include three features of universal visitability or three accessibility features that meet the requirements of the existing standard.
  • The retrofitting of an existing residential unit must include at least one accessibility feature that is a permanent part of the structure and must meet the requirements of the existing standard.
  • All visitability and accessibility features must conform to the applicable provisions of the Uniform Statewide Building Code.

Accessibility features that already comply with existing American with Disability Act, Equal Opportunity, Fair Housing, or other federal, state, or local requirements are not eligible for the Livable Home Tax Credit.

No more than one person can claim a tax credit for the same project, and rental units are not eligible. Applications must be received by January 31st of the year after the purchase or retrofitting was completed.

You can find full program guidelines on the LHTC web page.

If the LHTC program issues more than $1 million in tax credits in a fiscal year, the Department of Housing and Community Development (DHCD) will prorate the amount of credits among all eligible applicants.

Download the application on the LHTC web page.

DISCLAIMER: The information gathered here is deemed reliable as of the date of publication, but each aforementioned agency has the right to change its information, rates, and processes. Visit the COPTC web page for the most updated information.

For additional information on this topic contact Evelyn Miller, Partner, at 202-753-7400.

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