A flat 25% state credit with a per-taxpayer annual claim limit rather than a per-project cap — large projects are time-shifted, not capped out.
| Quick Facts | |
|---|---|
| Credit amount | 25% of eligible rehabilitation expenses |
| Annual claim limit | $7,500,000 per taxpayer per year (2025+), raised from the prior $5 million limit |
| Carryforward | 10 years |
| Eligibility | Certified historic structure; material rehabilitation test; certification through the Virginia Department of Historic Resources |
| Owner-occupied | Available for owner-occupied residential rehabilitations as well as income-producing property |
| Stacks with | 20% federal historic credit; federal LIHTC and the Virginia Housing Opportunity Tax Credit on qualifying conversions |
Virginia is unusual in two respects: the 25% rate applies without the graduated tranches North Carolina uses, and the limit is an annual claim cap per taxpayer rather than a per-project cap. That structure rewards careful allocation across taxable years and across investors, and it means a large project is rarely capped out — it is time-shifted.
Combined with the 20% federal credit, a qualifying Virginia rehabilitation recovers 45% of eligible expenses in credits.
We manage the Virginia Department of Historic Resources certification alongside the federal Parts 1 through 3, structure the claim across taxpayers and years to work within the annual limit, and place the combined federal and state package.
Assess my Virginia projectOfficial references: Va. Code §58.1-339.2; Virginia Department of Historic Resources.
25% of eligible rehabilitation expenses for a certified historic structure, subject to a $7.5 million per-taxpayer annual claim limit for 2025 and forward, with a 10-year carryforward.
No. The limit is an annual claim cap per taxpayer rather than a per-project cap, which means a large project is generally time-shifted across years and taxpayers rather than permanently capped.
Yes. A qualifying Virginia rehabilitation combines the 25% state credit with the 20% federal credit, recovering 45% of eligible expenses in credits.
Yes — the Virginia Housing Opportunity Tax Credit, the state match to the federal LIHTC. See our Virginia guide.
Virginia's annual claim structure rewards planning. Send us the project and we'll map the claim years.
