Tax credits available for rehabilitating historic properties

- Posted on Jun 13, 2018 - 01:15 PM

Property owners in the Mathews Downtown Historic District who rehabilitate their properties might want to know that they are eligible for state and federal tax credits.

Julie Langan, director of the Virginia Department of Historic Resources, said in a November 2017 letter that the honorary designation as a historic district contributing property carries no property restrictions for the owner, but it does offer a couple of benefits.

The first is Virginia’s Rehabilitation Tax Credit, which provides a 25 percent tax credit on eligible expenses to property owners who rehabilitate the properties according to preservation standards, said the letter. The second is a 20 percent federal Rehabilitation Tax Credit on qualified rehabilitation expenses for properties used for income-producing purposes.

In addition, said Langan, properties within the district are eligible for a “Virginia Treasure” certificate signed by the governor.