Renovate Your Unit and Get a Tax Credit!

By Michael Leventhal, Arlington County Historic Preservation Coordinator

All of the buildings in Arlington Village are listed in both the National Register of Historic Places and the Virginia Landmarks Register; thereby making all of them "certified historic buildings."  The Commonwealth of Virginia has a tax credit available for owners of "certified historic buildings" who undertake the rehabilitation of their property.  You can take advantage of these tax credits by meeting the requirements outlined below.

Beyond the "certified historic building" requirement, there are other criteria a property owner must meet in order to qualify for the Virginia tax credit for the rehabilitation of historic buildings.  These criteria are:

 
1)  The amount of money spent on the rehabilitation (including architecture and engineering fees, contractor fees, and materials) must amount to a sum equal or greater than 25% of the value of one's home.  Look at your 2011 Arlington County real estate tax assessment and find the center column (labeled "improvement") which is the assessed value of the condo.  You want the value of the building, minus the value of the land.   Divide this figure by 25% and that is the amount you need to spend on a rehablitiation in order to qualify for this Virginia tax credit.  Please note that this tax credit does not include credit for the cost of kitchen appliances (stove, refrigerator, dishwasher, washer/dryers) or landscaping.  It does include all walls (interior/exterior), ceilings, floors, roofs, HVAC, electrical and plumbing, bathroom fixtures (toilets, sinks, tubs/showers) and kitchen cabinets.

2)  You must fill out 3 forms for the VA Department of Historic Resources, which is the State agency charged with approving all projects applying for a tax credit based on the rehabilitation of a historic building.  Along with filling out these three forms, all applications must include floor plans, design plans (if applicable) and "before" and "after" photos of the exterior and all interior spaces.  The good news is that the County's Historic Preservation Program will take the necessary photos and complete the required forms for you for free.  The VA Dept of Historic Resources does however charge for its review, though it is a nominal fee.

It should be known that the VA Dept of Historic Resources has a very strict view of looking at changes to historic buildings.  The County's Historic Preservation Program staff will be able to advise and guide you through the process....again, at no charge.  The County staff does advise all applications not start before an initial approval is given by the VA Dept of Historic Resources.  And, of course, you must get Covenants Committee approval for any structural changes to your unit.

To best start this process, contact the County's Historic Preservation Program staff at 703-228-3813 or email Michael Leventhal, the County's Historic Preservation Coordinator at .  Should you wish to see more information about this State tax credit program, go to the Virginia Dept. of Historic Resources web site, and look under tax credits on the left of the web site.

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