The Virginia Livable Home Tax Credit

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Increasing Accessible Housing Options

The Virginia Livable Home Tax Credit (LHTC) program provides state tax credits for building, purchasing, or remodeling homes and incorporating accessibility and universal design features. This year, the Virginia General Assembly increased the LHTC from $2,000 to $5,000 and expanded eligibility for the credit to include home builders to further encourage expansion of accessible housing opportunities.

New Construction:  To qualify for the tax credit, a new home must include at least three universal design features.

Existing Homes:  To qualify for the tax credit, an existing home must include at least one universal design feature. 

Examples of universal design features include:  

  • Accessible route to a zero-step entrance into the residence
  • Zero-step entrance into the residence
  • Doors with at least 32 inches of clear width
  • Hallways and passages with at least 36 inches of clear width
  • Accessible light switches, electrical outlets and environmental controls
  • Accessible bathroom
  • Accessible and useable kitchen facilities
  • Lifts
  • Elevators
  • Sensory Modifications (Alarms, appliances and controls designed to assist sensory disabled persons)

How to Apply for a Virginia Livable Home Tax Credit:

  • When to Apply: All applications must be filed by February 28 of the year after the tax year in which the purchase, updating, or building was completed.

  • Documentation:  Supporting documentation must be submitted with the application for the tax credit.
    • New Construction:  For all cases in which the new units were purchased, a copy of the executed sales contract must be attached with the application.  
    • Existing Homes:  For all cases in which updating or retrofitting occurred documentation including copies of scope of work, work specifications, construction contracts, invoices and/or canceled checks or cost of payment must be attached with the applications.

The Virginia Department of Housing and Community Development will issue tax credits to all eligible applications that attach tax returns with their application to claim the tax credit.

To apply for the Virginia Livable Home Tax Credit, visit: http://www.dhcd.virginia.gov/index.php/housing-programs-and-assistance/tax-credit-programs/livable-homes-tax-credit.html