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Rehabilitation Tax Exemption
Estimate Your Benefit
Actual savings will be based on the increased assessed value of the improvement, not the amount spent on the improvement and will be verified by the Real Estate Assessor after construction is completed.
Program Incentives by Property Type
The following information summarizes and explains this program. It does not replace the actual governing code in the Chesterfield County Code of Ordinances (Chapter 9, Article II, Division 3).
For more information about the rehabilitation tax exemption, visit the Community Enhancement Frequently Asked Questions webpage.
Residential Incentive Program
The goal of the rehabilitation tax exemption program is to protect and preserve our aging neighborhoods. Chesterfield County allows a partial real estate tax exemption for the rehabilitation, renovation or replacement of older residential structures. Upon approval, the partial exemption will be in effect for 15 years and transfers with the real estate. The amount of the exemption is based solely on the increase in assessed value, not the amount spent on the improvement project, and does not change over the 15-year period.
To Qualify
This program is available to property owners who rehabilitate, renovate, or replace residential structures, subject to the following criteria:
- Residential structures must be at least 25 years of age.
- Structures between 15 and 25 years of age may qualify if the real estate assessment reflects an above normal (10 percent or greater) physical depreciation.
- The structure must be lawfully used for residential purposes.
- The rehabilitation, renovation or replacement must increase the assessed value of the structure by at least 10 percent.
- For multifamily residences, the rehabilitation, renovation or replacement must not increase the total square footage of the structure by more than 30 percent.
- For residential structures other than multifamily, the exemption shall apply only to the first 200 percent of any increase in square footage due to replacement or rehabilitation.
- Landscaping, driveways, fencing, or other detached improvements do not qualify under this program.
The Process
The Department of Community Enhancement administers this program, which incorporates the following requirements:
- Appropriate building permits must first be issued by Chesterfield Building Inspection.
- Within twenty four (24) months after the filing date of the building permit application for the rehabilitation, renovation or replacement, the property owner may apply for an exemption.
- All increases in the assessed value during the time of the rehabilitation, renovation or replacement is being performed shall be taxable annually until all work has been completed and approved.
- All work must be completed and approved by Chesterfield Building Inspection.
- The Department of Real Estate Assessments must be notified of such completion of work by December 31 in order for the exemption to be effective January 1 of the following calendar year.
- In any year in which the market value of the qualified real estate decreases below the base value, no credit or refund shall be provided.
Apply Now
Complete the Rehabilitation Tax Exemption application.
- On-line residential application (fastest option)
- Residential Application (PDF) (download and complete)
Submit application by
Mailing Address:
Community Enhancement
PO Box 40
Chesterfield VA 23832
Email:
Community Enhancement
Commercial and Industrial Incentive Program
Chesterfield County allows a partial real estate tax exemption for the rehabilitation, renovation or replacement of older commercial or industrial structures. Upon approval, the partial exemption will be in effect for 10 years and transfers with the real estate. The amount exempt from tax will be based solely on the amount of increase in assessed value resulting from the rehabilitation, renovation or replacement and does not change over the 10-year period.
To Qualify
This program is available to property owners who rehabilitate, renovate, or replace commercial structures or industrial, subject to the following criteria:
- Commercial or industrial structures must be at least 20 years of age. (15 years if located in a Technology Zone).
- Motel or hotel structures must be at least 35 years of age.
- The exemption shall apply to 200 percent of the square footage of the original structure(s) replaced or rehabilitated for residential use.
- In any year in which the market value of the qualified real estate decreases below the base value, no credit or refund shall be provided.
- The rehabilitation, renovation or replacement must increase the assessed value by 10 percent or more, or by five (5) percent or more for structures with an existing assessed value of at least $10 million.
The Process
The Department of Community Enhancement (CE) administers this program, which incorporates the following requirements:
- Appropriate building permits must first be issued by Chesterfield Building Inspection.
- Within twenty four (24) months after the filing date of the building permit application for the rehabilitation, renovation or replacement, the property owner may apply for an exemption.
- All increases in the assessed value during the time of the rehabilitation, renovation or replacement is being performed shall be taxable annually until all work has been completed and approved.
- All work must be completed and approved by Chesterfield Building Inspection.
- The Department of Real Estate Assessments must be notified of such completion of work by December 31 in order for the exemption to be effective January 1 of the following calendar year.
Apply Now
Complete the Rehabilitation Tax Exemption application
- On-line Commercial and Industrial Application (fastest option)
- PDF - Commercial and Industrial Application (download & complete)
Submit application by
Mail:
Community Enhancement
PO Box 40
Chesterfield VA 23832
Email:
Community Enhancement
Historic Incentive Program
Rehabilitation of any structure that has been designated as a county historical landmark or is located in an area that has been designated a county historical district may be considered for partial exemption from real estate taxes. For those properties that qualify, the amount of the partial tax exemption is based on the amount of increase in assessed value that is attributable to the rehabilitation work. This exemption does not change, and it transfers with the real estate for a ten-year period. The exemption is limited to a $500,000 increase in assessed value.
To Qualify
This program is available to property owners who rehabilitate historic structures meeting the following criteria:
- All improvements made to the structure must be approved by the County Preservation Committee.
- The structure must be a designated county historical landmark or located in an area that has been designated a county historical district.
- The structure must be 50 years or older.
- Following the completion of the rehabilitation or renovation, the assessed value of the structure must be increased by at least 25 percent.
- In any year in which the market value of the qualified real estate decreases below the base value, no credit or refund shall be provided.
The County Preservation Committee may be called at 804-748-1052.
The Process
The Department of Community Enhancement administers this program, which incorporates the following requirements:
- The appropriate building permits must first be issued by Chesterfield Building Inspection.
- Within twenty four (24) months after the filing date of the building permit application for the rehabilitation, the property owner may apply for an exemption.
- The Department of Real Estate Assessments must be notified of such completion of work by December 31st in order for the exemption to be effective January 1st of the following calendar year.
- All increases in the assessed value during the time the rehabilitation work is being performed shall be taxable annually until all work has been completed and approved.
- All exemptions shall be effective on January 1 of the year following completion and approval of the rehabilitation work.
Apply Now
Complete the Rehabilitation Tax Exemption application.
- On-line Historic application (fastest option)
- Historic PDF (download and complete)
Submit application by
Mail:
Community Enhancement
PO Box 40
Chesterfield VA 23832
Email:
Community Enhancement