Rehabilitation Tax Exemption

Rehabilitation Tax Exemption Tile

Estimate Your Benefit

What is the type of structure?

What is your building's current assessed value (improvements only)?

Minimum amount of improvement to qualify: TBD

How much do you plan to spend on eligible improvements?

Estimated annual savings: TBD
Estimated total savings over 15 years: TBD

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

  1. Residential Properties
  2. Commercial & Industrial Properties
  3. Historic Properties

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.

Submit application by

Mailing Address:
Community Enhancement
PO Box 40
Chesterfield VA 23832

Community Enhancement