Virginia allows for a subtraction for any gain or income recognized by the taxpayer in connection with the Historic Rehabilitation Tax Credit to the extent that this income was included in your federal adjusted gross income.
Where do I enter it?
- State Section
- Nonrefundable Credits
- Historic Rehabilitation Tax Credit
What else do I need to know?
- This is a nonrefundable credit. It can only reduce the amount of tax you owe. It cannot generate a refund on your state return. However, if the amount of the credit exceeds your tax liability, you may carry over the unused portion for ten years or until the credit is used fully, whichever happens first.
- To claim the credit authorized under this section, the taxpayer should apply to the Virginia Department of Historic Resources to determine the amount of eligible rehabilitation expenses and issue a certificate to the taxpayer. The taxpayer should attach the certificate to the Virginia tax return.