Commercial and Industrial Incentive Program

How it works

Chesterfield County allows a partial real estate tax exemption for the rehabilitation, renovation, or replacement of older commercial or industrial structures. If approved, the exemption lasts 10 years and transfers with the real estate.

The amount exempt from tax is based solely on the increase in assessed value resulting from the eligible work and does not change over the 10-year period.

What the money covers

The program covers qualifying rehabilitation, renovation, or replacement of commercial or industrial structures. The county also notes special treatment for certain structures and minimum age and assessed-value thresholds.

How to apply

Apply using the Real Estate Tax Exemption application. Community Enhancement administers the program, with requirements involving Building Inspection and Real Estate Assessments.

The county’s process includes these steps:

• appropriate building permits must first be issued by Building Inspection
• within 24 months after the filing date of the building permit application, the property owner may apply for an exemption
• all work must be completed and approved by Building Inspection
• Real Estate Assessments must be notified of completion by December 31 for the exemption to be effective January 1 of the following calendar year

Timing and deadlines

The exemption is effective for 10 years after approval. Work must be completed and reported by the December 31 deadline to make the exemption effective the following January 1.

Other notes

• All increases in assessed value while the work is underway are taxable annually until the project is completed and approved.
• If the market value of the qualified real estate falls below the base value in any year, no credit or refund is provided.