Livable Home Tax Credit

How it works

The Livable Home Tax Credit (LHTC) is a Virginia state tax credit administered by the Department of Housing and Community Development for the purchase of a new accessible residence or the retrofitting of an existing residence.

What the money covers

DHCD says the program is designed to improve accessibility and universal visitability in residential units. The main DHCD page states that tax credits are available for:

• Up to $6,500 for the purchase/construction of a new accessible residence
• Up to 50% of the cost of retrofitting existing units, not to exceed $6,500

Amounts and limits

• Any unused credit can be carried forward for up to seven years.
• If annual credits exceed the $2 million allocation, DHCD prorates credits among eligible applicants.

How to apply

• DHCD administers the credit and applicants must follow DHCD’s application procedure.
• Applications are due by January 31 of the year after the purchase or retrofitting work is completed.
• To claim the credit, taxpayers attach the certification to the applicable return.

Timing and deadlines

• The program is ongoing.
• The main page does not state a closing date.
• Applications are due by January 31 after completion of the work.