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Virginia Livable Home Tax Credit

Virginia Department of Housing and Community Development · State program

$6,500 maximum; or 50% of retrofit cost up to $6,500

Virginia offers a state tax credit for making a residence more accessible, with up to $6,500 for a new accessible home or for retrofitting an existing home. It is not a wildfire-hardening program, but it is a current state incentive that can reduce the cost of certain permanent home improvements.

Last verified: July 28, 2026
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Program details

How it works

The Virginia Livable Home Tax Credit is administered by the Virginia Department of Housing and Community Development (DHCD). Eligible taxpayers can claim a credit against Virginia individual income tax, corporation income tax, or pass-through entity tax.

What the money covers

  • $6,500 for the purchase or construction of a new accessible residence.
  • 50% of the cost of retrofitting an existing residence, up to $6,500.

Amounts and caps

  • The credit cannot be greater than the taxpayer’s liability.
  • Unused credit may be carried forward for 7 years.
  • DHCD may not issue more than $1 million in credits per fiscal year; if applications exceed that amount, DHCD prorates credits among eligible applicants.
  • For fiscal years beginning on or after July 1, 2023, the annual cap is $2 million.

How to apply

Applicants must follow DHCD’s application procedure. The official tax page says applications are due to DHCD by January 31 of the year after the purchase or retrofitting work is completed.

Important limitation

This is an accessibility tax credit, not a wildfire mitigation or home-hardening credit.

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