Rehabilitation Tax Exemptions and Incentives

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, commercial and industrial properties, and historic properties. View the Chesterfield County code of ordinances (Chapter 9, Article II, Division 3, Section 9.29-32) for the full explanation of this program. 

  1. Residential Properties
  2. Commercial and Industrial Properties
  3. Historic Properties
  4. Non-Eligible Projects

Residential Incentive Program

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. 

Program Eligibility

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% 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%.
  • For multifamily residences, the rehabilitation, renovation or replacement must not increase the total square footage of the structure by more than 30%.
  • For residential structures other than multifamily, the exemption shall apply only to the first 200% of any increase in square footage due to replacement or rehabilitation.
  • Landscaping, driveways, fencing or other detached improvements do not qualify under this program.

Program Process

Community Enhancement administers this program, which incorporates requirements with from the Building Inspection and Real Estate Assessments departments. County staff reviews your application for completeness and determines whether it may qualify for the exemption program.

Building Inspection

  • Appropriate building permits must first be issued by Building Inspection.
  • Within 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 work must be completed and approved by Building Inspection.

Real Estate Assessments

  • 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.
  • Real Estate Assessments must be notified of such completion of work by Dec. 31 in order for the exemption to be effective Jan. 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 for the Residential Incentive Program

Complete the online residential application or download the residential application (PDF). The PDF version of the application can be emailed to Community Enhancement or mailed to:

Community Enhancement
P.O. Box 40
Chesterfield, VA 23832

Tax Exemption Estimate Calculator

Estimate Your Benefit

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Minimum amount of improvement to qualify: TBD

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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.

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