58.1-339.7 - Livable Home Tax Credit.

§ 58.1-339.7. Livable Home Tax Credit.

A. For taxable years beginning on and after January 1, 2000, any taxpayer whopurchases a new residence or retrofits or hires someone to retrofit anexisting residence, provided that such new residence or the retrofitting ofsuch existing residence is designed to improve accessibility, provideuniversal visitability, and meets the eligibility requirements established byguidelines developed by the Department of Housing and Community Development,shall be allowed a credit against the tax imposed pursuant to § 58.1-320 ofan amount equal to $500, or $2,000 for taxable years beginning on or afterJanuary 1, 2010, for such new residence or 25 percent of the total amountspent for the retrofitting of such existing residence. For taxable yearsbeginning on or after January 1, 2010, the 25 percent shall increase to 50percent. The amount of the credit allowed for the retrofitting of an existingresidence shall not exceed $500, or $2,000 for taxable years beginning on orafter January 1, 2010. Such a credit shall require application by thetaxpayer as provided in subsection C. For purposes of this section, thepurchase of a new residence means a transaction involving the first sale of aresidence or dwelling.

B. In no event, however, shall the credit allowed under subsection A exceedthe total amount of tax imposed by this chapter in the year in which suchpurchase or retrofitting is completed. If the amount of the credit exceedsthe taxpayer's tax liability for such tax year, the amount that exceeds suchliability may be carried over for credit by the taxpayer in the next fivetaxable years until the total amount of the tax credit has been taken.

C. Eligible taxpayers shall apply for the credit by making application to theDepartment of Housing and Community Development. The Department of Housingand Community Development shall issue a certification for an approvedapplication to the taxpayer. The taxpayer shall attach the certification tothe individual income tax return. The total amount of tax credits grantedunder this section for any taxable year shall not exceed $1 million. In theevent applications for the tax credit exceed the $1 million amount, theDepartment of Housing and Community Development shall apportion the money bydividing the $1 million by the total amount of tax credits applied for todetermine the percentage each taxpayer shall receive.

(1999, c. 404; 2007, cc. 68, 765; 2009, cc. 15, 496.)