Title 58.1. Taxation
Chapter 38. Miscellaneous Taxes
§ 58.1-3855. Local incentives for repurposing underutilized structures for residential use.
A. For purposes of this section, "qualifying residential conversion" means the same as that term is defined in § 58.1-3221.7.
B. Any locality may, by ordinance, establish a program to grant tax incentives or provide regulatory flexibility to encourage qualifying residential conversions of buildings in the locality. Any such incentive or regulatory flexibility provided may consider population density and shall be proportionate to the amount of expenses incurred in connection with the qualifying residential conversion of a building, excluding (i) any costs associated with the acquisition of any building or interest thereon, (ii) any expenses incurred that are attributable to the enlargement of an existing building, or (iii) any expenses incurred in connection with the conversion of a building that is allocable to the portion of the property that is a tax-exempt use property under Virginia law.
C. The tax incentives or regulatory flexibility may include (i) a reduction in permit fees, (ii) a streamlined process for the approval of permits, or (iii) a reduction in any gross receipts tax on a qualifying residential conversion of a building or on businesses that maintain a building that has undergone a qualifying residential conversion as defined by the local ordinance.
2026, c. 994.
