Tax Incentives
The Office of Real Estate Valuation and the Department of Planning, Building and Development administer two programs to encourage home and business owners to make energy related improvements to their properties.
Solar Tax Abatement
This is the tax incentive for use of certified solar energy equipment. It applies to properties where the owner has installed new solar equipment, facilities or devices, as well as to properties that have existing solar equipment, facilities or devices. The exemption is effective for five years, and the amount is calculated by applying the real estate tax rate to the value of the solar components and subtracting that amount from the total real estate tax due on the property. Alternatively, the incentive may be applicable, using a similar formula, if the solar components are taxable as machinery and tools.
Energy Efficiency
This is the special tax rate on use of certain energy-efficient buildings. This program is designed for buildings that exceed the Virginia Statewide Building Code efficiency standards by 30%. Certification must be made by a qualified professional, and the incentive must be applied for by the owner of the building. The tax exemption commences on July 1 of the tax year following the date an application is approved, and remains in effect for that tax year and the following four tax years.
Additional Information
Property owners may apply for either of these incentives through the city’s Real Estate Valuation office. For more information, please visit the Tax Relief and Incentive Programs page.
Solar Tax Abatement
This is the tax incentive for use of certified solar energy equipment. It applies to properties where the owner has installed new solar equipment, facilities or devices, as well as to properties that have existing solar equipment, facilities or devices. The exemption is effective for five years, and the amount is calculated by applying the real estate tax rate to the value of the solar components and subtracting that amount from the total real estate tax due on the property. Alternatively, the incentive may be applicable, using a similar formula, if the solar components are taxable as machinery and tools.
Energy Efficiency
This is the special tax rate on use of certain energy-efficient buildings. This program is designed for buildings that exceed the Virginia Statewide Building Code efficiency standards by 30%. Certification must be made by a qualified professional, and the incentive must be applied for by the owner of the building. The tax exemption commences on July 1 of the tax year following the date an application is approved, and remains in effect for that tax year and the following four tax years.
Additional Information
Property owners may apply for either of these incentives through the city’s Real Estate Valuation office. For more information, please visit the Tax Relief and Incentive Programs page.