A tax credit is allowed for businesses making donations to approved neighborhood assistance projects benefiting low income individuals. Credits are certified through the Virginia Department of Social Services . The unused amount of the credit can be carried over for 10 years. The Virginia Department of Environmental Quality certifies recycling equipment for this credit, which is in effect until January 1, 2001. Manufacturers receive exemptions for purchases used directly in production, including machinery, tools, spare parts, industrial fuels, and raw materials.
Distributors receive exemptions for items purchased for resale.
All businesses receive exemptions for custom computer software, items used in research and development, and certified pollution control equipment and facilities. The exemption runs with the building for a period of five years and is equal to the difference in the appraised value immediately before rehabilitation and the appraised value after completion of rehabilitation. Application for the exemption must be made prior to beginning any construction because a preconstruction appraisal is required for participation. In order to become eligible for this incentive, the rehabilitation must occur within the boundaries of one of Roanoke's local Enterprise Zones . The amount of the exemption from real property taxation shall be an amount equal to the difference in the appraised value of the structure immediately before rehabilitation or renovation, and immediately after rehabilitation or renovation, as determined by the Director of Real Estate Valuation.