Heritage Tax Incentive Program

The Heritage Tax Incentive Program supports the preservation, rehabilitation and seismic upgrading of heritage-designated buildings.

The program provides a temporary property tax exemption (up to 10 years) to help offset eligible seismic upgrading costs.

Projects may include:

Conversion to residential use (typically upper-storey housing)
Rehabilitation of non-residential buildings (commercial, institutional or industrial)

For Residential Tax Incentive Program Applications, the proposed work must result in substantial rehabilitation and create new residential uses on the upper floors with ground-level commercial.

For Non-Residential Tax Incentive Program Applications, the proposed work must result in substantial rehabilitation or adaptive new use for a vacant or underutilized space, or a new economic use of the building.

Applications are reviewed by staff and the Victoria Civic Heritage Trust, and require Council approval.

Prepare Your Application

Review the requirements below before applying.

Before you apply, make sure you:

Confirm your building is heritage designated
Confirm your project includes substantial rehabilitation and/or seismic upgrading
Review conservation standards and permit requirements
Meet with the City’s Senior Heritage Planner to have a preliminary discussion on the proposal
Do not start work before approval (projects are not eligible retroactively for tax exemption)

Your application will include:

Cover letter outlining:
- Detailed description of the proposed development, highlighting new repairs and capital improvements
- Seismic upgrading costs (separate from total project costs)
- Requested tax exemption amount and term
Project Information:
- A list of all eligible improvements (see program eligibility below)
- Total value of all eligible work
- Total project cost
Heritage Documentation
- Photos
- Historic building plans (if available)
A Heritage Conservation Plan describing the approach to preserve the heritage elements of the structure, which may include a Building Condition Report and/or Heritage Impact Assessment
Full set of architectural and structural drawings
Architectural or structural report stating the strategy for the seismic upgrade work
Structural engineer’s certificate for seismic upgrading
Cost estimates for seismic upgrades: minimum two quotes per trade or portion of seismic work (seismic upgrading costs must be separated from other construction costs)
Proposed construction schedule
Survey plan showing any above/below grade encroachments
- Elevations (if there are encroachments)
Current Certificate of Title (not dated more than 30 days prior to submission) available from the Land Title Office
Copy of any title restrictions, such as covenants, easements or rights of way
Letter of authorization from all owners
- All owners on title must provide a letter authorizing this application (if the only owner on title is the applicant, a letter of authorization is not required)
- Company or Corporate Ownership: If the property is owned by a business or corporation, provide a letter on company letterhead authorizing the applicant to apply on the company's behalf, even if the applicant is the owner of the company
Completed application submitted online.

For Non-Residential Tax Incentive Program Applications:

A development pro forma prepared by a third-party consultant will be required during the application review. The pro forma provides detailed costs for the projects, overall budget breakdown and cash flow, including:
- A project summary or overview
- Financing details
- Two cost estimates of the work to be done, for each trade and portion of seismic work
- Leasing specification
- Project soft costs
- Project hard costs
- Operating statement
- How the tax incentive will affect the project

Program applications require detailed drawings and technical information. Review the sections below to understand what to include in your submission.

View the Heritage Tax Incentive Program Process Checklist

Program Eligibility

General eligibility

Property must be protected by a Heritage Designation Bylaw
Property must be privately owned (government-owned buildings are not eligible)
Project must result in substantial rehabilitation or adaptive reuse
A Heritage Alteration Permit is required in conjunction with the Tax Incentive Program application
Proposals must retain internal structure and exterior facades of the heritage building to the highest level possible unless proven in a seismic assessment to be the only viable option for seismic upgrading or adaptive reuse and verified as being necessary by an independent peer review
Rooftop additions must be sensitively located and smaller in scale than the existing building, and are limited to:
- One-storey on top of heritage buildings that are two to three storeys, and must include step-backs of at least four metres from street elevations.
- Two storeys on top of heritage buildings that are four storeys or greater, and must include stepbacks that are at least three metres from street elevations.
Excavation below the original building foundations is not permitted unless verified as required as part of a the structural assessment
Construction must not start until Council has considered the heritage tax incentive program application

Residential application

Buildings must reuse or repurpose existing upper floors for residential use with commercial on the ground floor

Non-residential application

Supports rehabilitation or conversion of commercial, institutional or industrial buildings
May include reuse of vacant or underused space
The building must contain entirely commercial, industrial or institutional uses

Council may limit the number of approved projects.

Eligible and Ineligible Work

Eligible work includes:

Seismic upgrading (core requirement)

Residential-specific Eligible Work:

Seismic upgrade costs specific to the conversion of existing space to residential uses, such as:
- Professional design and engineering reports, drawings, cost estimates and specifications as required for the project
- Seismic upgrading of building components, including code upgrading, bracing of walls, floors and roof systems, masonry reinforcement, affixing of cornices or other exterior architectural features to the building structure

Non-residential Eligible Work:

Structural stabilization and code upgrades
Façade improvements and heritage restoration
Mechanical and electrical system upgrades
Construction costs related to the building envelope and interior rehabilitation

Not Eligible:

Cosmetic work (painting, minor repairs)
Tenant improvements
New additions

If combined with other grants, costs cannot be duplicated across programs.

Conservation and Permit Requirements

Tax Exemption Details

Apply

Submit your application online.

Heritage Tax Incentive Application

After You Apply

Once your application is submitted:

Staff will review your application
The Victoria Civic Heritage Trust reviews your application and provides recommendations to Council
Council reviews the application
If the exemption is longer than one year, public notice is required before Council considers approval
A Tax Exemption Bylaw is prepared and adopted (two-thirds Council vote required)

After approval:

Do not begin work until bylaw adoption
Complete work as approved
Project is inspected upon completion
Representatives from the Victoria Civic Heritage Trust will confirm the work has been carried out as proposed.
Certification of costs and compliance by the project engineer must be provided
The term of the tax exemption will start in the year following the year in which the final occupancy permit is issued for the project
Property taxes are exempted for the approved term

Conditions:

Residential units must remain residential (or live/work) during the exemption period
A covenant is registered on title
Final costs are verified
Exemption begins after occupancy permit is issued

The City and the Victoria Civic Heritage Trust may decline applications that do not meet program requirements.