Tax Exemptions

The City of Alexandria is committed to maintaining competitive tax rates and comparable business operating costs compared with localities in the region. Examples of tax exemptions that may be available to specific types of businesses and organizations include:

Business, Professional and Occupational License Tax Exemptions

The City of Alexandria allows certain exclusions and adjustments, including:

  • Government computer hardware/software sellers: The original cost (not resale price) of computer hardware or software sold under contract to a state or federal government entity in the U.S. within two years of purchase may be deducted from gross receipts.
  • Nonprofits: Except for unrelated business income, the income of charitable nonprofit organizations may be excluded from gross receipts.

Installation of Solar Equipment

Property owners can qualify for a tax exemption for installing solar equipment that is designed and used primarily to collect and use solar energy for water heating, space heating or cooling, or other applications that would otherwise require a conventional source of energy. Qualifying solar energy systems include solar heating and hot water systems, passive solar energy systems, south-facing windows used as solar collectors, trombe walls (a sun-facing wall designed to collect solar energy and act as a thermal mass for heating the structure), greenhouses integrated into the heating system of the structure, thermal storage systems, movable insulation, and shading devices designed primarily for shading windows to assist in summer cooling.
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