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Land Preservation Tax Credit
Administering Agency
The Virginia Department of Taxation administers the Land Preservation Tax Credit Program. If a land owner is seeking $1 million or more in tax credits, then the Virginia Department of Conservation and Recreation reviews their tax credit applications to ensure the conservation values of the property are protected. The DCR review is based on conservation value review criteria established by the Virginia Land Conservation Foundation.
Purpose
To protect the state’s unique natural and historical resources by rewarding and assisting habitat stewardship by private landowners.
Who Can Participate
Tax-payers who donated a conservation easement after January 1, 2000. This tax credit applies to any person, corporation, partnership, organization, trust or estate subject to state or local taxation.
How it Works
Virginia allows an income tax credit for 40 percent of the value of donated land or conservation easements. Taxpayers may use up to $100,000 per year for the year of sale and the ten subsequent tax years. Unused credits may be sold or transferred to other Virginia taxpayers, allowing individuals with little or no Virginia income tax burden to take advantage of this benefit. Individuals and corporations in the state of Virginia may buy or sell land conservation tax credits. Procedures and forms for notification of the transfer of the credit are set out by the tax commissioner and a fee of two percent of the value of the donated land is collected upon the transfer of these tax credits.
To be eligible for tax credits, the easement must qualify as a charitable deduction under the IRS Code and meet additional requirements under the Virginia Land Conservation Incentives Act. DCR is responsible for verifying the conservation value of Land Preservation Tax Credits for all donations of land or conservation easements for which the donor claims a state tax credit of $1 million or more. These applicants must meet the Conservation Value Review Criteria adopted by the Virginia Land Conservation Foundation Board.
How to Get More Information
Contact Suzan Bulbulkaya
(804) 371-5218
Visit the VA DCR webpage on the Land Preservation Tax Credit