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, allowing individuals with little or no Virginia income tax burden to take advantage of this benefit.
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 (VLCF). Donors claiming less than $1 million in tax credits should apply directly to the Virginia Department of Taxation, not through DCR.
DCR compiled the 2011 Land Preservation Tax Credit Summary, an annual report of all donations for which the tax credit was issued.
Click here for the 2009-10 Land Preservation Tax Credit Conservation Value Summary, which is a two-year report on all donations for which such a tax credit was issued.
Click here for the 2007 biennial report summary, entitled VLCF Board of Trustees and DCR 2007 and 2008 Biennial Report of the Virginia Land Conservation Foundation. It was submitted to the governor and Virginia General Assembly in January 2009.
Click here for VLCF Land Preservation Tax Credits Conservation Value Review Criteria used by DCR for Land Preservation Tax Credit applications of $1 million or more.
Call 804-225-2048 or 804-371-5218 for more information.
For information about DCR’s review of Land Preservation Tax Credit applications, call 804-225-2048 or 804-371-5218.