Virginia allows an income tax credit for 40 percent of the value of donated land or conservation easements. For tax years 2002 through 2008, taxpayers may use up to $100,000 per year for the year of sale and the ten subsequent tax years. For tax years 2009 and 2010, taxpayers may use up to $50,000 per year for the year of the sale, and then 12 subsequent tax years for taxpayers affected by the credit reduction for those 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).
Land Preservation Tax Credit Conservation Value Summary for 2008
DCR compiled the 2008 Land Preservation Tax Credit Conservation Value Summary (PDF), which is an annual report on all donations for which such a tax credit was requested. The report was sent to the governor and legislature in December 2009.
Click here instead (PDF) 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.
DCR's annual report on 2009 donations will be released in December 2010.
Amendments to VLCF's Land Preservation Tax Credits - Conservation Value Review Criteria
After two public comment periods and input from an advisory group, DCR staff developed draft final amendments to the Land Preservation Tax Credits – Conservation Value Review Criteria for the VLCF Board’s consideration. Proposed changes to the criteria were presented to the board on March 27, 2009. The public had an opportunity to comment at that meeting before action was taken by the board. Click here (PDF) for the most current criteria that were subsequently approved by the board at that meeting.
For more information, please phone (804) 225-2048.- Land Preservation Tax Credit - Conservation Value Review Criteria by VLCF Board (PDF)
- DCR Procedural Guidelines (PDF)
- Tax forms (from the Dept. of Taxation's website):
- Department of Taxation Policy Library Page
- Tax Commissioner's Ruling on Credit Request Amounts (PDF)
- Virginia’s Land Preservation Tax Credit Brochure (PDF)
- Q&A Document