{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-512.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-512.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-512.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-512.html"}],"law_id":76719,"edition_id":1,"section_id":76719,"structure_id":16129,"section_number":"58.1-512","catch_line":"Land preservation tax credits for individuals and corporations","history":"1999, cc. 968, 983; 2005, c. 940; 2006, Sp. Sess. I, cc. 4, 5; 2009, cc. 12, 510; 2010, cc. 246, 265, 321, 384; 2011, cc. 212, 296, 377, 672; 2013, c. 798; 2015, cc. 235, 467, 680; 2017, c. 424; 2019, cc. 183, 649; 2023, c. 173; 2024, cc. 10, 146.","full_text":"A\n\n1. For taxable years beginning on or after January 1, 2000, there shall be allowed as a credit against the tax liability imposed by \u00a7\u00a7 58.1-320 and 58.1-400, an amount equal to 50 percent of the fair market value of any land or interest in land located in Virginia that is conveyed for the purpose of agricultural and forestal use, open space, natural resource, and\/or biodiversity conservation, or land, agricultural, watershed and\/or historic preservation, as an unconditional donation by the landowner\/taxpayer to a public or private conservation agency eligible to hold such land and interests therein for conservation or preservation purposes. For such conveyances made on or after January 1, 2007, the tax credit shall be 40 percent of the fair market value of the land or interest in land so conveyed.2\n\na. If the Commonwealth or an instrumentality thereof operates a facility on a conveyance, including charging fees for the use of such facility, such operation shall not disqualify the conveyance from eligibility for the tax credit, so long as any fees are used for conservation or preservation purposes.\n\t\t\t\tb. If the Commonwealth or an instrumentality thereof enters into an agreement with a third party to lease or manage a facility on a conveyance, the fact that such third party is operated primarily as a business with intent for profit shall not disqualify the conveyance from eligibility for the tax credit, so long as such agreement is for conservation or preservation purposes.B\n\nThe fair market value of qualified donations made under this section shall be determined in accordance with § 58.1-512.1 and substantiated by a “qualified appraisal” prepared by a “qualified appraiser,” as those terms are defined under applicable federal law and regulations governing charitable contributions. The value of the donated interest in land that qualifies for credit under this section, as determined according to appropriate federal law and regulations, shall be subject to the limits established by United States Internal Revenue Code § 170(e). In order to qualify for a tax credit under this section, the qualified appraisal shall be signed by the qualified appraiser, who must be licensed in the Commonwealth of Virginia as provided in § 54.1-2011, and a copy of the appraisal shall be submitted to the Department. In the event that any appraiser falsely or fraudulently overstates the value of the contributed property in an appraisal that the appraiser has signed, the Department may disallow further appraisals signed by the appraiser and shall refer the appraiser to the Real Estate Appraiser Board for appropriate disciplinary action pursuant to § 54.1-2013, which may include, but need not be limited to, revocation of the appraiser’s license. Any appraisal that, upon audit by the Department, is determined to be false or fraudulent, may be disregarded by the Department in determining the fair market value of the property and the amount of tax credit to be allowed under this section.C\n\n1. The amount of the credit that may be claimed by each taxpayer, including credit claimed by applying unused credits as provided under subsection C of \u00a7 58.1-513, shall not exceed $50,000 for 2000 taxable years; $75,000 for 2001 taxable years; $100,000 for each of 2002 through 2008 taxable years; $50,000 for each of 2009, 2010, and 2011 taxable years; $100,000 for each of 2012, 2013, and 2014 taxable years; $20,000 for each of 2015, 2016, and 2017 taxable years; and $50,000 for 2018 taxable years and for each taxable year thereafter. However, for any fee simple donation of land conveyed to the Commonwealth on or after January 1, 2015, the amount of the credit claimed shall not exceed $100,000 for each taxable year, provided that no part of the charitable contributions deduction under \u00a7 170 of the Internal Revenue Code related to such fee simple donation is allowable by reason of a sale or exchange of property. In addition, for each taxpayer, in any one taxable year the credit used may not exceed the amount of individual, fiduciary or corporate income tax otherwise due. Any portion of the credit that is unused in any one taxable year may be carried over for a maximum of 10 consecutive taxable years following the taxable year in which the credit originated until fully expended. A credit shall not be reduced by the amount of unused credit that could have been claimed in a prior year by the taxpayer but was unclaimed. For taxpayers affected by the credit reduction for taxable years 2009, 2010, 2011, and 2015 and thereafter, any portion of the credit that is unused in any one taxable year may be carried over for a maximum of 13 consecutive taxable years following the taxable year in which the credit originated until fully expended.2\n\nQualified donations shall include the conveyance of a fee interest in real property or the conveyance in perpetuity of a less-than-fee interest in real property, such as a conservation restriction, preservation restriction, agricultural preservation restriction, or watershed preservation restriction, provided that such less-than-fee interest qualifies as a charitable deduction under § 170(h) of the United States Internal Revenue Code of 1986, as amended.\n\t\t\t\tThe Department of Conservation and Recreation shall compile an annual report on qualified donations of less-than-fee interests accepted by any public or private conservation agency in the respective calendar year and shall submit the report by December 1 of each year to the Chairmen of the House Committee on Appropriations, House Committee on Finance, and the Senate Committee on Finance and Appropriations. In preparing such report, the Department of Conservation and Recreation shall consult and coordinate with the Department of Taxation and the Departments of Forestry and Agriculture and Consumer Services to provide an estimate of the number of acres of land currently being used for “production agriculture and silviculture” as defined in § 3.2-300 that have been protected by qualified donations of less-than-fee interests. This report shall include information, when available, on land qualifying for credits being used for “production agriculture and silviculture” that have onsite operational best management practices, which are designed to reduce the amount of nutrients and sediment entering public waters. In addition, the report shall include information, when available, on riparian buffers, both vegetated\/forested buffers and no-plow buffers, required by deed restriction on land qualifying for credits in order to protect water quality. This information shall be reported in summary fashion as appropriate to preserve confidentiality of information. Qualified donations shall not include the conveyance of a fee interest, or a less-than-fee interest, in real property by a charitable organization that (i) meets the definition of “holder” in § 10.1-1009 and (ii) holds one or more conservation easements acquired pursuant to the authority conferred on a “holder” by § 10.1-1010.3\n\nAny fee interest, or a less-than-fee interest, in real property that has been dedicated as open space within, or as part of, a residential subdivision or any other type of residential or commercial development; dedicated as open space in, or as part of, any real estate development plan; or dedicated for the purpose of fulfilling density requirements to obtain approvals for zoning, subdivision, site plan, or building permits shall not be a qualified donation under this article.4\n\nQualified donations shall be eligible for the tax credit herein described if such donations are made to the Commonwealth of Virginia, an instrumentality thereof, or a charitable organization described in § 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, if such charitable organization (i) meets the requirements of § 509(a)(2) or (ii) meets the requirements of § 509(a)(3) and is controlled by an organization described in § 509(a)(2).5\n\nThe preservation, agricultural preservation, historic preservation or similar use and purpose of such property shall be assured in perpetuity. In the case of conveyances of a fee interest to a charitable organization that is a “holder” as defined in § 10.1-1009, the credit shall not be allowed until the charitable organization agrees that subsequent conveyances of the fee interest in the property will be (i) subject to a previous conveyance in perpetuity of a conservation easement, as that term is defined in § 10.1-1009, or subject to the conveyance in perpetuity of an open-space easement, as that term is defined in § 10.1-1700, or (ii) conveyed to the Commonwealth of Virginia or to a federal conservation agency. No credit shall be allowed with respect to any subsequent conveyances by the charitable organization.D\n\nThe issuance of tax credits under this article for donations made on and after January 1, 2007, shall be in accordance with procedures and deadlines established by the Department and shall be administered under the following conditions:1\n\nThe taxpayer shall apply for a credit after completing the donation by submitting a form or forms prescribed by the Department in consultation with the Department of Conservation and Recreation. If the application requests a credit of $1 million or more or if the donation meets the conditions of subdivision 3 c, then a copy of the application shall also be filed with the Department of Conservation and Recreation by the taxpayer. The application shall include, but not be limited to:\n\t\t\t\ta. A description of the conservation purpose or purposes being served by the donation;\n\t\t\t\tb. The fair market value of land being donated in the absence of any easement or other restriction;\n\t\t\t\tc. The public benefit derived from the donation;\n\t\t\t\td. The extent to which water quality best management practices will be implemented on the property; and\n\t\t\t\te. Whether the property is fully or partially forested and a forest management plan is included in the terms of the donation.2\n\nApplications for otherwise qualified donations of a less-than-fee interest shall be accompanied by an affidavit describing how the donated interest in land meets the requirements of § 170(h) of the United States Internal Revenue Code of 1986, as amended, and the regulations adopted thereunder. The application with accompanying affidavit shall be submitted to the Department of Taxation, with a copy also provided to the Department of Conservation and Recreation.3\n\na. No credit in the amount of $1 million or more shall be issued with respect to a donation unless the conservation value of the donation has been verified by the Director of the Department of Conservation and Recreation, based on the criteria adopted by the Virginia Land Conservation Foundation for this purpose. Such criteria and subsequent amendments shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.), but the Virginia Land Conservation Foundation shall provide for adequate public participation, including adequate notice and opportunity to provide comments on the proposed criteria. The Director shall act on applications within 90 days of his receipt of a complete application and shall notify the taxpayer and the Department of Taxation of his action.\n\t\t\t\tb. For purposes of determining whether a credit requires verification of the conservation value, the credits allowed under this article with respect to donations of any other portion of a recorded parcel of land within the preceding 11 years shall be aggregated with the credit claimed for the current donation. This subdivision shall not apply if (i) all owners of the parcel who have been allowed credit for a qualified donation are not affiliated with the person or entity seeking credit for the current donation of a different portion of the parcel and (ii) in the case of an individual seeking credit, the individual has not previously made a qualified donation for any portion of the parcel and is not an immediate family member of any such owners.\n\t\t\t\tc. If (i) the real property that is the subject of the donation was partitioned from or part of another parcel of land and any other portion of such parcel, or any land partitioned from such parcel of land, has been allowed a tax credit under this article (or an application for tax credit is pending) within three years of such donation and (ii) the tax credit that would otherwise be allowed to the donor for such donation is at least $250,000, then no credit under this article shall be issued with respect to such donation described in clause (i) unless the conservation value of the donation has been verified by the Director of the Department of Conservation and Recreation. The Director shall act on applications within 90 days of his receipt of a complete application and shall notify the taxpayer and the Department of Taxation of his action. Nothing in this subdivision shall be construed or interpreted (a) as allowing additional tax credit for any land or interest in land previously conveyed for which tax credit has already been allowed under this article or (b) affecting the validity of any tax credit allowed under this article for a prior conveyance of any land or interest in land.4\n\na. Tax credits shall be issued on a calendar year basis, and in no case shall the Department issue more than the maximum allowed for the calendar year. The maximum amount of credits that may be issued in a calendar year shall be $100 million plus any credits previously issued under this article but subsequently disallowed or invalidated by the Department. Credits previously issued but subsequently disallowed or invalidated shall be reissued in a subsequent calendar year. All credits shall be issued in the order that each complete application is filed. For filings by mail or a recognized commercial delivery service, the postmark or confirmation of shipment shall determine the date of filing. If within 30 days after an application for credits has been filed the Tax Commissioner provides written notice to the donor that he has determined that the preparation of a second qualified appraisal is warranted, the application shall not be deemed complete until the fair market value of the donation has been finally determined by the Tax Commissioner. The Tax Commissioner shall make a final determination within 180 days of notifying the donor, unless the donor has filed an appeal. The donor shall have the right to appeal any decision of the Department in accordance with the provisions of Chapter 18 (§ 58.1-1800 et seq.). If more than one complete application is filed at the same time, the credits with respect to those applications shall be issued in the order that the conveyances were recorded in the appropriate circuit court of the Commonwealth. In the event that a credit requires verification of the conservation value by the Department of Conservation and Recreation and such verification has not been received at the time the maximum $100 million allowed is reached for the calendar year of the donation, such credit shall not be issued for that calendar year but shall be issued in the calendar year that the conservation value of the credit is verified by the Department of Conservation and Recreation.\n\t\t\t\tNo credit shall be allowed for any land or interest in land conveyed unless (i) for a conveyance made before January 1, 2020, a complete application for tax credit with regard to the conveyance has been filed with the Department by December 31 of the third year following the calendar year of the conveyance or (ii) for a conveyance made on or after January 1, 2020, a complete application for tax credit with regard to the conveyance has been filed with the Department by December 31 of the second year following the calendar year of the conveyance. For filings by mail or a recognized commercial delivery service, the postmark or confirmation of shipment shall determine the date of filing. Solely for purposes of this condition, any application for which the Tax Commissioner has given written notice to the donor that the preparation of a second qualified appraisal is warranted shall be deemed timely filed, provided that the application was otherwise complete as of such filing deadline. For conveyances made on and after January 1, 2017, the deadlines provided by clauses (i) and (ii) of this subdivision shall be extended for any number of days exceeding 90 during which an application for tax credit is being reviewed for verification of conservation value by the Department of Conservation and Recreation, if the application was otherwise complete at the time of the original filing deadline.\n\t\t\t\tb. Beginning with calendar year 2008, the $100 million amount contained in subdivision 4 a shall be increased by an amount equal to $100 million multiplied by the percentage by which the consumer price index for all-urban consumers published by the United States Department of Labor (CPI-U) for the 12-month period ending August 31 of the preceding year exceeds the CPI-U for the 12-month period ending August 31, 2006.\n\t\t\t\tc. Beginning with calendar year 2015, the maximum amount of credits that may be issued in a calendar year shall not exceed $75 million. In no case shall the Department issue any tax credit for a donation from any allocation or pool of tax credits attributable to a calendar year prior to the year in which the complete tax credit application for the donation was filed.\n\t\t\t\tBeginning with the submission due on or before December 20, 2015, and in each year thereafter, the Governor shall include in “The Budget Bill” submitted pursuant to subsection A of § 2.2-1509 or in his amendments to the general appropriation act in effect submitted pursuant to subsection E of § 2.2-1509 a recommended appropriation from the general fund equal to the difference between the amount calculated pursuant to subdivision b and $75 million, but not more than $20 million, to be allocated as follows: 80 percent to the Virginia Land Conservation Fund to be used in accordance with § 10.1-1020, with no less than 50 percent of such appropriation to be used for fee simple acquisitions with public access or acquisitions of easements with public access; 10 percent to the Virginia Battlefield Preservation Fund to be used in accordance with § 10.1-2202.4; and 10 percent to the Virginia Farmland and Forestland Preservation Fund to be used in accordance with § 10.1-1119.3.5\n\na. Any taxpayer that has been issued a tax credit by the Department shall be allowed to use such credit for his or its taxable year that begins in the calendar year for which such credit was issued and for succeeding taxable years in accordance with the 10 consecutive taxable year carryforward provisions of this article, except for any taxpayer affected by the credit limitation for taxable years 2009, 2010, 2011, and 2015 and taxable years thereafter. Such a taxpayer shall be allowed to use such credit for his or its taxable year that begins in the calendar year for which such credit was issued and for succeeding taxable years in accordance with the 13 consecutive taxable year carryforward provisions of this article.\n\t\t\t\tb. Any taxpayer to whom a credit has been transferred may use such credit for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but in no event may such transferred credit be used more than 11 years after it was originally issued by the Department or in any taxable year of such taxpayer that ended prior to the date of transfer, except for any taxpayer affected by the credit limitation for taxable years 2009, 2010, 2011, and 2015 and taxable years thereafter. Such a taxpayer may use such credit for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but in no event may such transferred credit be used more than 14 years after it was originally issued by the Department or in any taxable year of such taxpayer that ended prior to the date of transfer.6\n\nNeither the verification of conservation value by the Department of Conservation and Recreation nor the issuance of a credit by the Department of Taxation shall in any way be construed or interpreted as prohibiting the Department of Taxation or the Tax Commissioner from auditing any credit claimed pursuant to the provisions of this article or from assessing tax relating to the claiming of any credit under this article.E\n\nIn any review or appeal before the Tax Commissioner or in any court in the Commonwealth the burden of proof shall be on the taxpayer to show that the fair market value and conservation value at the time of the qualified donation is consistent with this section and that all requirements of this article have been satisfied.","order_by":null,"text":{"0":{"id":275388,"text":"1. For taxable years beginning on or after January 1, 2000, there shall be allowed as a credit against the tax liability imposed by \u00a7\u00a7 58.1-320 and 58.1-400, an amount equal to 50 percent of the fair market value of any land or interest in land located in Virginia that is conveyed for the purpose of agricultural and forestal use, open space, natural resource, and\/or biodiversity conservation, or land, agricultural, watershed and\/or historic preservation, as an unconditional donation by the landowner\/taxpayer to a public or private conservation agency eligible to hold such land and interests therein for conservation or preservation purposes. For such conveyances made on or after January 1, 2007, the tax credit shall be 40 percent of the fair market value of the land or interest in land so conveyed.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A2"},"1":{"id":275389,"text":"a. If the Commonwealth or an instrumentality thereof operates a facility on a conveyance, including charging fees for the use of such facility, such operation shall not disqualify the conveyance from eligibility for the tax credit, so long as any fees are used for conservation or preservation purposes.\n\t\t\t\tb. If the Commonwealth or an instrumentality thereof enters into an agreement with a third party to lease or manage a facility on a conveyance, the fact that such third party is operated primarily as a business with intent for profit shall not disqualify the conveyance from eligibility for the tax credit, so long as such agreement is for conservation or preservation purposes.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A","next_prefix":"B"},"2":{"id":275390,"text":"The fair market value of qualified donations made under this section shall be determined in accordance with § 58.1-512.1 and substantiated by a “qualified appraisal” prepared by a “qualified appraiser,” as those terms are defined under applicable federal law and regulations governing charitable contributions. The value of the donated interest in land that qualifies for credit under this section, as determined according to appropriate federal law and regulations, shall be subject to the limits established by United States Internal Revenue Code § 170(e). In order to qualify for a tax credit under this section, the qualified appraisal shall be signed by the qualified appraiser, who must be licensed in the Commonwealth of Virginia as provided in § 54.1-2011, and a copy of the appraisal shall be submitted to the Department. In the event that any appraiser falsely or fraudulently overstates the value of the contributed property in an appraisal that the appraiser has signed, the Department may disallow further appraisals signed by the appraiser and shall refer the appraiser to the Real Estate Appraiser Board for appropriate disciplinary action pursuant to § 54.1-2013, which may include, but need not be limited to, revocation of the appraiser’s license. Any appraisal that, upon audit by the Department, is determined to be false or fraudulent, may be disregarded by the Department in determining the fair market value of the property and the amount of tax credit to be allowed under this section.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"3":{"id":275391,"text":"1. The amount of the credit that may be claimed by each taxpayer, including credit claimed by applying unused credits as provided under subsection C of \u00a7 58.1-513, shall not exceed $50,000 for 2000 taxable years; $75,000 for 2001 taxable years; $100,000 for each of 2002 through 2008 taxable years; $50,000 for each of 2009, 2010, and 2011 taxable years; $100,000 for each of 2012, 2013, and 2014 taxable years; $20,000 for each of 2015, 2016, and 2017 taxable years; and $50,000 for 2018 taxable years and for each taxable year thereafter. However, for any fee simple donation of land conveyed to the Commonwealth on or after January 1, 2015, the amount of the credit claimed shall not exceed $100,000 for each taxable year, provided that no part of the charitable contributions deduction under \u00a7 170 of the Internal Revenue Code related to such fee simple donation is allowable by reason of a sale or exchange of property. In addition, for each taxpayer, in any one taxable year the credit used may not exceed the amount of individual, fiduciary or corporate income tax otherwise due. Any portion of the credit that is unused in any one taxable year may be carried over for a maximum of 10 consecutive taxable years following the taxable year in which the credit originated until fully expended. A credit shall not be reduced by the amount of unused credit that could have been claimed in a prior year by the taxpayer but was unclaimed. For taxpayers affected by the credit reduction for taxable years 2009, 2010, 2011, and 2015 and thereafter, any portion of the credit that is unused in any one taxable year may be carried over for a maximum of 13 consecutive taxable years following the taxable year in which the credit originated until fully expended.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C2"},"4":{"id":275392,"text":"Qualified donations shall include the conveyance of a fee interest in real property or the conveyance in perpetuity of a less-than-fee interest in real property, such as a conservation restriction, preservation restriction, agricultural preservation restriction, or watershed preservation restriction, provided that such less-than-fee interest qualifies as a charitable deduction under § 170(h) of the United States Internal Revenue Code of 1986, as amended.\n\t\t\t\tThe Department of Conservation and Recreation shall compile an annual report on qualified donations of less-than-fee interests accepted by any public or private conservation agency in the respective calendar year and shall submit the report by December 1 of each year to the Chairmen of the House Committee on Appropriations, House Committee on Finance, and the Senate Committee on Finance and Appropriations. In preparing such report, the Department of Conservation and Recreation shall consult and coordinate with the Department of Taxation and the Departments of Forestry and Agriculture and Consumer Services to provide an estimate of the number of acres of land currently being used for “production agriculture and silviculture” as defined in § 3.2-300 that have been protected by qualified donations of less-than-fee interests. This report shall include information, when available, on land qualifying for credits being used for “production agriculture and silviculture” that have onsite operational best management practices, which are designed to reduce the amount of nutrients and sediment entering public waters. In addition, the report shall include information, when available, on riparian buffers, both vegetated\/forested buffers and no-plow buffers, required by deed restriction on land qualifying for credits in order to protect water quality. This information shall be reported in summary fashion as appropriate to preserve confidentiality of information. Qualified donations shall not include the conveyance of a fee interest, or a less-than-fee interest, in real property by a charitable organization that (i) meets the definition of “holder” in § 10.1-1009 and (ii) holds one or more conservation easements acquired pursuant to the authority conferred on a “holder” by § 10.1-1010.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"C3"},"5":{"id":275393,"text":"Any fee interest, or a less-than-fee interest, in real property that has been dedicated as open space within, or as part of, a residential subdivision or any other type of residential or commercial development; dedicated as open space in, or as part of, any real estate development plan; or dedicated for the purpose of fulfilling density requirements to obtain approvals for zoning, subdivision, site plan, or building permits shall not be a qualified donation under this article.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"6":{"id":275394,"text":"Qualified donations shall be eligible for the tax credit herein described if such donations are made to the Commonwealth of Virginia, an instrumentality thereof, or a charitable organization described in § 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, if such charitable organization (i) meets the requirements of § 509(a)(2) or (ii) meets the requirements of § 509(a)(3) and is controlled by an organization described in § 509(a)(2).","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"7":{"id":275395,"text":"The preservation, agricultural preservation, historic preservation or similar use and purpose of such property shall be assured in perpetuity. In the case of conveyances of a fee interest to a charitable organization that is a “holder” as defined in § 10.1-1009, the credit shall not be allowed until the charitable organization agrees that subsequent conveyances of the fee interest in the property will be (i) subject to a previous conveyance in perpetuity of a conservation easement, as that term is defined in § 10.1-1009, or subject to the conveyance in perpetuity of an open-space easement, as that term is defined in § 10.1-1700, or (ii) conveyed to the Commonwealth of Virginia or to a federal conservation agency. No credit shall be allowed with respect to any subsequent conveyances by the charitable organization.","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"D"},"8":{"id":275396,"text":"The issuance of tax credits under this article for donations made on and after January 1, 2007, shall be in accordance with procedures and deadlines established by the Department and shall be administered under the following conditions:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C5","next_prefix":"D1"},"9":{"id":275397,"text":"The taxpayer shall apply for a credit after completing the donation by submitting a form or forms prescribed by the Department in consultation with the Department of Conservation and Recreation. If the application requests a credit of $1 million or more or if the donation meets the conditions of subdivision 3 c, then a copy of the application shall also be filed with the Department of Conservation and Recreation by the taxpayer. The application shall include, but not be limited to:\n\t\t\t\ta. A description of the conservation purpose or purposes being served by the donation;\n\t\t\t\tb. The fair market value of land being donated in the absence of any easement or other restriction;\n\t\t\t\tc. The public benefit derived from the donation;\n\t\t\t\td. The extent to which water quality best management practices will be implemented on the property; and\n\t\t\t\te. Whether the property is fully or partially forested and a forest management plan is included in the terms of the donation.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"10":{"id":275398,"text":"Applications for otherwise qualified donations of a less-than-fee interest shall be accompanied by an affidavit describing how the donated interest in land meets the requirements of § 170(h) of the United States Internal Revenue Code of 1986, as amended, and the regulations adopted thereunder. The application with accompanying affidavit shall be submitted to the Department of Taxation, with a copy also provided to the Department of Conservation and Recreation.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"11":{"id":275399,"text":"a. No credit in the amount of $1 million or more shall be issued with respect to a donation unless the conservation value of the donation has been verified by the Director of the Department of Conservation and Recreation, based on the criteria adopted by the Virginia Land Conservation Foundation for this purpose. Such criteria and subsequent amendments shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.), but the Virginia Land Conservation Foundation shall provide for adequate public participation, including adequate notice and opportunity to provide comments on the proposed criteria. The Director shall act on applications within 90 days of his receipt of a complete application and shall notify the taxpayer and the Department of Taxation of his action.\n\t\t\t\tb. For purposes of determining whether a credit requires verification of the conservation value, the credits allowed under this article with respect to donations of any other portion of a recorded parcel of land within the preceding 11 years shall be aggregated with the credit claimed for the current donation. This subdivision shall not apply if (i) all owners of the parcel who have been allowed credit for a qualified donation are not affiliated with the person or entity seeking credit for the current donation of a different portion of the parcel and (ii) in the case of an individual seeking credit, the individual has not previously made a qualified donation for any portion of the parcel and is not an immediate family member of any such owners.\n\t\t\t\tc. If (i) the real property that is the subject of the donation was partitioned from or part of another parcel of land and any other portion of such parcel, or any land partitioned from such parcel of land, has been allowed a tax credit under this article (or an application for tax credit is pending) within three years of such donation and (ii) the tax credit that would otherwise be allowed to the donor for such donation is at least $250,000, then no credit under this article shall be issued with respect to such donation described in clause (i) unless the conservation value of the donation has been verified by the Director of the Department of Conservation and Recreation. The Director shall act on applications within 90 days of his receipt of a complete application and shall notify the taxpayer and the Department of Taxation of his action. Nothing in this subdivision shall be construed or interpreted (a) as allowing additional tax credit for any land or interest in land previously conveyed for which tax credit has already been allowed under this article or (b) affecting the validity of any tax credit allowed under this article for a prior conveyance of any land or interest in land.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"12":{"id":275400,"text":"a. Tax credits shall be issued on a calendar year basis, and in no case shall the Department issue more than the maximum allowed for the calendar year. The maximum amount of credits that may be issued in a calendar year shall be $100 million plus any credits previously issued under this article but subsequently disallowed or invalidated by the Department. Credits previously issued but subsequently disallowed or invalidated shall be reissued in a subsequent calendar year. All credits shall be issued in the order that each complete application is filed. For filings by mail or a recognized commercial delivery service, the postmark or confirmation of shipment shall determine the date of filing. If within 30 days after an application for credits has been filed the Tax Commissioner provides written notice to the donor that he has determined that the preparation of a second qualified appraisal is warranted, the application shall not be deemed complete until the fair market value of the donation has been finally determined by the Tax Commissioner. The Tax Commissioner shall make a final determination within 180 days of notifying the donor, unless the donor has filed an appeal. The donor shall have the right to appeal any decision of the Department in accordance with the provisions of Chapter 18 (§ 58.1-1800 et seq.). If more than one complete application is filed at the same time, the credits with respect to those applications shall be issued in the order that the conveyances were recorded in the appropriate circuit court of the Commonwealth. In the event that a credit requires verification of the conservation value by the Department of Conservation and Recreation and such verification has not been received at the time the maximum $100 million allowed is reached for the calendar year of the donation, such credit shall not be issued for that calendar year but shall be issued in the calendar year that the conservation value of the credit is verified by the Department of Conservation and Recreation.\n\t\t\t\tNo credit shall be allowed for any land or interest in land conveyed unless (i) for a conveyance made before January 1, 2020, a complete application for tax credit with regard to the conveyance has been filed with the Department by December 31 of the third year following the calendar year of the conveyance or (ii) for a conveyance made on or after January 1, 2020, a complete application for tax credit with regard to the conveyance has been filed with the Department by December 31 of the second year following the calendar year of the conveyance. For filings by mail or a recognized commercial delivery service, the postmark or confirmation of shipment shall determine the date of filing. Solely for purposes of this condition, any application for which the Tax Commissioner has given written notice to the donor that the preparation of a second qualified appraisal is warranted shall be deemed timely filed, provided that the application was otherwise complete as of such filing deadline. For conveyances made on and after January 1, 2017, the deadlines provided by clauses (i) and (ii) of this subdivision shall be extended for any number of days exceeding 90 during which an application for tax credit is being reviewed for verification of conservation value by the Department of Conservation and Recreation, if the application was otherwise complete at the time of the original filing deadline.\n\t\t\t\tb. Beginning with calendar year 2008, the $100 million amount contained in subdivision 4 a shall be increased by an amount equal to $100 million multiplied by the percentage by which the consumer price index for all-urban consumers published by the United States Department of Labor (CPI-U) for the 12-month period ending August 31 of the preceding year exceeds the CPI-U for the 12-month period ending August 31, 2006.\n\t\t\t\tc. Beginning with calendar year 2015, the maximum amount of credits that may be issued in a calendar year shall not exceed $75 million. In no case shall the Department issue any tax credit for a donation from any allocation or pool of tax credits attributable to a calendar year prior to the year in which the complete tax credit application for the donation was filed.\n\t\t\t\tBeginning with the submission due on or before December 20, 2015, and in each year thereafter, the Governor shall include in “The Budget Bill” submitted pursuant to subsection A of § 2.2-1509 or in his amendments to the general appropriation act in effect submitted pursuant to subsection E of § 2.2-1509 a recommended appropriation from the general fund equal to the difference between the amount calculated pursuant to subdivision b and $75 million, but not more than $20 million, to be allocated as follows: 80 percent to the Virginia Land Conservation Fund to be used in accordance with § 10.1-1020, with no less than 50 percent of such appropriation to be used for fee simple acquisitions with public access or acquisitions of easements with public access; 10 percent to the Virginia Battlefield Preservation Fund to be used in accordance with § 10.1-2202.4; and 10 percent to the Virginia Farmland and Forestland Preservation Fund to be used in accordance with § 10.1-1119.3.","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"13":{"id":275401,"text":"a. Any taxpayer that has been issued a tax credit by the Department shall be allowed to use such credit for his or its taxable year that begins in the calendar year for which such credit was issued and for succeeding taxable years in accordance with the 10 consecutive taxable year carryforward provisions of this article, except for any taxpayer affected by the credit limitation for taxable years 2009, 2010, 2011, and 2015 and taxable years thereafter. Such a taxpayer shall be allowed to use such credit for his or its taxable year that begins in the calendar year for which such credit was issued and for succeeding taxable years in accordance with the 13 consecutive taxable year carryforward provisions of this article.\n\t\t\t\tb. Any taxpayer to whom a credit has been transferred may use such credit for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but in no event may such transferred credit be used more than 11 years after it was originally issued by the Department or in any taxable year of such taxpayer that ended prior to the date of transfer, except for any taxpayer affected by the credit limitation for taxable years 2009, 2010, 2011, and 2015 and taxable years thereafter. Such a taxpayer may use such credit for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but in no event may such transferred credit be used more than 14 years after it was originally issued by the Department or in any taxable year of such taxpayer that ended prior to the date of transfer.","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"14":{"id":275402,"text":"Neither the verification of conservation value by the Department of Conservation and Recreation nor the issuance of a credit by the Department of Taxation shall in any way be construed or interpreted as prohibiting the Department of Taxation or the Tax Commissioner from auditing any credit claimed pursuant to the provisions of this article or from assessing tax relating to the claiming of any credit under this article.","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"E"},"15":{"id":275403,"text":"In any review or appeal before the Tax Commissioner or in any court in the Commonwealth the burden of proof shall be on the taxpayer to show that the fair market value and conservation value at the time of the qualified donation is consistent with this section and that all requirements of this article have been satisfied.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D6"}},"ancestry":[{"id":16129,"edition_id":1,"name":"Virginia Land Conservation Incentives Act of 1999","identifier":"20.1","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 04:07:01","date_modified":"2026-06-26 04:07:01","permalink":{"id":254051,"object_type":"structure","relational_id":16129,"identifier":"20.1","token":"58.1\/I\/3\/20.1","url":"\/58.1\/I\/3\/20.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":81976,"structure_id":16129,"section_number":"58.1-510","catch_line":"Purpose","url":"\/58.1-510\/","token":"58.1\/I\/3\/20.1\/58.1-510","metadata":false},{"id":70641,"structure_id":16129,"section_number":"58.1-511","catch_line":"Definitions","url":"\/58.1-511\/","token":"58.1\/I\/3\/20.1\/58.1-511","metadata":false},{"id":76719,"structure_id":16129,"section_number":"58.1-512","catch_line":"Land preservation tax credits for individuals and corporations","url":"\/58.1-512\/","token":"58.1\/I\/3\/20.1\/58.1-512","metadata":false},{"id":64755,"structure_id":16129,"section_number":"58.1-512.1","catch_line":"Determination of fair market value of donation","url":"\/58.1-512.1\/","token":"58.1\/I\/3\/20.1\/58.1-512.1","metadata":false},{"id":63964,"structure_id":16129,"section_number":"58.1-513","catch_line":"Limitations; transfer of credit; gain or loss from tax credit","url":"\/58.1-513\/","token":"58.1\/I\/3\/20.1\/58.1-513","metadata":false}],"previous_section":{"id":70641,"structure_id":16129,"section_number":"58.1-511","catch_line":"Definitions","url":"\/58.1-511\/","token":"58.1\/I\/3\/20.1\/58.1-511","metadata":false},"next_section":{"id":64755,"structure_id":16129,"section_number":"58.1-512.1","catch_line":"Determination of fair market value of donation","url":"\/58.1-512.1\/","token":"58.1\/I\/3\/20.1\/58.1-512.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-512\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapters 968<\/a> and 983<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 10 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2005, chapter 940<\/a>; in 2009, chapters 12<\/a> and 510<\/a>; in 2010, chapters 246<\/a>, 265<\/a>, 321<\/a>, and 384<\/a>; in 2011, chapters 212<\/a>, 296<\/a>, 377<\/a>, and 672<\/a>; in 2013, chapter 798<\/a>; in 2015, chapters 235<\/a>, 467<\/a>, and 680<\/a>; in 2017, chapter 424<\/a>; in 2019, chapters 183<\/a> and 649<\/a>; in 2023, chapter 173<\/a>; in 2024, chapters 10<\/a> and 146<\/a>.<\/p>","references":[{"id":80925,"section_number":"2.2-1509.4","catch_line":"Budget bill to include an appropriation for land preservation","order_by":null,"url":"\/2.2-1509.4\/"},{"id":57817,"section_number":"58.1-3","catch_line":"Secrecy of information; penalties","order_by":null,"url":"\/58.1-3\/"}],"refers_to":[{"id":64435,"section_number":"10.1-1009","catch_line":"Definitions","order_by":null,"url":"\/10.1-1009\/"},{"id":86514,"section_number":"10.1-1020","catch_line":"Virginia Land Conservation Fund; purposes of Foundation","order_by":null,"url":"\/10.1-1020\/"},{"id":59427,"section_number":"10.1-1700","catch_line":"Definitions","order_by":null,"url":"\/10.1-1700\/"},{"id":78102,"section_number":"10.1-2202.4","catch_line":"Virginia Battlefield Preservation Fund established; eligibility; uses","order_by":null,"url":"\/10.1-2202.4\/"},{"id":59447,"section_number":"2.2-1509","catch_line":"Budget Bill","order_by":null,"url":"\/2.2-1509\/"},{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":62811,"section_number":"3.2-300","catch_line":"Definitions","order_by":null,"url":"\/3.2-300\/"},{"id":65254,"section_number":"54.1-2011","catch_line":"Necessity for license","order_by":null,"url":"\/54.1-2011\/"},{"id":56882,"section_number":"54.1-2013","catch_line":"General powers of Real Estate Appraiser Board; regulations; educational requirements for licensure","order_by":null,"url":"\/54.1-2013\/"},{"id":82892,"section_number":"58.1-1800","catch_line":"Local treasurer to receive state taxes; list of delinquent taxes","order_by":null,"url":"\/58.1-1800\/"},{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"},{"id":64755,"section_number":"58.1-512.1","catch_line":"Determination of fair market value of donation","order_by":null,"url":"\/58.1-512.1\/"},{"id":63964,"section_number":"58.1-513","catch_line":"Limitations; transfer of credit; gain or loss from tax credit","order_by":null,"url":"\/58.1-513\/"}],"permalink":{"id":254061,"object_type":"law","relational_id":76719,"identifier":"58.1-512","token":"58.1\/I\/3\/20.1\/58.1-512","url":"\/58.1-512\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-512\/","token":"58.1\/I\/3\/20.1\/58.1-512","dublin_core":{"Title":"Land preservation tax credits for individuals and corporations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-512","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> 1. For taxable years beginning on or after January 1, 2000, there shall be allowed as a credit against the tax liability imposed by \u00a7\u00a7 58.1-320<\/a> and 58.1-400<\/a>, an amount equal to 50 percent of the fair market value of any land or interest in land located in Virginia that is conveyed for the purpose of agricultural and forestal use, open space, natural resource, and\/or biodiversity conservation, or land, agricultural, watershed and\/or historic preservation, as an unconditional donation by the landowner\/taxpayer<\/span> to a public or private conservation agency eligible to hold such land and interests therein for conservation or preservation purposes. For such conveyances made on or after January 1, 2007, the tax credit shall be 40 percent of the fair market value of the land or interest in land so conveyed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> a. If the Commonwealth or an instrumentality thereof operates a facility on a conveyance, including charging fees for the use of such facility, such operation shall not disqualify the conveyance from eligibility for the tax credit, so long as any fees are used for conservation or preservation purposes.\n\t\t\t\tb. If the Commonwealth or an instrumentality thereof enters into an agreement with a third party<\/span> to lease or manage a facility on a conveyance, the fact<\/span> that such third party<\/span> is operated primarily as a business with intent<\/span> for profit shall not disqualify the conveyance from eligibility for the tax credit, so long as such agreement is for conservation or preservation purposes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The fair market value of qualified donations made under this section shall be determined in accordance with § 58.1-512.1<\/a> and substantiated by a “qualified appraisal” prepared by a “qualified appraiser,” as those terms are defined under applicable federal law<\/span> and regulations governing charitable contributions. The value of the donated interest in land that qualifies for credit under this section, as determined according to appropriate federal law<\/span> and regulations, shall be subject to the limits established by United States Internal Revenue Code § 170(e). In order<\/span> to qualify for a tax credit under this section, the qualified appraisal shall be signed by the qualified appraiser, who must be licensed in the Commonwealth of Virginia as provided in § 54.1-2011<\/a>, and a copy of the appraisal shall be submitted to the Department<\/span>. In the event that any appraiser falsely or fraudulently overstates the value of the contributed property in an appraisal that the appraiser has signed, the Department<\/span> may disallow further appraisals signed by the appraiser and shall refer the appraiser to the Real Estate<\/span> Appraiser Board for appropriate disciplinary action pursuant to § 54.1-2013<\/a>, which may include, but need not be limited to, revocation<\/span> of the appraiser’s license. Any appraisal that, upon audit by the Department<\/span>, is determined to be false or fraudulent, may be disregarded by the Department<\/span> in determining the fair market value of the property and the amount of tax credit to be allowed under this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. The amount of the credit that may be claimed by each taxpayer<\/span>, including credit claimed by applying unused credits as provided under subsection C of \u00a7 58.1-513<\/a>, shall not exceed $50,000 for 2000 taxable years; $75,000 for 2001 taxable years; $100,000 for each of 2002 through 2008 taxable years; $50,000 for each of 2009, 2010, and 2011 taxable years; $100,000 for each of 2012, 2013, and 2014 taxable years; $20,000 for each of 2015, 2016, and 2017 taxable years; and $50,000 for 2018 taxable years and for each taxable year thereafter. However, for any fee simple donation of land conveyed to the Commonwealth on or after January 1, 2015, the amount of the credit claimed shall not exceed $100,000 for each taxable year, provided that no part of the charitable contributions deduction under \u00a7 170 of the Internal Revenue Code related to such fee simple donation is allowable by reason of a sale or exchange of property. In addition, for each taxpayer<\/span>, in any one taxable year the credit used may not exceed the amount of individual<\/span>, fiduciary or corporate income tax otherwise due. Any portion of the credit that is unused in any one taxable year may be carried over for a maximum of 10 consecutive taxable years following the taxable year in which the credit originated until fully expended. A credit shall not be reduced by the amount of unused credit that could have been claimed in a prior year by the taxpayer<\/span> but was unclaimed. For taxpayers<\/span> affected by the credit reduction for taxable years 2009, 2010, 2011, and 2015 and thereafter, any portion of the credit that is unused in any one taxable year may be carried over for a maximum of 13 consecutive taxable years following the taxable year in which the credit originated until fully expended. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Qualified donations shall include the conveyance of a fee interest in real property or the conveyance in perpetuity of a less-than-fee interest in real property, such as a conservation restriction, preservation restriction, agricultural preservation restriction, or watershed preservation restriction, provided that such less-than-fee interest qualifies as a charitable deduction under § 170(h) of the United States Internal Revenue Code of 1986, as amended.\n\t\t\t\tThe Department<\/span> of Conservation and Recreation shall compile an annual report on qualified donations of less-than-fee interests accepted by any public or private conservation agency in the respective calendar year and shall submit the report by December 1 of each year to the Chairmen of the House Committee on Appropriations, House Committee on Finance, and the Senate Committee on Finance and Appropriations. In preparing such report, the Department<\/span> of Conservation and Recreation shall consult and coordinate with the Department<\/span> of Taxation and the Departments<\/span> of Forestry and Agriculture and Consumer Services to provide an estimate of the number of acres of land currently being used for “production agriculture and silviculture<\/span>” as defined in § 3.2-300<\/a> that have been protected by qualified donations of less-than-fee interests. This report shall include information, when available, on land qualifying for credits being used for “production agriculture and silviculture<\/span>” that have onsite operational best management practices, which are designed to reduce the amount of nutrients and sediment entering public waters. In addition, the report shall include information, when available, on riparian buffers, both vegetated\/forested buffers and no-plow buffers, required by deed restriction on land qualifying for credits in order<\/span> to protect water quality. This information shall be reported in summary fashion as appropriate to preserve confidentiality of information. Qualified donations shall not include the conveyance of a fee interest, or a less-than-fee interest, in real property by a charitable organization that (i) meets the definition of “holder<\/span>” in § 10.1-1009<\/a> and (ii) holds one or more conservation easements acquired pursuant to the authority conferred on a “holder<\/span>” by § 10.1-1010<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any fee interest, or a less-than-fee interest, in real property that has been dedicated as open space within, or as part of, a residential subdivision or any other type of residential or commercial development; dedicated as open space in, or as part of, any real estate<\/span> development plan; or dedicated for the purpose of fulfilling density requirements to obtain approvals for zoning, subdivision, site plan, or building permits shall not be a qualified donation under this article. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Qualified donations shall be eligible for the tax credit herein described if such donations are made to the Commonwealth of Virginia, an instrumentality thereof, or a charitable organization described in § 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, if such charitable organization (i) meets the requirements of § 509(a)(2) or (ii) meets the requirements of § 509(a)(3) and is controlled by an organization described in § 509(a)(2). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The preservation, agricultural preservation, historic preservation or similar use and purpose of such property shall be assured in perpetuity. In the case of conveyances of a fee interest to a charitable organization that is a “holder<\/span>” as defined in § 10.1-1009<\/a>, the credit shall not be allowed until the charitable organization agrees that subsequent conveyances of the fee interest in the property will be (i) subject to a previous conveyance in perpetuity of a conservation easement, as that term is defined in § 10.1-1009<\/a>, or subject to the conveyance in perpetuity of an open-space easement, as that term is defined in § 10.1-1700<\/a>, or (ii) conveyed to the Commonwealth of Virginia or to a federal conservation agency. No credit shall be allowed with respect to any subsequent conveyances by the charitable organization. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The issuance of tax credits under this article for donations made on and after January 1, 2007, shall be in accordance with procedures and deadlines established by the Department<\/span> and shall be administered under the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The taxpayer<\/span> shall apply for a credit after completing the donation by submitting a form or forms prescribed by the Department<\/span> in consultation with the Department<\/span> of Conservation and Recreation. If the application requests a credit of $1 million or more or if the donation meets the conditions of subdivision 3 c, then a copy of the application shall also be filed with the Department<\/span> of Conservation and Recreation by the taxpayer<\/span>. The application shall include, but not be limited to:\n\t\t\t\ta. A description of the conservation purpose or purposes being served by the donation;\n\t\t\t\tb. The fair market value of land being donated in the absence of any easement or other restriction;\n\t\t\t\tc. The public benefit derived from the donation;\n\t\t\t\td. The extent to which water quality best management practices will be implemented on the property; and\n\t\t\t\te. Whether the property is fully or partially forested and a forest management plan is included in the terms of the donation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Applications for otherwise qualified donations of a less-than-fee interest shall be accompanied by an affidavit<\/span> describing how the donated interest in land meets the requirements of § 170(h) of the United States Internal Revenue Code of 1986, as amended, and the regulations adopted thereunder. The application with accompanying affidavit<\/span> shall be submitted to the Department<\/span> of Taxation, with a copy also provided to the Department<\/span> of Conservation and Recreation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> a. No credit in the amount of $1 million or more shall be issued with respect to a donation unless the conservation value of the donation has been verified by the Director of the Department<\/span> of Conservation and Recreation, based on the criteria adopted by the Virginia Land Conservation Foundation for this purpose. Such criteria and subsequent amendments shall be exempt from the Administrative Process Act (§ 2.2-4000<\/a> et seq.), but the Virginia Land Conservation Foundation shall provide for adequate public participation, including adequate notice and opportunity to provide comments on the proposed criteria. The Director shall act on applications within 90 days of his receipt of a complete application and shall notify the taxpayer<\/span> and the Department<\/span> of Taxation of his action.\n\t\t\t\tb. For purposes of determining whether a credit requires verification of the conservation value, the credits allowed under this article with respect to donations of any other portion of a recorded parcel of land within the preceding 11 years shall be aggregated with the credit claimed for the current donation. This subdivision shall not apply if (i) all owners of the parcel who have been allowed credit for a qualified donation are not affiliated<\/span> with the person or entity seeking credit for the current donation of a different portion of the parcel and (ii) in the case of an individual<\/span> seeking credit, the individual<\/span> has not previously made a qualified donation for any portion of the parcel and is not an immediate family member of any such owners.\n\t\t\t\tc. If (i) the real property that is the subject of the donation was partitioned from or part of another parcel of land and any other portion of such parcel, or any land partitioned from such parcel of land, has been allowed a tax credit under this article (or an application for tax credit is pending) within three years of such donation and (ii) the tax credit that would otherwise be allowed to the donor for such donation is at least $250,000, then no credit under this article shall be issued with respect to such donation described in clause (i) unless the conservation value of the donation has been verified by the Director of the Department<\/span> of Conservation and Recreation. The Director shall act on applications within 90 days of his receipt of a complete application and shall notify the taxpayer<\/span> and the Department<\/span> of Taxation of his action. Nothing in this subdivision shall be construed or interpreted (a) as allowing additional tax credit for any land or interest in land previously conveyed for which tax credit has already been allowed under this article or (b) affecting the validity of any tax credit allowed under this article for a prior conveyance of any land or interest in land. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> a. Tax credits shall be issued on a calendar year basis, and in no case shall the Department<\/span> issue<\/span> more than the maximum allowed for the calendar year. The maximum amount of credits that may be issued in a calendar year shall be $100 million plus any credits previously issued under this article but subsequently disallowed or invalidated by the Department<\/span>. Credits previously issued but subsequently disallowed or invalidated shall be reissued in a subsequent calendar year. All credits shall be issued in the order<\/span> that each complete application is filed. For filings by mail or a recognized commercial delivery service, the postmark or confirmation of shipment shall determine the date of filing. If within 30 days after an application for credits has been filed the Tax Commissioner<\/span> provides written notice to the donor that he has determined that the preparation of a second qualified appraisal is warranted, the application shall not be deemed complete until the fair market value of the donation has been finally determined by the Tax Commissioner<\/span>. The Tax Commissioner<\/span> shall make a final determination within 180 days of notifying the donor, unless the donor has filed an appeal<\/span>. The donor shall have the right to appeal<\/span> any decision of the Department<\/span> in accordance with the provisions of Chapter 18 (§ 58.1-1800<\/a> et seq.). If more than one complete application is filed at the same time, the credits with respect to those applications shall be issued in the order<\/span> that the conveyances were recorded in the appropriate circuit<\/span> court<\/span> of the Commonwealth. In the event that a credit requires verification of the conservation value by the Department<\/span> of Conservation and Recreation and such verification has not been received at the time the maximum $100 million allowed is reached for the calendar year of the donation, such credit shall not be issued for that calendar year but shall be issued in the calendar year that the conservation value of the credit is verified by the Department<\/span> of Conservation and Recreation.\n\t\t\t\tNo credit shall be allowed for any land or interest in land conveyed unless (i) for a conveyance made before January 1, 2020, a complete application for tax credit with regard to the conveyance has been filed with the Department<\/span> by December 31 of the third year following the calendar year of the conveyance or (ii) for a conveyance made on or after January 1, 2020, a complete application for tax credit with regard to the conveyance has been filed with the Department<\/span> by December 31 of the second year following the calendar year of the conveyance. For filings by mail or a recognized commercial delivery service, the postmark or confirmation of shipment shall determine the date of filing. Solely for purposes of this condition, any application for which the Tax Commissioner<\/span> has given written notice to the donor that the preparation of a second qualified appraisal is warranted shall be deemed timely filed, provided that the application was otherwise complete as of such filing deadline. For conveyances made on and after January 1, 2017, the deadlines provided by clauses (i) and (ii) of this subdivision shall be extended for any number of days exceeding 90 during which an application for tax credit is being reviewed for verification of conservation value by the Department<\/span> of Conservation and Recreation, if the application was otherwise complete at the time of the original filing deadline.\n\t\t\t\tb. Beginning with calendar year 2008, the $100 million amount contained in subdivision 4 a shall be increased by an amount equal to $100 million multiplied by the percentage by which the consumer price index for all-urban consumers published by the United States Department<\/span> of Labor (CPI-U) for the 12-month period ending August 31 of the preceding year exceeds the CPI-U for the 12-month period ending August 31, 2006.\n\t\t\t\tc. Beginning with calendar year 2015, the maximum amount of credits that may be issued in a calendar year shall not exceed $75 million. In no case shall the Department<\/span> issue<\/span> any tax credit for a donation from any allocation or pool of tax credits attributable to a calendar year prior to the year in which the complete tax credit application for the donation was filed.\n\t\t\t\tBeginning with the submission due on or before December 20, 2015, and in each year thereafter, the Governor shall include in “The Budget Bill<\/span>” submitted pursuant to subsection A of § 2.2-1509<\/a> or in his amendments to the general appropriation act in effect submitted pursuant to subsection E of § 2.2-1509<\/a> a recommended appropriation from the general fund equal to the difference between the amount calculated pursuant to subdivision b and $75 million, but not more than $20 million, to be allocated as follows: 80 percent to the Virginia Land Conservation Fund to be used in accordance with § 10.1-1020<\/a>, with no less than 50 percent of such appropriation to be used for fee simple acquisitions with public access or acquisitions of easements with public access; 10 percent to the Virginia Battlefield Preservation Fund to be used in accordance with § 10.1-2202.4<\/a>; and 10 percent to the Virginia Farmland and Forestland Preservation Fund to be used in accordance with § 10.1-1119.3<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> a. Any taxpayer<\/span> that has been issued a tax credit by the Department<\/span> shall be allowed to use such credit for his or its taxable year that begins in the calendar year for which such credit was issued and for succeeding taxable years in accordance with the 10 consecutive taxable year carryforward provisions of this article, except for any taxpayer<\/span> affected by the credit limitation for taxable years 2009, 2010, 2011, and 2015 and taxable years thereafter. Such a taxpayer<\/span> shall be allowed to use such credit for his or its taxable year that begins in the calendar year for which such credit was issued and for succeeding taxable years in accordance with the 13 consecutive taxable year carryforward provisions of this article.\n\t\t\t\tb. Any taxpayer<\/span> to whom a credit has been transferred may use such credit for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but in no event may such transferred credit be used more than 11 years after it was originally issued by the Department<\/span> or in any taxable year of such taxpayer<\/span> that ended prior to the date of transfer, except for any taxpayer<\/span> affected by the credit limitation for taxable years 2009, 2010, 2011, and 2015 and taxable years thereafter. Such a taxpayer<\/span> may use such credit for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but in no event may such transferred credit be used more than 14 years after it was originally issued by the Department<\/span> or in any taxable year of such taxpayer<\/span> that ended prior to the date of transfer. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Neither the verification of conservation value by the Department<\/span> of Conservation and Recreation nor the issuance of a credit by the Department<\/span> of Taxation shall in any way be construed or interpreted as prohibiting the Department<\/span> of Taxation or the Tax Commissioner<\/span> from auditing any credit claimed pursuant to the provisions of this article or from assessing tax relating to the claiming of any credit under this article. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> In any review or appeal<\/span> before the Tax Commissioner<\/span> or in any court<\/span> in the Commonwealth the burden of proof<\/span> shall be on the taxpayer<\/span> to show that the fair market value and conservation value at the time of the qualified donation is consistent with this section and that all requirements of this article have been satisfied. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLAND PRESERVATION TAX CREDITS FOR INDIVIDUALS AND CORPORATIONS (\u00a7 58.1-512)\n\nA. 1. For taxable years beginning on or after January 1, 2000, there shall be\nallowed as a credit against the tax liability imposed by \u00a7\u00a7 58.1-320 and\n58.1-400, an amount equal to 50 percent of the fair market value of any land or\ninterest in land located in Virginia that is conveyed for the purpose of\nagricultural and forestal use, open space, natural resource, and\/or biodiversity\nconservation, or land, agricultural, watershed and\/or historic preservation, as\nan unconditional donation by the landowner\/taxpayer to a public or private\nconservation agency eligible to hold such land and interests therein for\nconservation or preservation purposes. For such conveyances made on or after\nJanuary 1, 2007, the tax credit shall be 40 percent of the fair market value of\nthe land or interest in land so conveyed.\n\n 2. a. If the Commonwealth or an instrumentality thereof operates a facility on\n a conveyance, including charging fees for the use of such facility, such\n operation shall not disqualify the conveyance from eligibility for the tax\n credit, so long as any fees are used for conservation or preservation\n purposes.\n \t\t\t\tb. If the Commonwealth or an instrumentality thereof enters into an\n agreement with a third party to lease or manage a facility on a conveyance,\n the fact that such third party is operated primarily as a business with intent\n for profit shall not disqualify the conveyance from eligibility for the tax\n credit, so long as such agreement is for conservation or preservation\n purposes.\n\nB. The fair market value of qualified donations made under this section shall be\ndetermined in accordance with § 58.1-512.1 and substantiated by a\n“qualified appraisal” prepared by a “qualified\nappraiser,” as those terms are defined under applicable federal law and\nregulations governing charitable contributions. The value of the donated\ninterest in land that qualifies for credit under this section, as determined\naccording to appropriate federal law and regulations, shall be subject to the\nlimits established by United States Internal Revenue Code § 170(e). In\norder to qualify for a tax credit under this section, the qualified appraisal\nshall be signed by the qualified appraiser, who must be licensed in the\nCommonwealth of Virginia as provided in § 54.1-2011, and a copy of the\nappraisal shall be submitted to the Department. In the event that any appraiser\nfalsely or fraudulently overstates the value of the contributed property in an\nappraisal that the appraiser has signed, the Department may disallow further\nappraisals signed by the appraiser and shall refer the appraiser to the Real\nEstate Appraiser Board for appropriate disciplinary action pursuant to §\n54.1-2013, which may include, but need not be limited to, revocation of the\nappraiser’s license. Any appraisal that, upon audit by the Department, is\ndetermined to be false or fraudulent, may be disregarded by the Department in\ndetermining the fair market value of the property and the amount of tax credit\nto be allowed under this section.\n\nC. 1. The amount of the credit that may be claimed by each taxpayer, including\ncredit claimed by applying unused credits as provided under subsection C of \u00a7\n58.1-513, shall not exceed $50,000 for 2000 taxable years; $75,000 for 2001\ntaxable years; $100,000 for each of 2002 through 2008 taxable years; $50,000 for\neach of 2009, 2010, and 2011 taxable years; $100,000 for each of 2012, 2013, and\n2014 taxable years; $20,000 for each of 2015, 2016, and 2017 taxable years; and\n$50,000 for 2018 taxable years and for each taxable year thereafter. However,\nfor any fee simple donation of land conveyed to the Commonwealth on or after\nJanuary 1, 2015, the amount of the credit claimed shall not exceed $100,000 for\neach taxable year, provided that no part of the charitable contributions\ndeduction under \u00a7 170 of the Internal Revenue Code related to such fee simple\ndonation is allowable by reason of a sale or exchange of property. In addition,\nfor each taxpayer, in any one taxable year the credit used may not exceed the\namount of individual, fiduciary or corporate income tax otherwise due. Any\nportion of the credit that is unused in any one taxable year may be carried over\nfor a maximum of 10 consecutive taxable years following the taxable year in\nwhich the credit originated until fully expended. A credit shall not be reduced\nby the amount of unused credit that could have been claimed in a prior year by\nthe taxpayer but was unclaimed. For taxpayers affected by the credit reduction\nfor taxable years 2009, 2010, 2011, and 2015 and thereafter, any portion of the\ncredit that is unused in any one taxable year may be carried over for a maximum\nof 13 consecutive taxable years following the taxable year in which the credit\noriginated until fully expended.\n\n 2. Qualified donations shall include the conveyance of a fee interest in real\n property or the conveyance in perpetuity of a less-than-fee interest in real\n property, such as a conservation restriction, preservation restriction,\n agricultural preservation restriction, or watershed preservation restriction,\n provided that such less-than-fee interest qualifies as a charitable deduction\n under § 170(h) of the United States Internal Revenue Code of 1986, as\n amended.\n \t\t\t\tThe Department of Conservation and Recreation shall compile an annual\n report on qualified donations of less-than-fee interests accepted by any\n public or private conservation agency in the respective calendar year and\n shall submit the report by December 1 of each year to the Chairmen of the\n House Committee on Appropriations, House Committee on Finance, and the Senate\n Committee on Finance and Appropriations. In preparing such report, the\n Department of Conservation and Recreation shall consult and coordinate with\n the Department of Taxation and the Departments of Forestry and Agriculture and\n Consumer Services to provide an estimate of the number of acres of land\n currently being used for “production agriculture and silviculture”\n as defined in § 3.2-300 that have been protected by qualified donations\n of less-than-fee interests. This report shall include information, when\n available, on land qualifying for credits being used for “production\n agriculture and silviculture” that have onsite operational best\n management practices, which are designed to reduce the amount of nutrients and\n sediment entering public waters. In addition, the report shall include\n information, when available, on riparian buffers, both vegetated\/forested\n buffers and no-plow buffers, required by deed restriction on land qualifying\n for credits in order to protect water quality. This information shall be\n reported in summary fashion as appropriate to preserve confidentiality of\n information. Qualified donations shall not include the conveyance of a fee\n interest, or a less-than-fee interest, in real property by a charitable\n organization that (i) meets the definition of “holder” in §\n 10.1-1009 and (ii) holds one or more conservation easements acquired pursuant\n to the authority conferred on a “holder” by § 10.1-1010.\n\n 3. Any fee interest, or a less-than-fee interest, in real property that has\n been dedicated as open space within, or as part of, a residential subdivision\n or any other type of residential or commercial development; dedicated as open\n space in, or as part of, any real estate development plan; or dedicated for\n the purpose of fulfilling density requirements to obtain approvals for zoning,\n subdivision, site plan, or building permits shall not be a qualified donation\n under this article.\n\n 4. Qualified donations shall be eligible for the tax credit herein described\n if such donations are made to the Commonwealth of Virginia, an instrumentality\n thereof, or a charitable organization described in § 501(c)(3) of the\n United States Internal Revenue Code of 1986, as amended, if such charitable\n organization (i) meets the requirements of § 509(a)(2) or (ii) meets the\n requirements of § 509(a)(3) and is controlled by an organization\n described in § 509(a)(2).\n\n 5. The preservation, agricultural preservation, historic preservation or\n similar use and purpose of such property shall be assured in perpetuity. In\n the case of conveyances of a fee interest to a charitable organization that is\n a “holder” as defined in § 10.1-1009, the credit shall not be\n allowed until the charitable organization agrees that subsequent conveyances\n of the fee interest in the property will be (i) subject to a previous\n conveyance in perpetuity of a conservation easement, as that term is defined\n in § 10.1-1009, or subject to the conveyance in perpetuity of an\n open-space easement, as that term is defined in § 10.1-1700, or (ii)\n conveyed to the Commonwealth of Virginia or to a federal conservation agency.\n No credit shall be allowed with respect to any subsequent conveyances by the\n charitable organization.\n\nD. The issuance of tax credits under this article for donations made on and\nafter January 1, 2007, shall be in accordance with procedures and deadlines\nestablished by the Department and shall be administered under the following\nconditions:\n\n 1. The taxpayer shall apply for a credit after completing the donation by\n submitting a form or forms prescribed by the Department in consultation with\n the Department of Conservation and Recreation. If the application requests a\n credit of $1 million or more or if the donation meets the conditions of\n subdivision 3 c, then a copy of the application shall also be filed with the\n Department of Conservation and Recreation by the taxpayer. The application\n shall include, but not be limited to:\n \t\t\t\ta. A description of the conservation purpose or purposes being served by\n the donation;\n \t\t\t\tb. The fair market value of land being donated in the absence of any\n easement or other restriction;\n \t\t\t\tc. The public benefit derived from the donation;\n \t\t\t\td. The extent to which water quality best management practices will be\n implemented on the property; and\n \t\t\t\te. Whether the property is fully or partially forested and a forest\n management plan is included in the terms of the donation.\n\n 2. Applications for otherwise qualified donations of a less-than-fee interest\n shall be accompanied by an affidavit describing how the donated interest in\n land meets the requirements of § 170(h) of the United States Internal\n Revenue Code of 1986, as amended, and the regulations adopted thereunder. The\n application with accompanying affidavit shall be submitted to the Department\n of Taxation, with a copy also provided to the Department of Conservation and\n Recreation.\n\n 3. a. No credit in the amount of $1 million or more shall be issued with\n respect to a donation unless the conservation value of the donation has been\n verified by the Director of the Department of Conservation and Recreation,\n based on the criteria adopted by the Virginia Land Conservation Foundation for\n this purpose. Such criteria and subsequent amendments shall be exempt from the\n Administrative Process Act (§ 2.2-4000 et seq.), but the Virginia Land\n Conservation Foundation shall provide for adequate public participation,\n including adequate notice and opportunity to provide comments on the proposed\n criteria. The Director shall act on applications within 90 days of his receipt\n of a complete application and shall notify the taxpayer and the Department of\n Taxation of his action.\n \t\t\t\tb. For purposes of determining whether a credit requires verification of\n the conservation value, the credits allowed under this article with respect to\n donations of any other portion of a recorded parcel of land within the\n preceding 11 years shall be aggregated with the credit claimed for the current\n donation. This subdivision shall not apply if (i) all owners of the parcel who\n have been allowed credit for a qualified donation are not affiliated with the\n person or entity seeking credit for the current donation of a different\n portion of the parcel and (ii) in the case of an individual seeking credit,\n the individual has not previously made a qualified donation for any portion of\n the parcel and is not an immediate family member of any such owners.\n \t\t\t\tc. If (i) the real property that is the subject of the donation was\n partitioned from or part of another parcel of land and any other portion of\n such parcel, or any land partitioned from such parcel of land, has been\n allowed a tax credit under this article (or an application for tax credit is\n pending) within three years of such donation and (ii) the tax credit that\n would otherwise be allowed to the donor for such donation is at least\n $250,000, then no credit under this article shall be issued with respect to\n such donation described in clause (i) unless the conservation value of the\n donation has been verified by the Director of the Department of Conservation\n and Recreation. The Director shall act on applications within 90 days of his\n receipt of a complete application and shall notify the taxpayer and the\n Department of Taxation of his action. Nothing in this subdivision shall be\n construed or interpreted (a) as allowing additional tax credit for any land or\n interest in land previously conveyed for which tax credit has already been\n allowed under this article or (b) affecting the validity of any tax credit\n allowed under this article for a prior conveyance of any land or interest in\n land.\n\n 4. a. Tax credits shall be issued on a calendar year basis, and in no case\n shall the Department issue more than the maximum allowed for the calendar\n year. The maximum amount of credits that may be issued in a calendar year\n shall be $100 million plus any credits previously issued under this article\n but subsequently disallowed or invalidated by the Department. Credits\n previously issued but subsequently disallowed or invalidated shall be reissued\n in a subsequent calendar year. All credits shall be issued in the order that\n each complete application is filed. For filings by mail or a recognized\n commercial delivery service, the postmark or confirmation of shipment shall\n determine the date of filing. If within 30 days after an application for\n credits has been filed the Tax Commissioner provides written notice to the\n donor that he has determined that the preparation of a second qualified\n appraisal is warranted, the application shall not be deemed complete until the\n fair market value of the donation has been finally determined by the Tax\n Commissioner. The Tax Commissioner shall make a final determination within 180\n days of notifying the donor, unless the donor has filed an appeal. The donor\n shall have the right to appeal any decision of the Department in accordance\n with the provisions of Chapter 18 (§ 58.1-1800 et seq.). If more than one\n complete application is filed at the same time, the credits with respect to\n those applications shall be issued in the order that the conveyances were\n recorded in the appropriate circuit court of the Commonwealth. In the event\n that a credit requires verification of the conservation value by the\n Department of Conservation and Recreation and such verification has not been\n received at the time the maximum $100 million allowed is reached for the\n calendar year of the donation, such credit shall not be issued for that\n calendar year but shall be issued in the calendar year that the conservation\n value of the credit is verified by the Department of Conservation and\n Recreation.\n \t\t\t\tNo credit shall be allowed for any land or interest in land conveyed\n unless (i) for a conveyance made before January 1, 2020, a complete\n application for tax credit with regard to the conveyance has been filed with\n the Department by December 31 of the third year following the calendar year of\n the conveyance or (ii) for a conveyance made on or after January 1, 2020, a\n complete application for tax credit with regard to the conveyance has been\n filed with the Department by December 31 of the second year following the\n calendar year of the conveyance. For filings by mail or a recognized\n commercial delivery service, the postmark or confirmation of shipment shall\n determine the date of filing. Solely for purposes of this condition, any\n application for which the Tax Commissioner has given written notice to the\n donor that the preparation of a second qualified appraisal is warranted shall\n be deemed timely filed, provided that the application was otherwise complete\n as of such filing deadline. For conveyances made on and after January 1, 2017,\n the deadlines provided by clauses (i) and (ii) of this subdivision shall be\n extended for any number of days exceeding 90 during which an application for\n tax credit is being reviewed for verification of conservation value by the\n Department of Conservation and Recreation, if the application was otherwise\n complete at the time of the original filing deadline.\n \t\t\t\tb. Beginning with calendar year 2008, the $100 million amount contained in\n subdivision 4 a shall be increased by an amount equal to $100 million\n multiplied by the percentage by which the consumer price index for all-urban\n consumers published by the United States Department of Labor (CPI-U) for the\n 12-month period ending August 31 of the preceding year exceeds the CPI-U for\n the 12-month period ending August 31, 2006.\n \t\t\t\tc. Beginning with calendar year 2015, the maximum amount of credits that\n may be issued in a calendar year shall not exceed $75 million. In no case\n shall the Department issue any tax credit for a donation from any allocation\n or pool of tax credits attributable to a calendar year prior to the year in\n which the complete tax credit application for the donation was filed.\n \t\t\t\tBeginning with the submission due on or before December 20, 2015, and in\n each year thereafter, the Governor shall include in “The Budget\n Bill” submitted pursuant to subsection A of § 2.2-1509 or in his\n amendments to the general appropriation act in effect submitted pursuant to\n subsection E of § 2.2-1509 a recommended appropriation from the general\n fund equal to the difference between the amount calculated pursuant to\n subdivision b and $75 million, but not more than $20 million, to be allocated\n as follows: 80 percent to the Virginia Land Conservation Fund to be used in\n accordance with § 10.1-1020, with no less than 50 percent of such\n appropriation to be used for fee simple acquisitions with public access or\n acquisitions of easements with public access; 10 percent to the Virginia\n Battlefield Preservation Fund to be used in accordance with §\n 10.1-2202.4; and 10 percent to the Virginia Farmland and Forestland\n Preservation Fund to be used in accordance with § 10.1-1119.3.\n\n 5. a. Any taxpayer that has been issued a tax credit by the Department shall\n be allowed to use such credit for his or its taxable year that begins in the\n calendar year for which such credit was issued and for succeeding taxable\n years in accordance with the 10 consecutive taxable year carryforward\n provisions of this article, except for any taxpayer affected by the credit\n limitation for taxable years 2009, 2010, 2011, and 2015 and taxable years\n thereafter. Such a taxpayer shall be allowed to use such credit for his or its\n taxable year that begins in the calendar year for which such credit was issued\n and for succeeding taxable years in accordance with the 13 consecutive taxable\n year carryforward provisions of this article.\n \t\t\t\tb. Any taxpayer to whom a credit has been transferred may use such credit\n for the taxable year in which the transfer occurred and unused amounts may be\n carried forward to succeeding taxable years, but in no event may such\n transferred credit be used more than 11 years after it was originally issued\n by the Department or in any taxable year of such taxpayer that ended prior to\n the date of transfer, except for any taxpayer affected by the credit\n limitation for taxable years 2009, 2010, 2011, and 2015 and taxable years\n thereafter. Such a taxpayer may use such credit for the taxable year in which\n the transfer occurred and unused amounts may be carried forward to succeeding\n taxable years, but in no event may such transferred credit be used more than\n 14 years after it was originally issued by the Department or in any taxable\n year of such taxpayer that ended prior to the date of transfer.\n\n 6. Neither the verification of conservation value by the Department of\n Conservation and Recreation nor the issuance of a credit by the Department of\n Taxation shall in any way be construed or interpreted as prohibiting the\n Department of Taxation or the Tax Commissioner from auditing any credit\n claimed pursuant to the provisions of this article or from assessing tax\n relating to the claiming of any credit under this article.\n\nE. In any review or appeal before the Tax Commissioner or in any court in the\nCommonwealth the burden of proof shall be on the taxpayer to show that the fair\nmarket value and conservation value at the time of the qualified donation is\nconsistent with this section and that all requirements of this article have been\nsatisfied.\n\nHISTORY: 1999, cc. 968, 983; 2005, c. 940; 2006, Sp. Sess. I, cc. 4, 5; 2009,\ncc. 12, 510; 2010, cc. 246, 265, 321, 384; 2011, cc. 212, 296, 377, 672; 2013,\nc. 798; 2015, cc. 235, 467, 680; 2017, c. 424; 2019, cc. 183, 649; 2023, c. 173;\n2024, cc. 10, 146.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}