Conservation Easement Tax Credits in Virginia
Did you know Virginia landowners can receive a state tax credit worth 40% of their conservation easement donation? That’s a powerful financial incentive to preserve your property—up to $20,000 per year, carry forward for up to 10 years, and even transferable.
💡 What Are Conservation Easement Tax Credits?
Under Virginia’s Land Preservation Tax Credit program, you receive a state income tax credit equal to 40% of the appraised value of a qualifying easement or land donation :contentReference[oaicite:1]{index=1}.
You can use up to $20,000 per person per year, with any unused credit carried forward for up to 10 years :contentReference[oaicite:2]{index=2}.
👥 Transferring or Selling Tax Credits
Can’t use all your credits? You may sell or transfer the unused portion to another Virginia taxpayer—commonly at 70–90¢ on the dollar :contentReference[oaicite:3]{index=3}.
📈 Federal & Estate Tax Benefits
You may qualify for a federal charitable deduction as well—typically up to 50% of AGI (or 100% for farmers), with a 15-year carry-forward :contentReference[oaicite:4]{index=4}. Easements also lower estate value, potentially reducing estate taxes under IRC § 2031(c) :contentReference[oaicite:5]{index=5}.
⚖️ 2025 Update: Increased Annual Cap
Starting in 2025, Virginia’s annual cap on tax credits increases from $75 million to $100 million, adjusted annually for inflation :contentReference[oaicite:6]{index=6}.
📋 How to Qualify
- Work with a qualified land trust or conservation agency (501(c)(3) or public entity)
- Get a qualified appraisal showing before/after value reduction :contentReference[oaicite:7]{index=7}
- File forms LPC‑1 for credit and LPC‑2 for transfers
- Apply by December 31 of the second year after donation year :contentReference[oaicite:8]{index=8}
How Doummar Law Can Help
We assist landowners by:
- Structuring easements to maximize credit value
- Coordinating appraisals and filing LPC‑1/LPC‑2
- Advising on credit transfers and federal deductions
- Ensuring compliance with DCR and Dept. of Taxation deadlines
📞 Call (757) 422‑0061 or book a consultation to maximize your tax and conservation strategy.
📢 Get Your Conservation Easement Right
Protect your property and get financial benefits—the right way. Let Doummar Law guide your easement process.
