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Livable Home Tax Credit

years for donations originating prior to January 1, 2007 and 10

years for donations originating on or after January 1, 2007) .

Individuals or licensed contractors may be eligible for an

income tax credit of up to $5,000 for the purchase/construction

Any taxpayer holding a Land Preservation Tax Credit that

of a new accessible residence or up to 50% of the cost of

originated on or after January 1, 2002, may transfer unused

retrofitting activities on an existing residence not to exceed

but otherwise allowable credit for use by another taxpayer

$5,000 . Any tax credit that exceeds the eligible individual’s

on Virginia income tax returns . Transfers and pass-through

or licensed contractor’s tax liability may be carried forward

allocations derived from donations recorded on or after January

for up to seven years . If the total amount of tax credits

1, 2007, are subject to a fee . See Schedule A of Form LPC-1

issued under this program exceeds $1 million in a fiscal year,

or Form LPC-2 for further information .

Virginia Department of Housing and Community Development

If this credit is taken, then for the next three years taxpayers

(DHCD) will prorate the amount of credits among the eligible

cannot take a subtraction for the gain on the sale of land or

applicants . Individuals or licensed contractors must obtain pre-

easements dedicated to open-space use . A subtraction is

approval before claiming the credit on their income tax returns .

allowed for any gain or income recognized by a taxpayer on

Applications are to be filed with the DHCD by February 28 of the

the application of a Land Preservation Tax Credit against a

year following the year in which the purchase/construction or

Virginia income tax liability to the extent the gain is included

retrofitting was completed . Documentation must be submitted

in and not otherwise subtracted from federal adjusted gross

with the application . If you are using a carryforward amount

income . The transfer of the credit and its application against

from the Home Accessibility Tax Credit/Livable Home Tax

a tax liability shall not create gain or loss for the transferor or

Credit, please enter that amount in Section 1, Part 20, Line

the transferee .

B . For more information, contact: Virginia Department of

Before claiming the credit, complete and file Form LPC-1

Housing and Community Development, Special Needs

and/or Form LPC-2 with the Department of Taxation at least

Housing, Main Street Centre, 600 East Main Street, Suite

90 days before filing an annual return . Additionally, applicants

300, Richmond, VA 23219, or call 804-371-7124.

filing for tax credits of $1 million or more must apply to the

Riparian Forest Buffer Protection for Waterways Tax

Department of Conservation and Recreation to receive

Credit

verification of the conservation value . The Department of

Individuals, grantor’s trusts and corporations may qualify

Taxation will issue a letter acknowledging the amount of the

for an income tax credit of 25% of the value of the timber on

credit . For assistance contact the Virginia Department of

an area designated as a riparian buffer for a waterway . The

Taxation, Tax Credit Unit, P. O. Box 715, Richmond, VA

credit may not exceed $17,500 or the total amount of tax,

23218-0715, or call 804-786-2992.

whichever is less . To apply for this credit, file Department of

Community of Opportunity Tax Credit

Forestry (DOF) Form 179 with DOF or apply online at www.

Community of Opportunity Tax Credit provides Virginia

dof.virginia.gov .

income tax credits to landlords with qualified housing units

A riparian buffer is land adjacent to a waterway on which

located in census tracts with poverty rates of less than ten

timber may be harvested . In order to receive the credit, the

percent in the Richmond Metropolitan Statistical Area who

owner of such land must refrain from harvesting more than

participate in the Housing Choice Voucher program .

50% of such timber . The buffer must be at least 35 feet wide

The amount of tax credit for an eligible property will be

and no more than 300 feet . There must be a Stewardship

based on ten percent of annual fair market rent for that specific

Plan and annual certification of compliance for each tract . The

unit and prorated when units are qualified for less than the full

buffer must remain in place for at least fifteen years . The land

tax year . Prorations will be based on full calendar months . A

that is the subject of this credit cannot be the subject of this

landlord may receive tax credits on one or more units within

credit again for fifteen years after it was first taken . The credit

the same tax year . Credits taken for any one tax year cannot

may be carried over for the succeeding five taxable years . For

exceed the tax liability for that year . Credits not taken for the

more information contact: Virginia Department of Forestry,

year for which they are allocated may be carried forward, but

900 Natural Resources Dr., Suite 800, Charlottesville, VA

cannot be carried forward for more than five years .

22903, or call 434-977-6555.

Should eligible applications received by the March 1

Land Preservation Tax Credit

deadline exceed the annual appropriation, tax credits will

This tax credit is for taxpayers that convey land or interest

be prorated based on the total amount of qualified requests

in land located in Virginia to a public or private agency eligible

received and the total amount of credits available . If the annual

to hold such land or interests therein for conservation or

appropriation for tax credits is not fully allocated based on

preservation purposes . The conveyance must be in perpetuity .

qualified applications received by the March 1 deadline, the

Credits granted prior to 2007 are 50% and the credits

remaining balance will be allocated on a first-come first served

granted for 2007 and beyond are 40% of the fair market

basis . Unused balances will not be allocated more than three

value, as substantiated by a “qualified appraisal” prepared

years after the tax year in which they were first made available .

by a “qualified appraiser”, as those terms are defined under

Credits granted to a partnership, limited liability company,

applicable federal law and regulations governing charitable

or electing small business corporation (S corporation) shall be

contributions . The credit limit for a taxpayer has been

allocated to the individual partners, members, or shareholders

$100,000 . However, for taxable years 2009, 2010 and 2011

in proportion to their ownership or interest in such business

the total amount of credit that may be used per taxpayer

entity . The landlord must assume responsibility for distributing

per taxable year may not exceed $50,000 or the tax liability,

credits in this manner . No person shall be allowed a tax credit

whichever is less . The credit limit is $100,000 for the 2012

under Va. Code § 58 .1-339 .9 (Rent Reductions Tax Credit)

taxable year and for each taxable year thereafter . For taxpayers

and the Community of Opportunity Tax Credit tax credit for

affected by the 2009 and 2010 usage limit, an additional 2 year

the rental of the same dwelling unit in a taxable year .

carryforward will be added to the credit . For taxpayers affected

For additional information, please contact: Virginia

by the 2011 usage limit, an additional 3 years carryforward will

Department of Housing and Community Development,

be added to the credit . Any unused credit not affected by the

Main Street Centre, 600 East Main Street, Suite 300,

carryforward will retain the original carryforward periods (5

Richmond VA 23219, or call 804-371-7000 .

Virginia Schedule Cr Instructions - For Use With Forms 760, 760py, 763 And 765 General Information - 2012 Page 5

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