Instructions For Virginia Form Lpc-1, Application For A Land Preservation Credit, Virginia Agricultural Best Management Practices For Water Quality printable pdf download

Instructions for Virginia Form LPC-1, Application for a Land Preservation Credit

file an income tax return claiming the credit, subject to the

Purpose of Form LPC-1

statute of limitations.

Individual and corporate taxpayers may claim a credit against

You cannot transfer credit(s) until the Department has issued

their tax liability for the donation of land or an interest in land

you a credit for your donation. The Department is unable to

to an eligible public or private conservation agency.

guarantee that any LPC-1 application received in December

will be processed in time to make a transfer in that year.

The donation must be conveyed as an unconditional

donation in perpetuity by the taxpayer to an eligible public or

In addition, the sale or transfer of tax credits may have

private conservation agency for conservation or preservation

income tax consequences for the credit holder and the

purposes. Additionally, the land or interest in land must

transferee. You are encouraged to consult your attorney, tax

be located in Virginia. Form LPC-1 is used to apply to the

professional, or the Internal Revenue Service for advice.

Virginia Department of Taxation (the Department) for a

Forms to Complete

Land Preservation Credit following an eligible donation.

LPC-1 is also used by the Department of Conservation and

Do Not Complete a Separate LPC-1 for Each

Recreation (DCR) in their assessment of conservation value

Owner of the Same Donation

for tax credits of $1 million or more.

• Form LPC-1 for all donations.

DCR Pre-filing Review

• Schedule A if there is more than one credit holder, either

In order to facilitate successful applications for tax credits

because of multiple donors (including spouses when

of $1 million or more, the Director of DCR offers an optional

both are on the deed) of the donated property or pass-

review to verify conservation value prior to recordation of the

through entity.

easement. For more information, call 804-225-2048.

• Schedule B if the tax credit is $1 million or more, and the

Please note that a donation requesting a credit of $1

donation is a less-than-fee interest in land.

million or more is not eligible for a tax credit until it has

been verified by DCR. If the cap is reached before the

• Schedule C if the tax credit is $1 million or more and the

Department receives DCR verification, the credit will be

donation is a fee simple interest in land.

issued for the next available year. For example, if a 2012

• Form LPC-2 for all sales or transfers of Land Preservation

donation is not verified by DCR before the 2012 cap is met,

Tax Credits.

it will be issued as a 2013 credit.

What to Attach and Where to Submit Form LPC-1

When to Submit Form LPC-1

To avoid delays in the processing of your annual return,

A) Virginia Department of Taxation

Form LPC-1 should be submitted to the Department within

Applications Must Include the Following Attachments:

90 days following the donation, but at least 90 days before

• A copy of the recorded deed of donation.

you file your annual return to claim the credit. Applicants for

tax credits of $1 million or more should apply at least 120

• A copy of the completed and signed IRS Form 8283.

days before filing an annual return.

• A copy or CD of the full appraisal.

Upon receipt of your completed Form LPC-1, the Department

• A signed statement (made under penalty of perjury that

will record the transaction and provide the credit holder with

meets the requirements under Va. Code § 8.01-4.3)

a letter acknowledging the credit and a receipt for any fees

or a notarized affidavit from the appraiser stating that

paid.

the appraisal complies with Va. Code § 58.1-512.1(C),

Please note that this acknowledgment does not constitute

which states that: “Any appraisal submitted in support

the Department’s approval of the amount of the Land

of an application for a credit under this article shall

Preservation Tax Credit that may be claimed. The amount

include an affidavit by the appraiser that to the best of

of the tax credit identified above is subject to subsequent

his knowledge and belief the valuation complies with this

review and audit by the Department and may ultimately be

section and shall set forth in the affidavit or refer to the

disallowed, either in whole or in part. The stated amount of

specific portion of the appraisal setting forth the facts

the tax credit is based solely upon information supplied by

and basis for this knowledge and belief.”

the donor to establish the fair market value of the donation

The original Form LPC-1, its schedules and attachments

on which your credit is based. The value of the donation is

should be sent to the following address:

subject to challenge by federal and state tax authorities.

Virginia Department of Taxation

The Department makes no express or implied warranties that

Tax Credit Unit

any tax benefits will be available to the donor or to anyone

P.O. Box 715

to whom a Land Preservation Tax Credit is transferred or re-

Richmond, VA 23218-0715

transferred. The Department will notify you further only if any

For general assistance call (804) 786-2992.

portion of your credit is disallowed or otherwise adjusted.

Such notification may be issued either before or after you

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Form LPC-1 Instructions, 10/12

Instructions For Virginia Form Lpc-1, Application For A Land Preservation Credit, Virginia Agricultural Best Management Practices For Water Quality

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