HB449: Income tax, state; land preservation tax credit.

Chief Patron

Del. Lee Ware (R-65)

Status

Bill is Dead

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Summary

Income tax; land preservation tax credits.  Expands the land preservation tax credit by removing the $100,000 annual credit limit that a taxpayer may take for qualified donations of conservation easements and putting a $2.5 million or 50% of the fair market value, whichever is less, cap on each donated easement. However, the credit may exceed $2.5 million, up to 50% of the fair market value of the donated interest if (i) the taxpayer has submitted two qualified appraisals from two different qualified appraisers, and (ii) the Secretary of Natural Resources, who has the sole discretion, has determined that the qualified donation provides exceptional benefit to the Commonwealth by meeting standards adopted by the Virginia Land Conservation Foundation. It also requires the filing of a statement for less-than-fee interest donations that describes how such interest meets the requirements of IRC § 170(h). It also adds, as qualified donations, easements on historic buildings or a complex of historic buildings or a portion of such buildings if the building is listed on the Virginia Landmarks Register, provided there are restrictions on the exterior surfaces of the building or complex of buildings. A fee of 1% of the value of the donated interest, or $5,000, whichever is less, is imposed on any taxpayer who transfers unused tax credits.   View Full Text »