Check out the Virginia Business article “Use of land preservation tax credits requires some strategy” authored by partner George Forsythe on June 14, 2011.
The Virginia land preservation tax credit program has proved to be an important catalyst for land conservation in the commonwealth, and it provides a worthwhile planning tool for Virginia taxpayers. The tax-credit program has allowed donors of land and easements for conservation purposes to offset their state income tax liability dollar-for-dollar with Virginia land preservation tax credits and, more important, to sell their unused credits to other Virginia taxpayers for cash.
Because the credits can be used against income tax incurred in the year of donation and carried forward for up to 10 additional years or until consumed, the typical donor generally has retained some of his credit to use against current and future income tax liability and has sold the rest as soon as possible. A relatively quick sale of at least a portion of the credit enables cash-strapped donors to recoup some or all of their expenses incurred in making the donation (legal, appraisal, survey and tax adviser fees just to mention a few).
