Interest article: Use of land preservation tax credits requires some strategy
Virginia Land Preservation Tax Credit: Program Challenges And Reform
Founded by conservationists, Conservation Partners, LLC supports the ambitious land conservation goals of Governors Kaine and McDonnell. We hope Virginia’s land preservation tax credit program can be further strengthened so that Virginia taxpayers receive maximum benefit for their investment in land conservation, thus preserving our land legacy for generations to come. The PDF document linked here details some of the ways in which the tax credit program is exploited and abused by a small minority of credit claimants, and argues that careful, expert review of deeds of easement, appraisals, and other credit documentation prior to credit registration makes the tax credit program fairer, more effective, and more efficient. Given appropriate audit and enforcement of existing legal standards by tax authorities, market forces should encourage such pre-registration screening by credit transfer agents and others acting as “gatekeepers” in the tax credit market. However, not many of the credits currently claimed each year are subject to such expert review prior to registration, and a required state licensing program for credit transfer agents would foster and accelerate the development of more expert and effective gatekeepers.
Virginia Land Preservation Tax Credit: Potential Elements of an LPC Transfer Agent Licensing Program
This document proposes a number of specific elements that a licensing program for land preservation tax credit transfer agents might include.
Disclaimer: For informational purposes only. Conservation Partners, LLC does not provide legal or tax advice, and nothing herein is to be considered professional advice of any sort. {Full Disclaimer}