CT-1120 DL: Donation of Land Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120DL calculates Connecticut’s Donation of Land Tax Credit against the Corporation Business Tax. It reports the value of land donations, the credit applied to 2024, and unused credits carried forward to 2025.
Who files this form
Corporations use Form CT-1120DL to claim the Donation of Open Space Land Tax Credit against the Connecticut Corporation Business Tax. The form also allows corporations to carry forward and use remaining credits for donations of land for educational use in prior income years.
To qualify, the donated land must be used for education, permanently preserved as protected open space, or used as a public water supply source.
What you'll need
Have the following information and applicable forms available:
- Your corporation name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
- The value of qualifying land donations made in 2024. The donation amount is the land’s use value minus any amount received for it.
- The land’s fair market value at its highest and best use, as determined by a certified real estate appraiser.
- Prior-year Forms CT-1120DL and credit amounts needed to complete the carryforward table, if applicable.
- Form CT-1120K, where the credit from Part I, Line 2 is entered in Part I-C, Column B.
Common mistakes
- Using the wrong year’s form. Each form is year specific, so use the 2024 version for 2024.
- Completing the form in an ink color other than blue or black.
- Using staples.
- Leaving shared credits out of Column D. Members included in the 2024 Form CT-1120CU must include credits shared to and used by another member of the combined group.
Questions people ask
How much is the credit?
The credit equals 50% of the qualifying donation amount. Enter the value of 2024 donations on Part I, Line 1, multiply by 50%, and enter the result on Line 2 and on Form CT-1120K, Part I-C, Column B.
How is the donation amount calculated?
Subtract the amount received for the land from its use value. Use value means the land’s fair market value at its highest and best use, as determined by a certified real estate appraiser.
Can a discounted land sale qualify as a donation of open space land?
Yes. The definition includes the discount in a sale of land or an interest in land to the state, a political subdivision of the state, or a nonprofit land conservation organization. The land must be permanently preserved as protected open space or used as a public water supply source.
How long can unused credits be carried forward?
For credits claimed before income year 2013, unused open space land credits may be carried forward for 25 succeeding income years, and unused educational-use land credits for 15 succeeding income years. For credits claimed in or after income year 2013, unused credits may be carried forward for 25 succeeding income years. No carryback is allowed.
Where can I find more information?
The form points to the Guide to Connecticut Business Tax Credits on the Department of Revenue Services website at portal.ct.gov/DRS.