CT-1120 DL: Donation of Land Credit (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
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 2025, and unused credits carried forward to 2026.
Who files this form
Corporations use Form CT-1120DL to claim the Donation of Land tax credit against the Connecticut Corporation Business Tax.
The form states that it is used to claim the credit for donations of open space land and to carry forward and use remaining credits for donations of land for educational use from 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 available to complete the form:
- Corporation name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
- The value of qualifying land donations made in 2025. The donation amount is the land’s use value minus the amount received for it.
- The land’s fair market value at its highest and best use, as determined by a certified real estate appraiser.
- For carryforwards, the prior-year Forms CT-1120DL referenced in Part II and the amounts of credit claimed, previously applied, and applied to 2025.
Part I directs you to enter the calculated credit on Form CT-1120K, Part I-C, Column B.
Common mistakes
- Using the wrong year’s form. Each form is year specific. Use the 2025 form for the 2025 income year.
- Using an ink color other than blue or black. Complete the form in blue or black ink only.
- Stapling the form. The form says not to use staples.
Questions people ask
How much is the credit?
The credit is 50% of the qualifying donation amount. Enter the value of 2025 donations on Part I, Line 1, multiply by 50%, and enter the result on Line 2 and 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?
Yes. The definitions include the value of a discount in a sale of land or an interest in land. For open space donations, the recipient must be the state, a political subdivision of the state, or a nonprofit land conservation organization, and the land must be permanently protected open space or a public water supply source. For educational-use donations, the recipient must be a town, city, borough, school district, or regional school district, for schools and related facilities.
Can unused credit be carried forward or back?
For credits claimed in or after income year 2013, unused credit may be carried forward for 25 succeeding income years. No carryback is allowed. For credits claimed before income year 2013, the carryforward period is 25 succeeding income years for open space land credits and 15 succeeding income years for educational-use land credits.