LPC-1 Schedule A: Land Preservation Credit - Allocation Schedule and Calculation of Fee (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form LPC-1 Schedule A reports how a Land Preservation Credit is allocated among multiple donors or recipients through a pass-through entity. It lists credit holders and their allocated amounts and calculates any applicable allocation fee.
Who files this form
Use Schedule A to report Land Preservation Credit allocations if you are:
- One of multiple donors, including married spouses when both are on the deed.
- A pass-through entity allocating credits to people or other entities.
A separate Schedule A must also be completed for each additional pass-through entity receiving a credit.
What you'll need
Have the following information ready:
- For a pass-through entity: its name, FEIN and phone number.
- If a Tax Matters Representative has been appointed: the representative’s name and phone number.
- For each credit recipient: name, SSN or FEIN, street address, city, state, ZIP code, entity type, phone number and credit amount.
- The total credit amount allocated and any gifts to subtract when completing the fee calculation.
Enclose additional pages if needed. For allocations to more than 15 people or entities, the form recommends a spreadsheet. Call (804) 786-2992 for the format.
How to file
- Complete Section I if you are a pass-through entity. If you have appointed a Tax Matters Representative, check “yes” and enter the representative’s name and phone number.
- Complete Section II with each recipient’s information and allocated credit amount. Use one line per taxpayer and SSN or FEIN, then enter the total allocated credit.
- For donations made on or before December 31, 2006, complete Section I, if applicable, and Section II. For donations made on or after January 1, 2007, also complete Section III when applicable. Section III is required for pass-through allocations of credits from those later donations.
- In Section III, enter the total allocated credit less any gifts on Line 1. Multiply Line 1 by 0.05 to calculate the fee on Line 2.
The Department recommends paying with a certified check or money order. The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Combining joint donors on one line. Credit is granted to one taxpayer per line per SSN or FEIN.
- Leaving out a receiving pass-through entity’s schedule. A separate Schedule A is required for each additional pass-through entity receiving credit.
- Combining credits from different donations. File a separate Schedule A for credits derived from each donation.
- Overlooking the fee exception for separately listed owners. Multiple owners listed separately on the deed do not owe a fee.
- Paying by personal check without allowing for a delay. Personal checks may delay processing of transfers or allocations.
Questions people ask
Do married spouses need to use this schedule?
Yes, when both spouses are on the deed, the schedule is used to report their credit allocations. Provide each donor’s information separately.
Why does the fee calculation use 5% when the instructions describe a 2% fee?
The 2% fee is based on the appraised value of the donated interest. The credit equals 40% of that value, so the equivalent fee at the credit level is 5% of the credit being transferred or allocated.
Can a pass-through entity qualify for a fee exemption?
Yes. The entity is exempt to the extent it distributes credits to nonresident owners and applies those credits to its pass-through entity withholding tax. Credits distributed to resident owners, or to nonresident owners not subject to that withholding tax, remain subject to the fee.
Who can serve as a Tax Matters Representative?
A pass-through entity may appoint a general partner, member, manager or shareholder. The Tax Commissioner may consult that representative about allocated or transferred credits.