LPC-1: Application for a Land Preservation Tax Credit (2024)
Virginia · Virginia Tax · Used for tax years 2024
Form LPC-1 is an application for a Virginia Land Preservation Tax Credit. It reports the applicant’s information, details and appraised value of the donated property or interest in property, the credit amount requested, and the donation’s conservation purposes and public benefits
Who files this form
Form LPC-1 is for applicants requesting a Virginia Land Preservation Tax Credit for a donation of land or an interest in land.
The form lists these applicant types: individual taxpayers, married donors, multiple donors, trusts or estates, pass-through entities, corporations, nonprofits, and other entities. Donation types include fee simple, less-than-fee simple, and facade donations.
For donations made on or after January 1, 2007, the form says you do not qualify if:
- You are a nonprofit holder of easements as defined in the cited Virginia law and hold another conservation easement acquired under the authority specified in the form.
- You have applied for a Historic Rehabilitation Credit on the property or building in the last 5 years.
When it's due
For the tax year 2024 version of Form LPC-1, the filing deadline depends on when the land or interest in land was conveyed:
- Conveyed on or after January 1, 2020: File a complete Form LPC-1 on or before December 31 of the 2nd year following the calendar year of the conveyance.
- Conveyed before January 1, 2020: File a complete Form LPC-1 on or before December 31 of the 3rd year following the calendar year of the conveyance.
To avoid delays when your annual return is processed, the form says you should file within 90 days of the donation, but at least 90 days before filing your annual return. Applications for credits of $1 million or more should be submitted at least 120 days before filing an annual return.
What you'll need
The enclosure checklist lists the following for the Virginia Department of Taxation:
- Original LPC application.
- Recorded deed.
- A copy or CD of the full appraisal.
- IRS Form 8283.
- Signed statement or affidavit from the appraiser.
- Baseline documentation.
For the Department of Conservation & Recreation (DCR), the checklist lists these items for all donations made in 2007 or later:
- A copy of the LPC application.
- IRS Form 8283.
- Recorded deed.
It also lists baseline documentation for DCR for donations of $1 million or more made in 2007 or later.
You will need applicant identification and contact information, property and recording details, appraisal information, the requested credit amount, and conservation information to complete the form. Section V also calls for Schedule C for a fee simple gift to a public or private conservation agency if the application is for $1 million or more.
How to file
- Read the instructions before completing Form LPC-1, as the form directs.
- Complete the applicant, donation, property, credit, and conservation information, along with the applicable fee simple or less-than-fee simple donation section.
- Sign the application in the presence of a notary and complete the notarization.
- Mail the form, enclosures, and payment, if applicable, to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
Also send a copy of the form and the specified enclosures to:
Department of Conservation & Recreation
Tax Credit Program
600 East Main Street, 24th Floor
Richmond, VA 23219
Common mistakes
- Treating receipt as approval. The Department of Taxation's acknowledgment or acceptance does not certify, approve, or validate the donation or credit valuation.
- Waiting too close to filing your annual return. The form recommends advance filing to avoid processing delays, with a longer lead time for credits of $1 million or more.
- Signing before meeting with the notary. The form requires signatures in the notary's presence.
- Using a P.O. box for the property address. Section III requires the property's street address and says not to use a P.O. box.
- Overlooking DCR verification questions. Prior credits involving the parcel, or land formerly part of the same parcel, may require DCR verification under the conditions listed in Section II.
Questions people ask
Does acknowledgment of my application mean the credit is approved?
No. Acknowledgment of receipt does not constitute certification, approval, or validation of the donation or credit valuation.
What if my donation is less-than-fee simple?
Complete Section VI to explain how the donation meets the requirements of Section 170(h) of the United States Internal Revenue Code of 1986, as amended. Enclose additional pages if needed.
Do prior donations involving the property matter?
Yes. For donations made on or after January 1, 2007, the form asks whether you, a family member, or an affiliate received a credit in the past 11 years for a donation on any portion of the parcel. For donations made on or after July 1, 2010, applications for $250,000 or more must also answer a question about credits applied for or issued within the past 3 years for property formerly part of the same parcel. A yes answer calls for the LP number and may require DCR verification.
Where can I get help?
Call (804) 786-2992 for general assistance. For help with Sections IV and V and Schedules B and C, call (804) 371-5218.