LPC-2: Notification of Transfer of Land Preservation Credit (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form LPC-2 notifies the Department of Taxation of a transfer of Land Preservation Credit. It reports the current credit holder, credit balance, recipients, amounts transferred, and sale prices, with Schedule A used to allocate credits and calculate any applicable transfe
Who files this form
A current Land Preservation Credit holder who transfers credits must complete a separate Form LPC-2 to report the transfer.
If the credit is transferred to a pass-through entity, an additional Schedule A must be filed to allocate the credit to its owners.
When it's due
For the 2025 version, the form says the credit holder should file LPC-2 within 90 days of the credit transfer, but at least 90 days before filing the annual return, to avoid processing delays.
The Department cannot guarantee that an LPC-1 application received in December will be processed in time to make a transfer that year.
What you'll need
Have the following ready:
- The current credit holder’s legal name, SSN or FEIN, address, and contact information.
- The original credit transaction number, current credit balance, and amount to be distributed.
- Each recipient’s legal name, SSN or FEIN, address, phone number, transfer date, credit amount, sale price, fiscal-filer information, and entity type.
- Pass-through entity and tax matters representative information, if applicable.
- An additional Schedule A if a pass-through entity receives the credit and must allocate it to its owners.
- Payment, if applicable, with the Land Preservation transaction number on the check or money order.
If claiming the designated-beneficiary or intestate-succession fee exemption shown on Schedule A, enclose a death certificate, will, bequest, or other instrument of transfer.
How to file
- Complete the current credit holder information on page 1.
- Sign the declaration in the presence of a notary and complete the notarization.
- Complete Schedule A. For donations made on or before December 31, 2006, complete Sections I, II if applicable, and III. For donations made on or after January 1, 2007, also complete Section IV if applicable.
- Use one taxpayer per line, identified by SSN or FEIN. Enclose additional pages if needed. For transfers or allocations to more than 15 persons or entities, the form recommends a spreadsheet. Call (804) 786-2992 for the format.
- Mail the form and any applicable payment to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 26544
Richmond, VA 23261-6544
Common mistakes
- Transferring a credit before it is issued. For donations made in 2007 and after, you cannot transfer credits until the Department has issued them.
- Assuming credits are automatic. Credits from donations made on or after January 1, 2007, require Department of Taxation review. Some applications also require Department of Conservation and Recreation review and approval.
- Signing without a notary present. The credit holder must sign in the presence of a notary.
- Combining multiple credit holders on one form. Each transferring credit holder needs a separate LPC-2.
- Leaving the transaction number off a payment. Include the Land Preservation transaction number on your check or money order.
- Treating acceptance as approval. Acceptance of LPC-2 does not certify, approve, or validate the transfer or the credit’s valuation.
Questions people ask
Can the Department adjust a credit after the transfer is reported?
Yes. All credits are subject to adjustment by the Department of Taxation upon audit, regardless of when the original donation was made.
Does selling or transferring a credit have income tax consequences?
It may have income tax consequences for both the credit holder and the recipient. The form advises consulting an attorney, a tax professional, or the IRS.
What happens if the recipient is a pass-through entity?
An additional Schedule A must be filed to allocate the credit to the entity’s owners.
Where can I get help with LPC-2?
Call (804) 786-2992 for assistance. You can also call this number for the recommended spreadsheet format when reporting allocations or transfers to more than 15 persons or entities.