Department of Conservation and Recreation
Conserve. Protect. Enjoy.
Department of Conservation and Recreation
As of Jan. 1, 2007, DCR is responsible for conducting reviews of the conservation value of applications requesting $1 million or more in Virginia’s Land Preservation Tax Credit. This responsibility was given to DCR by the governor and the Virginia General Assembly pursuant to the Land Conservation Incentives Act (Virginia Code § 58.1-511, et seq.). All such donations must meet the conservation value review criteria adopted by the Virginia Land Conservation Foundation Board in November 2006, as amended in August 2008 and March 2009. The criteria establish minimum standards. The director of DCR is charged with verifying the conservation value of these donations to the Department of Taxation before a credit can be issued.
The amount of tax credit that can be claimed by a taxpayer is 40 percent of the fair market value of a land donation. Therefore, to claim $1 million or more, the taxpayer must have made a land donation equal to or greater than $2.5 million ($2.5M x 40% = $1M). Any land transaction claiming less than the $1 million tax credit does not require a DCR review.
The following questions and answers have been compiled to assist future applicants in the development of their tax credit requests.
You need to meet the three following requirements:
For the purposes of the criteria, a riparian area is the 35 feet of land located immediately adjacent to perennial streams, rivers, sinking streams, lakes and wetlands. A vegetated buffer in the riparian area intercepts and absorbs sediments, pesticides, nutrients and fecal bacteria from grazing animals and farm fields before they can run off the land and pollute the water body. Stream-bank stabilization provided by riparian buffer areas can prevent stream-bank erosion and loss of farmland and vegetated buffers also increase biodiversity by providing habitat for wildlife.
Vegetative cover for riparian buffers may include trees, shrubs and warm season grasses. The buffer does not have to include all three, though a mixture of all three has been shown to be most effective at protecting water quality.
Yes, you can mow the buffer area up to three times per calendar year. Within the buffer area you must maintain vegetative cover, as outlined above.
You can do anything in a buffer area that is not specifically prohibited by the conservation easement. Some of the things you can do are: mow the buffer area up to three times a year; plant native trees, shrubs and grasses; control invasive species; maintain existing structures and roads; construct water dependent amenities such as docks; and have access points to the water.
You cannot do things that are specifically prohibited or restricted by the conservation easement. The conservation easement must prohibit construction of new buildings, structures and roads within the buffer, as well as the expansion of any such existing features. Livestock must also be prohibited, though limited designated crossing points are permitted.
A vegetated riparian buffer of at least 100 feet is required for applicants wishing to qualify for the conservation purpose of watershed preservation. Additionally, buffers of 100 or 200 feet may be required to protect natural heritage resources on the property. We also encourage buffers of at least 100 feet in any areas that overlap with the Floodplains and Flooding Resilience or Water Quality Improvement layers of ConserveVirginia, though it is not required. For most other properties, only a 35-foot buffer will be required immediately adjacent to perennial streams, rivers, sinking streams, lakes, ponds with perennial outflow and wetlands that exist on the property. A riparian buffer is not required on an intermittent stream.
The pond would require a vegetated riparian buffer only if it is shown to have water flowing out from it on a perennial basis. If necessary, during our site visit, DCR can evaluate the outflow, and review the National Hydrography Dataset and any documentation provided by the applicant to determine if a vegetated buffer is required.
Documented historic landscapes involving mowed lawns or pastures on historic properties (verified by the Department of Historic Resources) may be maintained as such.
A farm conservation plan is required for land in agricultural production where a landowner is claiming a land preservation tax credit of $1 million or more. A farm conservation plan is prepared by the landowner, the easement holder and either the local office of the Soil and Water Conservation District or the local Natural Resources Conservation Service office. The plan provides a guide for the landowner’s agricultural operations that identifies the best conservation practices for that particular farm. A farm conservation plan provides resource development opportunities over a five- to 10-year period, helping a farmer make short-term decisions that will be compatible with his or her long-term goals. You can learn more on NRCS’s Conservation Planning website.
The plan is prepared by the landowner and the local Soil and Water Conservation District or the local Natural Resources Conservation Service office. DCR suggests that the landowner or the easement holder consider contacting the local office of one of Virginia’s 47 soil and water conservation districts or the local office of the U.S. Department of Agriculture Natural Resources Conservation Service to get started. Visit the Virginia Association of Soil and Water Conservation Districts to find your local district.
One of the benefits of a conservation plan is that it is flexible. As the resources and needs of the agricultural operation change, the conservation plan can be amended to reflect those changes. The plan should be amended if the property or a portion of the property goes out of agricultural production or the type of agricultural production changes.
The Virginia Department of Forestry suggests that the first step toward a healthy and productive woodland is the development of a Forest Stewardship Plan. DOF Area Foresters are available in every county to provide management plans for woodland owners. Forest Stewardship Management Plans are comprehensive plans that help landowners to manage their land for multiple purposes. Forest Management Plans are less comprehensive and focus on information and recommendations to help with forest management decisions on the property. You can learn more about Forest Stewardship Management Plans and Forest Management Plans on DOF’s website.
It is not necessary for a property to remain in agricultural or forestal production. However, land that has been indicated to have conservation value as agricultural or forestal land must be protected by the easement and agricultural or forestal use by future generations must remain a viable option.
To facilitate successful applications for tax credits of $1 million or more (which require a land or easement donation whose value meets or exceeds $2.5 million), DCR recommends applicants complete the optional pre-filing review process. DCR staff will work with the applicant to verify conservation value before recordation of the easement.
The pre-filing review is optional but highly encouraged. It is available upon request to any donor who has submitted documentation that includes the following:
DCR staff will consult with other agencies as needed to ensure that the deed of easement provides appropriate protection for the resources. DCR will then issue a letter outlining its findings. Although review of recorded easements will receive priority handling, requests for pre-filing review will be handled by DCR in the order they are received and every attempt will be made to complete reviews within 90 days.
A landowner’s reliance on the pre-filing review should be predicated on the recording of the easement document in a form consistent with the DCR review.
The landowner has a variety of technical experts available to assist them through this process ranging from local land trust representatives, to attorneys, to tax consultants. DCR will also continue to be available.
ConserveVirginia is a key tool for identifying unprotected lands of the highest conservation value, based on 24 mapped data inputs. The ConserveVirginia map identifies more than 7 million acres in the following categories: Agriculture and Forestry; Cultural & Historic Preservation; Floodplains and Flooding Resilience; Natural Habitat and Ecosystem Diversity; Protected Landscapes Resilience; Scenic Preservation; and Water Quality Improvement. It is not a requirement that properties seeking tax credits intersect with one of these layers, but identifying any layers that intersect your project can help make the case for the property’s conservation value. You can learn more about ConserveVirginia here, find the ConserveVirginia mapping tool here, and see the ConserveVirginia Deed Review Criteria here.
For additional information about DCR’s review of Land Preservation Tax Credit applications, contact:
Land Conservation Specialist Gina DiCicco, at (804) 837-1819 or gina.dicicco@dcr.virginia.gov
or Land Conservation Manager Suzan Bulbulkaya, at (804) 371-5218 or suzan.bulbulkaya@dcr.virginia.gov.
An applicant may also visit the Land Conservation Tax Credit page of DCR’s website.
Rulings issued by the Commissioner of the Virginia Department of Taxation related to the subject of land conservation tax credits may be found on their Laws, Rules, and Decisions page.
Download these questions and answers.
