DRS: Donation of Land Tax Credits 01MAR2012

Donation of Land Tax Credits  

Conn. Gen. Stat. . 12-217dd and 12-217ff

                                                                                


 
Description and Applicable Taxes
Two tax credits are available for the donation of land:
  • A credit for the donation of open space land; and
  • A credit for the donation of land for educational use.

Both tax credits are equal to 50% of the value of any donated land and both credits may be applied against the tax imposed under section 12-217 of the Connecticut General Statutes.

 

 

Definitions

Donation of open space land means the value of any land or interest in the land conveyed without financial consideration, or the value of any discount of the sale price in any sale of land or any interest in land, to the state, a political subdivision of the state, a water company, as defined in section 25-32a, or a nonprofit land conservation organization, where the land is to be permanently preserved as protected open space or used as a public water supply source.

 

Donation of land for educational use means the value of any land or interest in the land conveyed without financial consideration, or the value of any discount of the sale price in any sale of land or interest in land, to any town, city, or borough, whether consolidated or unconsolidated, and any school district or regional school district for the purpose of schools and related facilities.

  

Use value means the fair market value of land at its highest and best use, as determined by a certified real estate appraiser.

 

 

Tax Credit Amount

The tax credit amount available is equal to 50% of any donation of open space land or 50% of any donation of land for educational use.

 

 

Carryforward and Carryback Limitations

The tax credit for the donation of open space land may be carried forward for a period of 25 successive income years until the tax credits is fully taken. No carryback is allowed. The tax credit for the donation of land for educational use may be carried forward for a period of 15 successive income years until the tax credit is fully taken. No carryback is allowed.

 

 

How to Claim the Tax Credit

Complete Form CT-1120DL, Donation of Land Tax Credits, and attach it to Form CT-1120K, Business Tax Credit Summary.

 

 

Where to Get Additional Information

 

Direct inquiries to:

Connecticut Department of Revenue Services

Taxpayer Services Division

25 Sigourney St Ste 2

Hartford CT 06106

1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only), or 860-297-5962 (from anywhere)

860-297-5962

www.ct.gov/DRS

 

 

Statutory and Regulatory References

Conn. Gen. Stat. .12-217dd and 12-217ff

 

 

Last updated March 1, 2012