DRS: Donation of Land Tax Credits

Donation of Land Tax Credit  

Conn. Gen. Stat. 12-217dd

                                                                                



Description and Applicable Taxes
A tax credit is available for the donation of land for open space or educational use.  The credit is equal to 50% of the value of any donated land and may be applied against the tax imposed under Chapter 208 of the Connecticut General Statutes.
 

Definitions

Donation of open space land means the value of any land or interest in 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 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 and land for educational use.

 

 

Carryforward and Carryback Limitations

 

In general, the tax credit may be carried forward for a period of 25 successive years until the tax credit is fully taken.  No carryback is allowed.

 

Exception: Tax credits claimed for the donation of land for educational use in income years that began before January 1, 2013 may be carried forward for a period of 15 successive income years until the tax credit is fully taken. No carryback is allowed.  (See Conn. Gen. Stat. 12-217ff.)

 

 

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

450 Columbus Boulevard

Hartford CT 06103

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

 

 

Last updated July 1, 2016