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VA P.D. 08-49 Land Preservation Tax Credit 2008-04-28

What was Virginia's statewide Land Preservation Income Tax Credit cap for calendar year 2008?

Short answer: Virginia set the calendar-year 2008 Land Preservation Income Tax Credit cap at $102,287,000. The Department calculated that the relevant CPI-U average had increased about 2.29% from the statutory 2006 base period, raising the original $100 million cap.

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This page answers the general question as of 2008. Ezel answers yours, under current Virginia tax law, with citations.

Currency note: this ruling is from 2008
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is Virginia Tax Bulletin 08-7, a general historical announcement of the statewide Land Preservation Income Tax Credit cap for calendar year 2008. It is not a taxpayer-specific ruling and does not state the cap for any later year. Confirm current credit limits and procedures directly. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
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Subject

New Cap Amount for the Land Preservation income Tax Credit

Plain-English summary

Virginia increased the statewide Land Preservation Income Tax Credit cap to $102,287,000 for calendar year 2008. House Bill 5019 had established a $100 million annual cap and required inflation adjustments beginning in 2008.

The Department compared the CPI-U average for the 12 months ending August 31, 2007 with the average for the 12 months ending August 31, 2006. It calculated an increase of approximately 2.29%, producing the new 2008 cap.

What this means for you

  • The $102,287,000 figure applied only to credits issued during calendar year 2008.
  • The bulletin announced a statewide aggregate cap, not the amount any one taxpayer could claim.
  • Later years require their own cap and current-law review.

Citations and references

  • House Bill 5019, 2006 Va. Acts, Special Session I, ch. 4.
  • Va. Code § 58.1-512(D)(4)(b).

Source

Original ruling text

TAX BULLETIN 08-7

Virginia Department of Taxation

April 28, 2008

IMPORTANT INFORMATION REGARDING

THE LAND PRESERVATION INCOME TAX CREDIT

NEW CAP AMOUNT FOR THE LAND PRESERVATION INCOME TAX CREDIT

House Bill 5019 (Chapter 4, Special Session I of 2006) made several changes to the Land Preservation Tax Credit. One of these changes established a $100 million cap on the amount of total credits that may be issued by the Department of Taxation (“TAX”) during a calendar year.

In addition, the legislation provided a mechanism by which this cap may be increased because of inflation. Under Va. Code § 58.1-512 D 4b, beginning with calendar year 2008, the $100 million cap must be increased by an amount equal to $100 million multiplied by the percentage by which the consumer price index for all-urban consumers published by the United States Department of Labor (CPI-U) for the 12-month period ending August 31 of the preceding year exceeds the CPI-U for the 12-month period ending August 31, 2006.

New Cap Amount

Using information obtained from United States Bureau of Labor Statistics, TAX compared the CPI-U for the 12-month period ending August 31, 2007 (“second 12-month period”) with the CPI-U for the 12-month period ending August 31, 2006 (“first 12-month period”). Based on these statistics, the average CPI-U for the second 12-month period increased by approximately 2.29% over the average for the first 12-month period. As a result, the cap for the Land Preservation Income Tax Credit will be increased to $102,287,000 for calendar year 2008.

If you have additional questions, please visit our website at http://www.tax.virginia.gov , or contact the Tax Credit Unit at (804) 786-2992.

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