Donation of Land Tax Credits
Conn. Gen. Stat. §§. 12-217dd and 12-217ff
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- A credit for the donation of open space land (Conn. Gen Stat. §12-217dd); and
- A credit for the donation of land for educational use (Conn. Gen Stat. §12-217ff).
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 Chapter 208 of the Connecticut General Statutes.
Note: Starting with income years beginning on or after January 1, 2013, the tax credit for the donation of land for educational use (Conn. Gen. Stat. §12-217ff) was merged into the tax credit for the donation of open space land (Conn. Gen. Stat. §12-217dd).
Taxpayers that donate open space land or land for educational use in income years beginning on or after January 1, 2013 will be able to claim a tax credit for such donations under Conn. Gen. Stat. §12-217dd.
No credit may be claimed under Conn. Gen. Stat.§12-217ff for any donation made on or after January 1, 2013.
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 and land for educational use.
Carryforward and Carryback Limitations
Tax credits claimed under Conn. Gen. Stat. §12-217dd (including credits claimed for the donation of land for educational use in income years beginning on or after January 1, 2013): The tax credits may be carried forward for a period of 25 successive years until the tax credit is fully taken. No carryback is allowed.
Tax credits claimed under Conn. Gen. Stat. §12-217ff (for the donation of land for educational use in income years that began before January 1, 2013): The tax credits 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
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
Statutory and Regulatory References
Conn. Gen. Stat. §12-217dd, as amended by 2013 Conn. Pub. Acts 232, §8; Conn. Gen. Stat. §12-217ff, as amended by 2013 Conn. Pub. Acts 232, §9.
Last updated February 3, 2014