Virginia House Bill HB2382

Virginia 2025 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25

Caption

Land preservation tax credit; maximum amount increase.

Impact

The proposed changes under HB 2382 would significantly impact state laws related to land conservation, allowing for an increased capacity for tax credits. This change could potentially increase the number of land donations eligible for tax credits and ultimately lead to more land being dedicated to agricultural, forestry, and biodiversity conservation efforts. The annual report by the Department of Conservation and Recreation, aligned with the bill's requirements, is expected to shed light on the effectiveness and outcomes of these donations on Virginia's landscape.

Summary

House Bill 2382 aims to amend the land preservation tax credit in Virginia, specifically modifying Section 58.1-512 of the Code of Virginia. This bill is designed to increase the maximum amount of tax credits that may be issued annually, from $75 million to $100 million, with provisions for annual adjustments based on the Consumer Price Index. The goal of this enhancement is to incentivize more landowners to contribute land for conservation and agricultural purposes by providing more substantial financial benefits through tax credits.

Contention

While supporters argue that increasing the tax credits will promote greater land conservation and management practices, there may be concerns regarding the fiscal implications of these tax credits on state revenue. Additionally, discussions could arise around the accountability measures for ensuring that donated lands are properly maintained for their intended conservation purposes. The integrity of the appraisal process for determining land values for credits is another point of negotiation, particularly concerning potential abuses or inflated valuations.