Gov. Timothy M. Kaine may want to increase the amount of land under conservation easement, but his Department of Taxation isn’t making the job any easier for him.
In April, the tax department sent letters to investors who purchased land conservation tax credits from the Silver Cos., informing them that they could not take the credits. The credits are linked to the Silver Cos.’ Celebrate Virginia project, which set up conservation easements on more than 400 acres along the Rappahannock River. The Silver Cos. qualified for $28 million in credits and sold them at a discount — 50 cents on the dollar — which proved attractive to a lot of investors. The Department gave no explanation for its action.
Now, reports the Free Lance-Star, Craig Bell, a McGuireWoods attorney who represents 341 investors, has filed a formal protest with the Virginia Department of Taxation. There is no legitimate reason for denying the credits, he says.
Someone had better get this straightened out. If I were an investor, I sure wouldn’t invest in conservation easement tax credits — from the Silver Cos. or anyone else — if I thought there were any chance that the Department of Taxation wouldn’t recognize them. Before this is all over, someone is going to look really bad — either the Silver Cos. for selling credits they shouldn’t have, or the Department of Taxation for throwing the tax credit program into turmoil.
