Are there tax benefits from granting a conservation easement?
Conservation easements qualify as charitable deductions from income taxes, if certain IRS rules and criteria are satisfied. To be deductible, an easement must serve conservation purposes by preserving natural habitat, historic sites, unique scenic landscapes, wildlife corridors or connections to other protected parcels, areas of concern for public education or recreation, or open spaces in the vicinity of intense land development. To qualify as a charitable gift, donation of use or development rights through a conservation easement must be granted in perpetuity to a qualified conservation organization. The gift value, determined by a qualified appraiser hired by the landowner, is the difference between the fair market value of the property before and after the easement is donated. If tax reduction is an important consideration, the land trust strongly recommends that the landowner consult with a tax advisor before proceeding with an easement.
