What are the financial benefits of donating a conservation easement?
INCOME TAXES: Potential federal income tax benefits vary with the particulars of each conservation easement. To qualify as a charitable gift, which may be deductible for federal income tax purposes, donation of development rights through a conservation easement must be granted in perpetuity to a qualified conservation organization — such as Maui Coastal Land Trust. The value of the gift, determined by a formal appraisal, is the difference between the fair market value of the property before and after donation of the conservation easement. 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. In general, the maximum allowable deductions arise from conservation easements donated over large tracts of open space in areas where developm
