Income Tax Incentives for Land Conservation
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About This Document
For landowners, donating a conservation easement is a way to protect places they love. It’s also a major financial decision. When landowners donate a conservation easement, they give up part of the value of their property — often their family’s biggest asset. Tax incentives offset some of that loss in property value, making conservation a viable option for more landowners.
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The federal conservation tax deduction
In 2015, Congress enacted one of the most powerful conservation measures in decades: the enhanced federal tax incentive for conservation easement donations. The permanent conservation easement tax incentive is an important tool that helps Americans conserve their land voluntarily.
For land trusts across the country, the permanent incentive represents vastly increased opportunities to protect the special places in their widely varied communities.
If you own land with important natural, agricultural or historic resources, donating a conservation easement can be a prudent way to both save the land you love forever and to realize significant federal tax savings.
Download our brochure to learn moreFor the latest information and for guidance on individual properties, please contact your local land trust, which can be located at findalandtrust.org.
State income tax credits for conservation
In addition to the federal tax deduction, 14 states and territories offer some form of tax credit for conservation easement donations. In some states and territories, if a landowner donates an easement but doesn’t owe enough tax to use the full credit, they can sell the remaining credit to another taxpayer, generating immediate income. This is known as a transferable tax credit. In other states and territories, the income tax credit is non-transferable. Learn what sort of credit your state or territory has below:
