Are there tax benefits in donating a conservation easement?
There are two types of potential tax benefits for conservation easements: (1) inheritance tax; and (2) income tax. As with most taxes, the larger the landowner’s net worth, the higher the land value, or the higher his or her income, the larger the tax benefits. The donation of a conservation easement can qualify as a tax-deductible charitable donation for federal income tax purposes. Federal law generally allows a maximum deduction of 30% of your Adjusted Gross Income in any given year through the donation of a conservation easement. However, you can use the 30% deduction for up to six years until the value of the contribution is used up. [The Legislature made recent changes to the length of time over which a deduction may be claimed]. What is deductible is the difference between the value of the land with the easement and its value without the easement; these are determined by an appraiser. To be tax-deductible, the land must provide a public benefit such as: preserving open space inc
