What are the potential tax benefits of Conservation Easements?
• State of Georgia Income Tax Credit: In 2006, House Bill 1107, known as The Conservation Tax Credit Act of 2006, was passed by the General Assembly and signed by Governor Perdue. Donations of land or conservation easements meeting state conservation purposes qualifies donors for a state income tax credit up to $250K (individual), $500K (corporation), or 1M (partnership), and the donor has 10 years to use it. The law provides for a credit on Georgia state income tax of 25% of the value donated for qualifying lands; • Federal Income Tax: For individual landowners, if the donation of the conservation easement meets the IRS requirements, it is deductible for Federal income tax purposes, up to 50% of the donors Adjusted Gross Income (AGI) (or 100% for qualifying ranchers and farmers) over 16 years or until the amount of the donation is used up. Increased limits were enacted in through the 2008 Farm Bill and are valid for deductions made in taxable years between January 1, 2008 and December
