Tax Incentives: A Key to Conservation Success State and federal tax
policies have a huge impact on how much land we’re able to protect.
Tax incentives for land conservation offset part of the loss in
property value when a landowner donates an easement, which makes
conservation a viable option for more landowners. Tax incentives for
voluntary land conservation have proven to be hugely successful,
helping land trusts to protect over 50 million acres nationwide.
Federal Income Tax Benefits One of the most significant tax incentives
is the federal income tax deduction, which Congress made permanent in
2015. This powerful tool allows modest-income donors to receive
greater credit for donating a very valuable conservation easement on
property they own. With the enhanced incentive in place, the pace of
conservation exceeds one million acres per year! Estate Tax Benefits
Estate tax incentives are another important consideration for many
landowners — especially farm and ranch families, who can be hard hit
by estate taxes. In some cases, estate taxes force families to
subdivide or sell their land. Estate tax incentives for conservation
create an alternative, which can help to keep land intact, in
production, and in the family. The Alliance helped to create the first
estate tax incentives for conservation and we keep working to improve
these incentives so they benefit more families and help save more
land. State and Local Tax Benefits Sixteen states offers some form of
tax credit for conservation easements, in addition to the federal
income tax credit. In some cases, these state incentives are more
significant than the federal incentives and they can be a major driver
of voluntary land conservation. Sometimes, donating an easement may
reduce a landowner’s property taxes. However, that depends on local
and state laws where they live. The simplest form of property tax
benefit is that a conservation easement usually reduces the value of
the property — which may mean that there’s less property tax to
pay.
