Contact:

Ole M. Amundsen III
Visiting Lecturer, Department of City and Regional Planning
Cornell University
Phone: (607) 277-0999
E-mail: oma4@cornell.edu

Gay Mills
Executive Director
Genesee Land Trust
500 East Avenue, Suite 200
Rochester, NY 14607
Phone: (585) 256-2130
E-mail: gmills@geneseelandtrust.org

Rochester, NY - The Upstate New York Chapter of the  American Planning Association has announced that Cornell City and Regional Planning Department’s Genesee Land Trust Conservation Plan has won the 2008 Outstanding Student Project Award for their work with the Genesee Land Trust  in Rochester, NY. The award jury examined projects for their overall quality, originality, transferability, implementation and comprehensive approach to problem solving. The award was presented at the Upstate New York APA conference in Rochester, on October 9th.

During the fall semester of 2007, nine graduate students participated in a client-based workshop taught by visiting lecturer Ole M. Amundsen III with Department of City and Regional Planning (CRP) at Cornell University. The CRP workshops offer technical planning assistance to government agencies and nonprofit organizations while providing students with practical work experience. Workshops bring students out of the class room and into the field. With this project  this was literally true as the Trust has conserved several major farms that students visited during their tour of the region.  In exchange for the real world experience, the client received a high quality product for a fraction of the cost. There have been four workshops hosted by CRP focused on assisting upstate New York land trusts with their planning needs. The workshop was funded in part by a grant from the New York State Conservation Partnership Program, administered by the Land Trust Alliance Northeast Program with support from the State of New York.

The Genesee Land Trust (GLT) is based in the City of Rochester and serves the conservation needs of the residents of the surrounding counties, covering a 1.3 million acre region. As a nonprofit with a small staff and a large service territory, GLT was looking for ways to focus its conservation efforts on the land and landscapes that best match its mission and have the highest resource value. In addition, the greater Rochester region is a prime example of an upstate New York land use phenomenon termed “sprawl without growth” in a 2003 Brookings Institute report, “Sprawl Without Growth: The Upstate Paradox.” This study found that between 1982 and 1997, the urbanized land in the Rochester/Finger Lakes region increased 50,000 acres while the density (population per urbanized acre) declined 14.2 percent.

For this workshop, the Cornell Team drew upon their interdisciplinary backgrounds in planning, landscape architecture, architecture, and public policy to help their client (Genesee Land Trust) tackle the “sprawl with growth phenomenon”.  The Cornell Team placed the GLT territory in context by researching the history, demographics, and natural resources of the region. A comprehensive scenic resource inventory was developed by the Cornell Team to help the land trust document this under valued resource. Using the information from the nature resource and scenic resource inventories, the Cornell Team developed a series suitability models - which are computer aid mapping models, to help decision makers see the overlap of valuable natural resources.  These computer mapping models will be used by the GLT decision makers to evaluate the merits of conservation projects, bring more information to table when projects are reviewed and help the organization become pro-active in approaching willing landowners about conservation opportunities. Finally, the Cornell Team identified methods for measuring success of the planning initiative and made recommendations on financing options.

For final products GLT received an 80-page full-color report, a 30-page technical appendix, PowerPoint slides, four overlay maps, and two posters and CDs with the GIS map layers created for this workshop. According to Gay Mills, GLT Executive Director “This  well-executed plan will serve as a critical tool for guiding the Genesee Land Trust’s GLT’s strategic planning, community outreach, and project implementation for years to come.”

Reference Contact Information

Workshop Websites
http://www.aap.cornell.edu/crp/outreach/workshop.cfm

For Copy of Workshop Report
http://hdl.handle.net/1813/9390

On Wednesday April 16th, 2008 the Land Trust Alliance and New York State Department of Environmental Conservation (DEC) announced $825,000 in Conservation Partnership Program Grants to 40 New York Land Trusts— an unprecedented investment that will help build stronger land trusts, accelerate the pace and quality of land conservation, and strengthen public support for community-based conservation.  More than 50 land trust representatives were on hand for the announcement, which took place in the New York State Capitol.

Funding for this innovative public-private partnership will support 52 grants to 40 local and regional land trusts in more than 30 counties across New York State. 

The Land Trust Alliance thanks Governor Paterson, DEC Commissioner Pete Grannis, Environmental Conservation Committee Co-Chairs Senator Carl Marcellino and Assemblyman Robert Sweeney, and other members of the Legislature for helping the Alliance build this program.  The 2008-09 State budget includes an increase to a record $1.575 million for this land trust grants and technical assistance program.

###

Read full story >>

Contact: Ethan Winter
Land Trust Alliance
518-587-0774

Albany, NY - The Land Trust Alliance joined the New York Department of Environmental Conservation Commissioner Denise Sheehan, Senator Carl Marcellino, Assemblyman Tom DiNapoli, other members of the New York State legislature, and land trust representatives today in announcing $450,000 in grants and technical assistance to 33 land trust organizations across New York State.  The funding represents the fourth round of grants provided by the New York State Conservation Partnership Program (NYSCPP), a pioneering public-private partnership designed to build strong local and regional open space programs and new land conservation partnerships in the state

At today’s announcement, the Land Trust Alliance announced the 2006 New York State Conservation Partnership Program matching grants.  The grants will be matched by $2.25 million in non-state funds and provide funding for 43 land trust projects representing all nine DEC Regions. 

Projects awarded state grants this year include:

• Twenty Conservation Transactions Grants (total funding: $118,500) enabling land trusts to protect 3,931 acres of farmland, wildlife habitat, and community landscapes.  Projects will include ten land protection projects in the Hudson Valley as well as projects in Essex, Jefferson, Livingston, Monroe, Suffolk, Tompkins, St. Lawrence, and Warren counties.  To date, NYSCPP Conservation Transaction Grants have leveraged millions of dollars in private funds to permanently conserve 7,300 acres of open space across New York State.

• Five Conservation Catalyst Grants (total funding: $68,150) and five Collaboration Grants (total funding: $37,000) to launch conservation initiatives and major collaborations amongst community-based trusts in western New York, Westchester County, and New York City.  These investments will result in protection of thousands of acres of prime farmland, key watershed lands, and community-based urban gardens.

• Three Professional Development Grants (total funding: $110,000) to enhance staffing capacity for key land trust functions in organizational leadership, community outreach, land protection, and fundraising.  This year, Genesee Land Trust, Orange County Land Trust, and Winnakee Land Trust are the recipients of these highly competitive matching grants. To date, the Professional Development Grants have leveraged hundreds of thousands of dollars in non-state funding for 13 growing land trusts.  These investments transform understaffed land trusts into stable, strategically-focused organizations that can serve as highly competent partners and agents for land conservation in New York State.

“New York is leading the nation in efforts to conserve open space, and land trusts can play a vital role in protecting the important resources of communities across the State,” Governor George E. Pataki said.  “This grant program, unique in the country, underscores our commitment to working in partnership with non-profit conservation groups and local governments to preserve our natural resources, from farm and forest land, to wetlands, critical environmental areas and outdoor recreational facilities.”

DEC Commissioner Denise Sheehan said, “An investment in preserving open space is an investment in protecting the quality of life for the citizens of New York State.  Under the Governor’s leadership, we are protecting more than 915,000 acres of precious open space and securing a healthy future for New York’s natural landscape.  By partnering with local land trust organizations, we help ensure that communities can provide residents with green spaces, natural areas, and a healthy environment.”

The New York State Conservation Partnership Program, funded through the Environmental Protection Fund, cost-effectively protects open space by leveraging private funding for conservation.  First funded at $250,000 in the 2002-03 budget and funded at $500,000 in the 2005-05 EPF, this program has provided a total of $1.2 million in land conservation and capacity-building grants, leveraging approximately $6 million in private matching funds in the past four years.  Since inception in 2002-2003, the New York State Conservation Partnership Program has awarded 130 competitive grants, helping to protect 7,300 acres of land, including priority lands identified in the New York State Open Space Plan.

State Senator Carl Marcellino (R-Syosset), Chair of the Senate Environmental Conservation Committee said, “Open space preservation in communities across New York State is both environmentally and financially prudent.  A continued partnership between the Land Trust Alliance and the State will continue to yield success stories that further a growing tradition of land conservation.  Working together we will protect diverse and ecologically sound open spaces for future generations to enjoy.”

Assemblyman Tom DiNapoli (D-Great Neck), Chair of the Assembly Environmental Conservation Committee said, “There are still great opportunities to conserve New York State’s open space and agricultural lands, but development pressure is mounting across the state.  The New York State Conservation Partnership Program has proven highly successful in supporting the efforts of land trusts across the state to safeguard these vital natural resources.”

Since 1995, Governor Pataki and the New York State Legislature have committed $13 billion to preserve and protect New York’s environment.  In his 2002 State of the State address, Governor Pataki outlined a goal of preserving an additional one million acres.  The State is on track to meet this ambitious goal through the New York State Conservation Partnership Program and other initiatives included in the $150 million Environmental Protection Fund for 2005-2006.

Lynn Schumann, Northeast Director for Land Trust Alliance applauded the State’s investment in land conservation:  “New York State has boldly challenged the nation to think more creatively about the meaning of public-private partnerships.  By investing a limited amount of State funding in private sector efforts to save land, New York has shown that its citizens will rally to provide the millions of dollars in private matching funds to save the places that define their communities.  Thanks to the grants announced today, New York residents will be able to enjoy 3,900 additional acres of protected farmland, community open space, and new nature preserves.  We are grateful to Governor Pataki, DEC Commissioner Sheehan, and the New York State Legislature for strong and sustained commitment to this program.”

The Conservation Partnership Program advances the goals of New York’s Open Space Plan by making grants to New York land trusts for four purposes:

Conservation Capacity & Excellence Grants provide up to $20,000 to help land enhance their ability to protect and steward land.  The majority of funded projects focus on the implementation of one or more of the Land Trust Standards & Practices, nationally accepted guidelines for the effective and ethical operation of a land trust.

Conservation Catalyst Grants provide up to $30,000 to enable land trusts to launch local and regional land protection initiatives that lead to the conservation of resources specifically identified in New York State’s Open Space Plan, in a local or regional open space plan, or in a local or regional farmland protection plan.

Professional Development Grants provide the seed funding needed to help all-volunteer and small land trusts increase the pace and quality and of their conservation programs.  Grants range from $20,000 to $50,000 and are intended to transform all-volunteer and small, under-staffed land trusts into sustainable, professionally-staffed organizations. 

Conservation Transaction Grants provide up to $20,000 for projects that enable land trusts to protect and steward environmentally significant lands in New York.  There is a particular emphasis on land protection priorities described in the New York State Open Space Plan.  Transaction grants are available to cover costs associated with purchasing or accepting a donation of fee land or a conservation easement, and costs associated with providing for public access on these properties.

All Conservation Partnership Program grants require a match of at least 1:1 in non-state funds.  Grant recipients receive technical assistance from Land Trust Alliance staff, which helps ensure the success of their funded projects.

Founded in 1982 and headquartered in Washington D.C., the Land Trust Alliance works directly with more than 1,200 land trusts nationwide, including 80+ New York land trusts representing 36,000 individual members.  Working with state and local governments, local, regional and national land trusts have protected over 990,000 acres of land in New York State and more than 34 million acres nationwide.

For additional information about the Land Trust Alliance and New York Conservation Partnership Program, please go to www.LTA.org or contact Ethan Winter in the Land Trust Alliance Northeast Program Office in Saratoga Springs, NY at (518) 587-0774.

NEW YORK STATE CONSERVATION PARTNERSHIP PROGRAM 2006 GRANT AWARDS
(View Detailed Summary, PDF)

• Conservation Capacity & Excellence Grant Awards: $103,300 (15 grants)
• Conservation Catalyst Grant Awards: $968,150 (5 grants)
• Professional Development Grant Awards: $110,000 (3 grants)
• Conservation Transaction Grant Awards: $118,550 (20 grants)
• Technical Assistance for New York Land Trusts: $50,000
• Program Administration (Land Trust Alliance): $50,000

Contact:
Ethan Winter
Land Trust Alliance
(518) 587-0774

Maureen Wren
New York State Department of Environmental Conservation
(518) 402-8000

The Funds Strengthen Community-Based Land Conservation Across New York

Albany, NY - The New York State Department of Environmental Conservation (DEC) and the Land Trust Alliance (Alliance), a not-for-profit land conservation organization, announce their seventh annual round of competitive grants for local land trusts under the New York State Conservation Partnership Program.

Approximately $1.4 million will be awarded in early 2009 to New York land trusts, enabling these local organizations to strengthen land conservation and public outreach programs, build community partnerships and implement best business practices. (Local land trusts, including those that are not a member of the Land Trust Alliance, are eligible for grant funding.) The Conservation Partnership Program is a cost-effective model for leveraging public and private funding for land trusts and their efforts to advance New York's communities' conservation goals as part of the Open Space Plan and to protect New York's clean air, water and special places.

"Now more than ever, land trusts play a vital role in ensuring that New York's communities are healthy places to live, work and play," DEC Commissioner Pete Grannis said. "For its seventh year, the Conservation Partnership Program will help enable the cooperative efforts of land trusts and state and local governments to achieve DEC's goal of re-connecting New Yorkers to nature and helping communities create new public access to natural areas."

Established in 2002 and funded through the Environmental Protection Fund (EPF), the Conservation Partnership Program is administered by the Alliance in coordination with DEC. Over the last six years, the Alliance has received a total of $3 million in EPF appropriations for re-grants and technical assistance, investing in over 200 projects with 64 different land trusts working in communities from Harlem to the Adirondacks. This pioneering initiative has leveraged millions of dollars in additional conservation funding and helped communities permanently conserve more than 10,000 acres of environmentally-significant land across New York.

"This program represents an exciting public-private partnership that demonstrates how communities can dramatically accelerate the pace and quality of local conservation efforts," said Rand Wentworth, President of the Land Trust Alliance. "Land trusts provide for long-term land stewardship in communities, connecting children and families to the land and providing outdoor recreational opportunities close to home. We are proud to partner with DEC, and thank the State of New York for its leadership and investment in New York's land trust community."

###

About the Land Trust Alliance

The Alliance is a national conservation group that works to save the places people love by strengthening land conservation throughout America. It works to increase the pace and quality of conservation by advocating favorable tax policies, training land trusts in best practices, and working to ensure the permanence of conservation in the face of continuing threats.  2007 marked the 25th anniversary of the Alliance, and during this time its members have permanently conserved over 36 million acres across the country. The New York State Conservation Partnership Program is based out of the Alliance's Northeast office in Saratoga Springs, NY.

For more information about the New York State Conservation Partnership Program, and to download application forms for the 2008-09 land trust grants, please visit the Land Trust Alliance's website at www.landtrustalliance.org, or contact Ethan Winter, the Alliance's New York Conservation Manager, at (518) 587-0774.

Click here to access more information on the New York State Conservation Partnership Program including 2008-09 grant applications, summaries of previously funded projects, and details on the history of the Conservation Partnership Program.

The Hicks v. Dowd case that NPR featured is complicated. The nuances of the case and its implications cannot fit into a single NPR radio piece. The Wyoming Law Review will publish a lengthy analysis of the case this summer.  See: http://uwadmnweb.uwyo.edu/law/Student_life/lawreview.asp.

Two cases about conservation easement donations to a public agency:

• Wyoming Easement Extinguishment Case (Hicks v. Dowd) | Hicks v. Dowd Facts
• Walter v. Otero County Land Trust Facts

The land conservation community does not want to let stand the impression that conservation easements are transitory, nor that land trusts lightly terminate perpetual conservation easements or dispose of fee-owned conservation land for development. The Alliance has taken several steps to explain and address this misconception and related issues:

Land Trust Alliance Initiatives to Ensure Permanence

The Alliance is aware of and shares your concern about the potential negative impact of this NPR coverage. The alliance is helping to create good case law, educate attorneys, collect useful legal materials and provide tools to land trusts. These steps are intended to assist the land trust community in making all conservation easements permanent. The Alliance is also working to help all land trusts be strong and effective through Land Trust Standards and Practices, Rally: the National Land Conservation Conference, The Learning Center, the Standards and Practices Curriculum, and the Land Trust Accreditation Commission, an independent program of the Land Trust Alliance.

The best way to avoid legal challenges is to prevent them. The Alliance's training courses are building the knowledge of land trust practitioners, helping them draft strong legal documents and implement sound easement stewardship.

Since August 2007, the Conservation Defense Initiative launched the Network and initiated regular teleconference and regional conference meetings to facilitate information sharing and problem solving among experienced conservation leaders across the country. The online forum allows Network members to address issues rapidly. The Alliance also established the Conservation Defense Fund, for use by the Alliance to intervene in precedent-setting cases, usually by filing a friend of the court brief. Several large law firms around the country have volunteered their services to the Fund to assist with conservation permanence.

Also underway is an investigation of the feasibility of conservation defense insurance so that all land trusts can have access to money and resources to uphold conservation permanence. The Alliance hopes by Rally to report to members about the potential feasibility of such insurance, including proposed policy coverage, premiums, deductibles, claims, review and underwriting standards.

Finally, the Alliance increased its capacity to assist land trusts with enforcement and defense issues, dissemination and analysis of new case law, and guidance in addressing IRS concerns.

Addressing Public Perception and Media Relations

We all know that what is legally true is rarely accepted or appreciated by the general public, especially if the general public hears snippets of news articles while commuting to work or getting the kids off to school. So the Alliance is taking proactive steps on behalf of the land trust community to increase the public's conviction that conservation easements held by knowledgeable, publicly accountable land trusts are indeed permanent.

Here is what the Alliance is doing:

• Contacting NPR to secure placement for a follow-up piece to the March 11 story that better reflects the commitment to easement permanence of nonprofit land trusts
  
  
• Developing a statement regarding conservation permanence, which we will submit for placement on NPR's website
  
  
• Providing spokespersons to NPR who can address the positive message that strong land trusts keep easements permanent
  
  
• Developing further talking points for the land trust community, as needed
  
  
• Informing our members and the professional community about Alliance initiatives to support conservation permanence and the facts of cases such as Hicks v. Dowd

The Alliance suggests to members that, in responding to this NPR story or any other piece, remember the following:

• Do not allow yourself to get pulled into the negative question: "Why aren't easements permanent when they are supposed to be?" Instead focus on the positive message: "Strong land trusts and conservation easements are essential to my community." Remember the old adage: answer the question you wished they had asked, not the one they asked.
  
  
• The bottom line is that our best message is about the WHY of conservation and the WHO that benefit, not the HOW it was done or WHERE or even WHEN.
  
  
• Always remember to talk about your land trust, the good work you are doing and the impact on your community.

Here are some themes to consider and echo in your own messaging:

• Strong land trusts are critical to conserving land in communities across America and conservation easements are one of the best ways to do so.
  
  
• Land trusts have adopted and follow a set of professional standards and practices that help ensure their sound operation and the permanent protection of land. Some government holders also follow these standards, but government holders are not required to the same rules as land trusts.
  
  
• Conservation easements have helped thousands of farmers and ranchers keep their land in agricultural production and have helped communities protect the forests, clean water, scenic views and natural and historic areas that are important to their quality of life.
  
  
• Let me tell you a story about what a difference conservation has made to the people of my community...
  
  
• Conservation easements work because they allow the landowner to stay on the land, they restrict future inappropriate development and they are drafted as legally enforceable documents that protect the natural features or traditional uses of the land.
  
  
• The best way for landowners to permanently conserve their land is to work closely with an established nonprofit land trust in their community -- one that knows and follows established standards for keeping land permanently protected.

We cannot control what NPR may or may not run in response, but we are requesting a follow-up story and will keep you informed of progress. Also, please let us know if you see any local or regional media coverage that may piggyback on the NPR story. Keep in mind the advice to not perpetuate a story by responding too fervently or too frequently to it.

Please let us know if you see any local or regional media coverage that "piggybacks" on the NPR story. We hope this is helpful, and if you have feedback please contact Jim Wyerman, Director of Communications & Development at 202-638-4725 x 310 or communications@lta.org.

Addressing Policy Issues

Separate from the narrow legal fact that Hicks v. Dowd affects only government-held conservation easements is the larger impact that the case has had, and will continue to have, on policy development. This impact is driven both by public perception and by IRS concerns about conservation permanence.

Despite the limited facts in Hicks v. Dowd, the case is contributing significantly to the discussion about the applicability of the charitable trust doctrine to all conservation easements. It may also drive changes in the tax law to apply the same penalties and reporting requirements to government-affiliated land trusts as are currently applicable to publicly-supported land trusts. Attorney General intervention in conservation easement cases has been rare to date. Experts disagree about the advisability and efficacy of such intervention. For more information about the charitable trust doctrine, read the article by Nancy McLaughlin. See also, the Land Trust Alliance research report entitled "Amending Conservation Easements: Evolving Practices and Legal Principles," from August 2007. It can be found on The Learning Center. You will need to login in, click on Library and search by the report title.

Ultimately, the applicability of the charitable trust doctrine and the involvement of Attorneys General are questions of state law.

This debate also supports the need for additional outreach by the Alliance and the land trust community to all government easement holders. Alliance staff is working closely with federal government holders, and some state holders to help them better prepare for conservation permanence.

Addressing Practice Issues

Hicks v. Dowd illustrates the problems with groups accepting conservation easements that do not have the knowledge, resources or resolve to steward them. Full implementation of Land Trust Standards and Practices, as applicable to each individual conservation organization, is one way to ensure conservation permanence. Land trusts can minimize risks of conflict with careful land protection criteria, strategic conservation planning, appropriate evaluation of conservation options, thorough baseline documentation of conservation easement-protected land, annual visits and good communication with landowners. The purposeful protection of land and strategically directed conservation also will help prevent future challenges.

The rapid increase of land protected by private land trusts through conservation easements makes it likely that the proposed termination and modification of conservation easements will become more frequent. This is particularly true as conservation easements age and as ownership of conserved land changes. Conservation easement holders can address these issues by adopting and implementing written policies on conservation easement amendments, termination, condemnation and enforcement.

Nancy McLaughlin aptly observed that "as the cache of conservation easements in this country continues to grow, and as those easements, the vast majority of which are perpetual, begin to age, it will become increasingly important to determine whether, when and how easements that no longer accomplish their intended conservation purposes can be modified or terminated." (Nancy A. McLaughlin, "Rethinking the Perpetual Nature of Conservation Easements," 29 Harvard Environmental Law Review, 422, 424 (2005) at www.law.harvard.edu/students/orgs/elr/ and at http:// learningcenter.lta.org/objects/view.acs?object_id=17089.

Equally important is building sufficient skills in all land trusts so that termination can be avoided. Many tools exist and more can be created, that allow issues such as those raised in Hicks v. Dowd and in Walter v. Otero County Land Trust to be addressed without easement termination while still preserving the landowner relationship. Land trusts are encouraged to conduct annual visits to conserved land, build trusting landowner relationships, especially with successor owners, provide landowners access to conservation education and resources, and keep sufficient records to uphold an easement's conservation purposes.

Exercising due diligence prior to completing a conservation transaction is also critical. The due diligence required to satisfy the IRS requirements for tax-deductible easements and that required to ensure permanence and ease of stewardship often are different and require different practices. Land trusts can learn from Hicks v. Dowd that a prudent course of action includes a conservation with owners of any severed mineral interest, even if the landowner has obtained the "remoteness letter" required by the IRS. In a best-case scenario, the mineral rights holder may agree to extinguish its rights or subordinate them to the conservation easement. At a minimum, this conversation serves to notify the mineral estate holder of the conservation easement and provides an opportunity for the land trust and landowner to convince the holder to limit its area of exploration or its extraction activities in such a way as to minimize the adverse impact on the conservation resources.

A close reading of the Treasury Regulations at section 1.170A-14(g)(4) and the examples cited indicate that further steps for severed oil and gas interests may be required in order for the easement to qualify as a charitable deduction. While limited, localized disturbance that does not interfere with the overall conservation purpose is permitted, any extraction activities that are "irremediably destructive of significant conservation interests" must be prohibited. To be bound by the terms of the conservation easement, the owner of any minerals whose claim predates the easement must subordinate his or her interest in the minerals to the easement. Land trusts must take additional steps to minimize the adverse impact of all pre-existing legal rights on conserved land to uphold conservation permanence.

Attorneys can also help with better drafting of conservation easements, anticipating potential conflicts and resolving them beforehand. Attorneys and land trusts can help grantors and successor landowners understand the full implications of a permanent conservation easement before they either place an easement on their land or buy conserved property.

In addition, for those unanticipated dilemmas that often occur with a permanent conservation easement, there is a critical middle ground in response to conflicts, such as those shown in the two cases above. Experienced land trusts understand that conflict resolution does not have to result in either land trust capitulation or aggrieved landowners. There can be a satisfactory solution for all that upholds conservation easement purposes, complies with the law and addresses landowner concerns. Knowing how to balance those issues and being expert in addressing problems and finding solutions are the hallmarks of effective conservation organizations.

When voluntary solutions fail, land trusts and their attorneys also must be prepared to defend easements in court if necessary. For many land trusts without sufficient funds for defending easements, the cost of a single lawsuit could threaten the land trust's survival. Congress and the IRS have both raised questions about the ability of land trusts to defend their easements. Currently, land trusts have no conservation defense insurance available. If a land trust fails to properly defend an easement, it could result in bad case law that may jeopardize easements held by other organizations across the United States. To address these threats, it is essential for all conservation easement holders to exercise leadership to ensure the permanence and quality of land conservation. Implementing Land Trust Standards and Practices is one method to accomplish this goal. Working with the Alliance on collective conservation defense in another.

It is worth noting that several government agencies have adopted Land Trust Standards and Practices and are managing conservation easements and landowner requests responsibly and effectively. These groups are to be applauded and used as models for government conservation everywhere on the thousands of conservation easements and fee-owned land under the care of local, state, and federal government.

Conclusion

The land trust community and the Alliance are working to make all land trusts strong and all conservation permanent. As the work of land trusts becomes more visible, however, new threats to conservation easements and fee-owned properties will occur. These threats may come from successor landowners, neighbors or others in the community who do not share the conservation vision of the original grantor, or from lack of public confidence in the permanence of conservation.

The best way to prevent and prepare for challenges to conservation easements and land trusts owned land is to implement good practices, as defined in Land Trust Standards and Practices. How a land trust responds to a potential violation or to a landowner request, especially for amendments or termination of a conservation easement, affects the enforceability of that easement and potentially all other easements. It also affects the public trust and confidence in conservation as a whole as demonstrated by the NPR feature on the Wyoming easement termination.

Conservation easements are new legal tools, and the enabling statutes have not been in place long enough for the development of a full body of case law. As the first cases make their way through state court systems, they are likely to be cases of first impression. States without case law on the topic will look to those states to inform their decisions. It is important that land trusts work together to defend conservation permanence and build a strong body of favorable case law in every state.

Conservation organizations concerned with the credibility and sustainability of conservation, therefore, may want to do everything possible to ensure good practices and sound policies and implement their programs to uphold conservation permanence.

The Hicks v. Dowd case that NPR featured is complicated. The nuances of the case and its implications cannot fit into a single NPR radio piece. The Wyoming Law Review will publish a lengthy analysis of the case this summer.  See: http://uwadmnweb.uwyo.edu/law/Student_life/lawreview.asp.

Two cases about conservation easement donations to a public agency:

• Wyoming Easement Extinguishment Case (Hicks v. Dowd) | Hicks v. Dowd Facts
• Walter v. Otero County Land Trust Facts

The land conservation community does not want to let stand the impression that conservation easements are transitory, nor that land trusts lightly terminate perpetual conservation easements or dispose of fee-owned conservation land for development. The Alliance has taken several steps to explain and address this misconception and related issues:

Land Trust Alliance Initiatives to Ensure Permanence

The Alliance is aware of and shares your concern about the potential negative impact of this NPR coverage. The alliance is helping to create good case law, educate attorneys, collect useful legal materials and provide tools to land trusts. These steps are intended to assist the land trust community in making all conservation easements permanent. The Alliance is also working to help all land trusts be strong and effective through Land Trust Standards and Practices, Rally: the National Land Conservation Conference, The Learning Center, the Standards and Practices Curriculum, and the Land Trust Accreditation Commission, an independent program of the Land Trust Alliance.

The best way to avoid legal challenges is to prevent them. The Alliance's training courses are building the knowledge of land trust practitioners, helping them draft strong legal documents and implement sound easement stewardship.

Since August 2007, the Conservation Defense Initiative launched the Network and initiated regular teleconference and regional conference meetings to facilitate information sharing and problem solving among experienced conservation leaders across the country. The online forum allows Network members to address issues rapidly. The Alliance also established the Conservation Defense Fund, for use by the Alliance to intervene in precedent-setting cases, usually by filing a friend of the court brief. Several large law firms around the country have volunteered their services to the Fund to assist with conservation permanence.

Also underway is an investigation of the feasibility of conservation defense insurance so that all land trusts can have access to money and resources to uphold conservation permanence. The Alliance hopes by Rally to report to members about the potential feasibility of such insurance, including proposed policy coverage, premiums, deductibles, claims, review and underwriting standards.

Finally, the Alliance increased its capacity to assist land trusts with enforcement and defense issues, dissemination and analysis of new case law, and guidance in addressing IRS concerns.

Addressing Public Perception and Media Relations

We all know that what is legally true is rarely accepted or appreciated by the general public, especially if the general public hears snippets of news articles while commuting to work or getting the kids off to school. So the Alliance is taking proactive steps on behalf of the land trust community to increase the public's conviction that conservation easements held by knowledgeable, publicly accountable land trusts are indeed permanent.

Here is what the Alliance is doing:

• Contacting NPR to secure placement for a follow-up piece to the March 11 story that better reflects the commitment to easement permanence of nonprofit land trusts
  
  
• Developing a statement regarding conservation permanence, which we will submit for placement on NPR's website
  
  
• Providing spokespersons to NPR who can address the positive message that strong land trusts keep easements permanent
  
  
• Developing further talking points for the land trust community, as needed
  
  
• Informing our members and the professional community about Alliance initiatives to support conservation permanence and the facts of cases such as Hicks v. Dowd

The Alliance suggests to members that, in responding to this NPR story or any other piece, remember the following:

• Do not allow yourself to get pulled into the negative question: "Why aren't easements permanent when they are supposed to be?" Instead focus on the positive message: "Strong land trusts and conservation easements are essential to my community." Remember the old adage: answer the question you wished they had asked, not the one they asked.
  
  
• The bottom line is that our best message is about the WHY of conservation and the WHO that benefit, not the HOW it was done or WHERE or even WHEN.
  
  
• Always remember to talk about your land trust, the good work you are doing and the impact on your community.

Here are some themes to consider and echo in your own messaging:

• Strong land trusts are critical to conserving land in communities across America and conservation easements are one of the best ways to do so.
  
  
• Land trusts have adopted and follow a set of professional standards and practices that help ensure their sound operation and the permanent protection of land. Some government holders also follow these standards, but government holders are not required to the same rules as land trusts.
  
  
• Conservation easements have helped thousands of farmers and ranchers keep their land in agricultural production and have helped communities protect the forests, clean water, scenic views and natural and historic areas that are important to their quality of life.
  
  
• Let me tell you a story about what a difference conservation has made to the people of my community...
  
  
• Conservation easements work because they allow the landowner to stay on the land, they restrict future inappropriate development and they are drafted as legally enforceable documents that protect the natural features or traditional uses of the land.
  
  
• The best way for landowners to permanently conserve their land is to work closely with an established nonprofit land trust in their community -- one that knows and follows established standards for keeping land permanently protected.

We cannot control what NPR may or may not run in response, but we are requesting a follow-up story and will keep you informed of progress. Also, please let us know if you see any local or regional media coverage that may piggyback on the NPR story. Keep in mind the advice to not perpetuate a story by responding too fervently or too frequently to it.

Please let us know if you see any local or regional media coverage that "piggybacks" on the NPR story. We hope this is helpful, and if you have feedback please contact Jim Wyerman, Director of Communications & Development at 202-638-4725 x 310 or communications@lta.org.

Addressing Policy Issues

Separate from the narrow legal fact that Hicks v. Dowd affects only government-held conservation easements is the larger impact that the case has had, and will continue to have, on policy development. This impact is driven both by public perception and by IRS concerns about conservation permanence.

Despite the limited facts in Hicks v. Dowd, the case is contributing significantly to the discussion about the applicability of the charitable trust doctrine to all conservation easements. It may also drive changes in the tax law to apply the same penalties and reporting requirements to government-affiliated land trusts as are currently applicable to publicly-supported land trusts. Attorney General intervention in conservation easement cases has been rare to date. Experts disagree about the advisability and efficacy of such intervention. For more information about the charitable trust doctrine, read the article by Nancy McLaughlin. See also, the Land Trust Alliance research report entitled "Amending Conservation Easements: Evolving Practices and Legal Principles," from August 2007. It can be found on The Learning Center. You will need to login in, click on Library and search by the report title.

Ultimately, the applicability of the charitable trust doctrine and the involvement of Attorneys General are questions of state law.

This debate also supports the need for additional outreach by the Alliance and the land trust community to all government easement holders. Alliance staff is working closely with federal government holders, and some state holders to help them better prepare for conservation permanence.

Addressing Practice Issues

Hicks v. Dowd illustrates the problems with groups accepting conservation easements that do not have the knowledge, resources or resolve to steward them. Full implementation of Land Trust Standards and Practices, as applicable to each individual conservation organization, is one way to ensure conservation permanence. Land trusts can minimize risks of conflict with careful land protection criteria, strategic conservation planning, appropriate evaluation of conservation options, thorough baseline documentation of conservation easement-protected land, annual visits and good communication with landowners. The purposeful protection of land and strategically directed conservation also will help prevent future challenges.

The rapid increase of land protected by private land trusts through conservation easements makes it likely that the proposed termination and modification of conservation easements will become more frequent. This is particularly true as conservation easements age and as ownership of conserved land changes. Conservation easement holders can address these issues by adopting and implementing written policies on conservation easement amendments, termination, condemnation and enforcement.

Nancy McLaughlin aptly observed that "as the cache of conservation easements in this country continues to grow, and as those easements, the vast majority of which are perpetual, begin to age, it will become increasingly important to determine whether, when and how easements that no longer accomplish their intended conservation purposes can be modified or terminated." (Nancy A. McLaughlin, "Rethinking the Perpetual Nature of Conservation Easements," 29 Harvard Environmental Law Review, 422, 424 (2005) at www.law.harvard.edu/students/orgs/elr/ and at http:// learningcenter.lta.org/objects/view.acs?object_id=17089.

Equally important is building sufficient skills in all land trusts so that termination can be avoided. Many tools exist and more can be created, that allow issues such as those raised in Hicks v. Dowd and in Walter v. Otero County Land Trust to be addressed without easement termination while still preserving the landowner relationship. Land trusts are encouraged to conduct annual visits to conserved land, build trusting landowner relationships, especially with successor owners, provide landowners access to conservation education and resources, and keep sufficient records to uphold an easement's conservation purposes.

Exercising due diligence prior to completing a conservation transaction is also critical. The due diligence required to satisfy the IRS requirements for tax-deductible easements and that required to ensure permanence and ease of stewardship often are different and require different practices. Land trusts can learn from Hicks v. Dowd that a prudent course of action includes a conservation with owners of any severed mineral interest, even if the landowner has obtained the "remoteness letter" required by the IRS. In a best-case scenario, the mineral rights holder may agree to extinguish its rights or subordinate them to the conservation easement. At a minimum, this conversation serves to notify the mineral estate holder of the conservation easement and provides an opportunity for the land trust and landowner to convince the holder to limit its area of exploration or its extraction activities in such a way as to minimize the adverse impact on the conservation resources.

A close reading of the Treasury Regulations at section 1.170A-14(g)(4) and the examples cited indicate that further steps for severed oil and gas interests may be required in order for the easement to qualify as a charitable deduction. While limited, localized disturbance that does not interfere with the overall conservation purpose is permitted, any extraction activities that are "irremediably destructive of significant conservation interests" must be prohibited. To be bound by the terms of the conservation easement, the owner of any minerals whose claim predates the easement must subordinate his or her interest in the minerals to the easement. Land trusts must take additional steps to minimize the adverse impact of all pre-existing legal rights on conserved land to uphold conservation permanence.

Attorneys can also help with better drafting of conservation easements, anticipating potential conflicts and resolving them beforehand. Attorneys and land trusts can help grantors and successor landowners understand the full implications of a permanent conservation easement before they either place an easement on their land or buy conserved property.

In addition, for those unanticipated dilemmas that often occur with a permanent conservation easement, there is a critical middle ground in response to conflicts, such as those shown in the two cases above. Experienced land trusts understand that conflict resolution does not have to result in either land trust capitulation or aggrieved landowners. There can be a satisfactory solution for all that upholds conservation easement purposes, complies with the law and addresses landowner concerns. Knowing how to balance those issues and being expert in addressing problems and finding solutions are the hallmarks of effective conservation organizations.

When voluntary solutions fail, land trusts and their attorneys also must be prepared to defend easements in court if necessary. For many land trusts without sufficient funds for defending easements, the cost of a single lawsuit could threaten the land trust's survival. Congress and the IRS have both raised questions about the ability of land trusts to defend their easements. Currently, land trusts have no conservation defense insurance available. If a land trust fails to properly defend an easement, it could result in bad case law that may jeopardize easements held by other organizations across the United States. To address these threats, it is essential for all conservation easement holders to exercise leadership to ensure the permanence and quality of land conservation. Implementing Land Trust Standards and Practices is one method to accomplish this goal. Working with the Alliance on collective conservation defense in another.

It is worth noting that several government agencies have adopted Land Trust Standards and Practices and are managing conservation easements and landowner requests responsibly and effectively. These groups are to be applauded and used as models for government conservation everywhere on the thousands of conservation easements and fee-owned land under the care of local, state, and federal government.

Conclusion

The land trust community and the Alliance are working to make all land trusts strong and all conservation permanent. As the work of land trusts becomes more visible, however, new threats to conservation easements and fee-owned properties will occur. These threats may come from successor landowners, neighbors or others in the community who do not share the conservation vision of the original grantor, or from lack of public confidence in the permanence of conservation.

The best way to prevent and prepare for challenges to conservation easements and land trusts owned land is to implement good practices, as defined in Land Trust Standards and Practices. How a land trust responds to a potential violation or to a landowner request, especially for amendments or termination of a conservation easement, affects the enforceability of that easement and potentially all other easements. It also affects the public trust and confidence in conservation as a whole as demonstrated by the NPR feature on the Wyoming easement termination.

Conservation easements are new legal tools, and the enabling statutes have not been in place long enough for the development of a full body of case law. As the first cases make their way through state court systems, they are likely to be cases of first impression. States without case law on the topic will look to those states to inform their decisions. It is important that land trusts work together to defend conservation permanence and build a strong body of favorable case law in every state.

Conservation organizations concerned with the credibility and sustainability of conservation, therefore, may want to do everything possible to ensure good practices and sound policies and implement their programs to uphold conservation permanence.

The seven Northeast states of New England and New York are the birthplace of land conservation in this country. Home to 35% of the country’s nearly 1,700 land trusts, the Northeast represents great tradition and accomplishment among land trusts of all sizes in the region. By 2005 national, local, and state conservation groups saved 8.47 million acres in the Northeast, 12.13% of the area’s total land mass.

Southern New England is dominated by small, single-town land trusts while most of Northern New England and New York contains regional land trusts working in one or more counties or watersheds, with both Vermont and Maine having large statewide land conservation organizations having a significant impact.

Challenges

• Heavy development pressures and sprawl
• impacts from climate change
• rising land prices
• inconsistent political support
• few large tracts remaining
• the fear of legal challenges to permanently conserved land

All of these challenges are threatening the pace at which meaningful conservation can be accomplished.  With many small, all-volunteer land trusts throughout the region, such obstacles can seem daunting.

Hope

Heightened public awareness of the need for conservation is enabling significant advances in conservation under these challenging circumstances.  Renewed interest in farmland protection catalyzed by “Eat Local” initiatives and community supported agriculture, an increased understanding of the value and civic role of urban green spaces and community gardens, growing interest and commitment in “smart growth” at state and local levels and a recognition that conserved land can potentially mitigate climate change is making land conservation a priority in many communities.

The most powerful state incentives for conservation are the transferable tax credits available in Colorado, Georgia, New Mexico, South Carolina and Virginia. Such credits can be sold to an individual or corporation with high tax liability, generating immediate income for the donor.  Arkansas, California, Connecticut, Delaware, Iowa, Maryland, Massachusetts, Mississippi, New York, and North Carolina offer some form of non-transferable income tax credit.  All but AR, CO, MD, MS and NY apply to some fee-simple land donations as well as conservation easements.

Each state's program is unique, and qualifying for a federal tax benefit does not automatically qualify a donor for a state benefit. Basic information on the existing state tax credit programs can be found below. You may also find this 2004 chart comparing ten state tax credits a useful resource, although some programs have changed.

The list of states with tax incentives is expanding - the Arkansas, Florida, Iowa and Massachusetts incentives described below were added over the past few years. We recently worked with the National Assembly of Sportsmen's Caucuses to develop and promote an issue brief that seeks to inspire new state tax credits. The latest state policy updates, including tax incentives are covered on our state funding page.

Local, State and Federal Incentives for Conservation Easements

Former South Carolina Director of Revenue, Burnet Maybank, has published an excellent resource on tax incentives for conservation. It focuses on South Carolina law, but will be useful to anyone interested in conservation tax incentives.(posted 7/21/2006) View the PDF (2.59 MB)

If you have information on a pending credit, or would like to update the information below, please e-mail policy@lta.org.

Arkansas | California | Colorado | Connecticut | Delaware | Florida | Georgia | Iowa | Maryland | Massachusetts | Mississippi | New Mexico | New York | North Carolina | South Carolina | Virginia

Arkansas

In early 2009, the Arkansas legislature expanded the Wetland and Riparian Zones Tax Credit Program to allow credits for the donation of conservation easements in wetland and riparian zones.  Easement donors in these areas may qualify for an income tax credit for 50% of the easement's appraised value, up to $50,000.  While these credits are not transferable, remaining amounts may be carried forward for up to 9 years. Unfortunately the entire tax credit program is capped at $500,000, but supporters are hopeful that getting their foot in the door will pave the way for future expansion.

Learn More:

• Read the Full text of Act 351 of 2009.
• See the Wetland and Riparian Zones Tax Credit Program website.

California

The Natural Heritage Preservation Tax Credit Act offers incentives to preserve wildlife and plant habitat, agricultural lands, open spaces, and water rights on private lands. Landowners, including pass-through entities who donate land, an easement, or water rights are eligible for the credit. Eligible donations must meet the goals of a conservation plan, protect species or habitat, conserve threatened agricultural land, or increase public access to open space or archaeological resources. The tax credits are managed by the state resource agencies and essentially "granted" to landowners. Donors are allowed an income tax credit of 55% of the fair market value of the donated property against their income, with an eight-year carry-forward period. The tax credit program was suspended in 2002, but reinstated in 2005. Under the reinstated program, the state resource agencies and departments have to provide funds to the state's general fund to replace any tax credit claimed by a landowner. Please see the links below for details on the current status. The California conservation easement tax credit is non-transferable and applies in addition to federal tax benefits.

Learn More:

• See the California Council of Land Trusts website for more details.
• See the text of the California law.

Colorado

A conservation tax credit is available to Colorado residents, corporations, estates, and trusts who donate a conservation easement. Since 2007, the credit has been valued at 50% of the fair market value of the easement, up to a maximum credit of $375,000. A taxpayer can also sell all or part of a credit to a "transferee.” In recent years, Colorado land trusts have worked with the state legislature to craft additional reforms that ensure the integrity of the program and address budgetary concerns without permanently restricting its size.

Learn More:

• See details on Colorado’s conservation easement credit statute.
• Additional details from Colorado Cattlemen’s Agricultural Land Trust.
• Explore the Tax Credit Connection’s FAQ’s on the Credit.
• Learn more about transferring state tax credits in Colorado from the Conservation Resource Center

Connecticut

Connecticut provides a state corporate income tax credit for donations of conservation land or easements equal to 50% of the donation's fair market value. A 10-year carry forward period is available to donors whom do not use up the entire credit in the year of its origination. Donated land or easements must a) conserve natural or scenic resources, b) protect natural streams or water supplies, c) conserve of soils, wetlands, beaches, or tidal marshes, d) enhance neighborhood parks, forests, wildlife preserves, nature reservations, or other open space, e) enhance public, recreation opportunities, or f) preserve historic sites. The Connecticut conservation easement tax credit is non-transferable and applies in addition to federal tax benefit.

Learn More:

• See form 1120DL to claim the Connecticut credit.

Delaware

Delaware provides tax incentives to individuals or corporations that donate land or conservation easements. The credit is equal to 40% of the fair market value of the donation with a maximum credit of $50,000 for individuals per year. A 5-year carry forward period is available to individuals whom do not use up the entire credit in the year of its origination. Delaware conservation donations aim to conserve open space, natural habitat, recreational properties, resource conservation, and historic properties. The Delaware conservation easement tax credit is non-transferable and applies in addition to federal tax benefits.

Learn More:

• See the text of the Delaware law.

Florida

Florida has no state income tax, so in November 2008, Florida voters took the innovative approach of exempting land under easement from all state property tax, passing Amendment 4 by an overwhelming margin.  The law has two parts -- the first provides for a tax exemption for properties with a perpetual conservation easement.  The second provides for a "conservation assessment" on land that is in conservation use. The legislature recently enacted implementing legislation.

The permanent conservation easement portion includes requirements that mirror what land trusts already do in compliance with IRS rules and land trust standards and practices.  The bill does require that properties be at least 40 acres, unless they have special environmental features or are located next to protected areas, and excludes one acre around homes and buildings.  The second section allows for voluntary ten year covenants to restrict development rights.  There is a re-capture mechanism for back taxes when the land is taken out of conservation, but the rules for this are not spelled out, and will be developed by the Department of Revenue.

Learn More:

• Information on the property tax exemption from the Acquisition and Restoration Council
• Department of Revenue Application Form

Georgia

Georgia provides a state tax credit to individuals and corporations donating land or easements for conservation. The tax credit allows taxpayers to claim a credit against their state income tax liability of 25 percent of the fair market value of the donated property interest, up to a maximum credit of $250,000 for individuals and $500,000 for corporations. The allowed tax credit may not exceed the amount of tax owed for the taxable year, but any unused portion of the tax credit may be carried forward for the next five years. In Spring 2011 the Georgia tax credit was amended to make it transferable.

Learn More:

• See the text of the Georgia law.
• See the amendment that made it transferable.
• Additional details on the credit.

Iowa

Thanks to new legislation passed in 2008, Iowa taxpayers can now claim a substantial Iowa tax credit for donations of land or conservation easements.  Donors may receive 50% of the fair market value of the donated property interest up to a maximum tax credit of $100,000. These credits are not transferable, but any remaining value may be carried forward over a total of 20 years!  Iowa Natural Heritage Foundation (INHF) was part of a team of conservation interests that pitched their state tax credit to legislators and encouraged its adoption. “We really appreciate the work of so many lawmakers who understood that conservation budgets could not keep pace with land inflation, so they supported this innovative tax policy to encourage more voluntary land protection,” said INHF Public Policy Director Duane Sand.

Learn More:

• See Iowa Natural Heritage Foundation's guide for landowners which includes a wealth of links including legislative text.

Maryland

Maryland income tax payers who donate a conservation easement (not land in fee) may be eligible for a conservation tax credit. Easement donors qualifying for the State Income Tax Credit can deduct up to $5,000 per year with a 15 year carry forward period. Easements must be held or co-held by the Maryland Environmental Trust or the Maryland Agricultural Land Preservation Foundation, and approved by the Board of Public Works.

In addition, easement donors may also qualify for the Conservation Property Tax Credit if their easement protects unimproved, non-commercial land. This credit is worth 100% of the property tax paid on the eased land. The Maryland conservation easement tax credit is non-transferable and applies in addition to federal tax benefits.

Learn More:

• Learn more about the State Income Tax Credit from the Maryland Environmental Trust.
• See the official application form for the Conservation Property Tax Credit.
• For more information view the Eastern Shore Land Conservancy tax benefits information.

Massachusetts

In January 2009, Massachusetts enacted a new state tax credit for donors of land or easements. Donors may receive 50% of the fair market value of the donated property interest up to a maximum tax credit of $50,000. These credits are not transferable, but any remaining value may be carried forward for up to 10 years. Unfortunately, the entire program is currently capped at $2 million per year. The new credit enters into effect January 1, 2011.

Learn More:

• See the final bill text.
• See the state's tax credit webpage
• See a fact sheet on the tax credit

Mississippi

Mississippi appears to have two, small, narrowly focused tax credits for conservation:

H.B. 701 of 2003 offers a non-transferable credit toward 50% of allowable transaction costs associated with donating an easement on "Lands to protect stream bank habitats and  stability and to protect high biodiversity sites with exemplary natural communities or species of special concern or endangered species." The credit is capped at $10,000 and may be carried forward for 10 years.

A second credit was enacted in April 2010 with the passage of H.B. 1716. It appears to provide a credit of $5.50 per acre, per year, for certain lands made available for habitat or recreational purposes.  Information about the new credit is still limited.

Learn More:

• See the text of the 2003 tax credit for transaction costs

New Mexico

The Land Conservation Incentives Act of New Mexico offers a tax credit of up to $250,000 per year to anyone donating a qualified fee interest or conservation easement to any 501(c)3 organization or government entity. The credit is for 50% of the fair market value of the appraised value of the land or easement and may be carried forward for twenty successive years. In addition, the credit is transferable, meaning that a qualifying applicant for the credit can sell it on the open market at a discounted rate.  Qualifying land or easements must be donated for preservation of relatively natural habitat, open space, agricultural lands, outdoor recreation or education for the benefit of the general public, and/or historically important structures or land areas.

Learn More

• Visit The New Mexico Land Conservancy's website for additional details on the credit.
• Visit the Tax Credit Connection for information about the transferability of credits.

New York

Beginning in 2007, this innovative credit will give New York State landowners whose land is restricted by a conservation easement income tax credit. The landowner's state income tax will be reduced by 25% of the property tax paid on the eased property, up to $5,000. It is available to all owners of easement-restricted land, regardless of when the easement was created, provided that the easement was wholly or partially donated to a land trust or a governmental agency. The New York conservation easement tax credit is non-transferable, but is refundable and applies in addition to federal tax benefits.

Learn More:

• See more details on the New York State tax credit.

North Carolina

The North Carolina Conservation Tax Credit Program provides an income tax credit to some land easement donors. Land or easement donations must provide public access to land or water, fish and wildlife conservation, or fulfill other land conservation purposes (note: this is different from the federal tax code specification). The credit is worth 25% of the fair market value of the donation with a total credit of $250,000 for individuals and $500,000 for corporations. Any unused portion of the credit may be carried forward for five succeeding years. Credit taken in any year may not exceed the amount of income tax imposed by the state, reduced by the sum of all other credits. The North Carolina conservation easement tax credit is non-transferable and applies in addition to federal tax benefits.

Learn More:

• See the North Carolina Department of Environmental and Natural Resources for more details on the credit.
• See the text of the North Carolina law for corporations.
• See the text of the North Carolina law for individuals.
• See the Carolina Mountain Land Conservancy for FAQs on North Carolina’s conservation easements

South Carolina

The amended section of the 1976 code requires that a landowner has qualified for and claimed on their federal income tax return a charitable deduction for a gift of land for conservation, or for a qualified conservation contribution, to be eligible for the state income tax credit. South Carolina’s tax incentive comes in the form of a tax credit equal to 25% of the fair market value of the conservation gift. The tax credit is limited to a maximum of $52,500 per year, and to $250 per acre. The South Carolina tax incentive allows the landowner to carry the unused portion of the credit forward indefinitely until the full credit is claimed. The South Carolina conservation easement tax credit applies in addition to federal tax benefits.

Learn More:

• Detailed information on Local, State and Federal Tax Incentives in South Carolina is available from the Department of Revenue (PDF).
• Explore resources from the Open Space Protection Collaborative.
• Learn about buying and selling credits from the South Carolina Conservation Credit Exchange.

Virginia

Under the Virginia Land Conservation Act of 1999, every landowner who donates land or an easement for conservation is entitled to a credit against state income tax. The credit is worth 40% of the easement’s fair market value, up to $100,000 per year. Virginia’s income tax credit is available to tax-payers who donated a conservation easement after January 1, 2000. This tax credit applies to any person, corporation, partnership, organization, trust or estate subject to state or local taxation. If the credit is not used up in the year of the easement donation, it can be carried forward for an additional five years. Furthermore, if the easement was donated after 2001, the credit may be sold or transferred to other Virginia taxpayers. Individuals and corporations in the state of Virginia may buy or sell conservation tax credits, as long as a notification of the transfer of the credit is sent to the tax commissioner. For 2009 and 2010, the Legislature reduced the cap from $100k to $50k, but since the credits are transferable a donor should still be able to claim full credit--they may just have to transfer credits to more separate taxpayers.

Learn More:

• Read the Virginia Department of Taxation’s synopsis of the state tax credit program.
• See information from the Virginia Outdoors Foundation.
• See the text of the Virginia law.

If you have information on a pending credit, or would like to update the information above, please e-mail policy@lta.org.