Contact: Russ Shay
Director of Public Policy
202-638-4725, ext. 305 | rshay@lta.org

WASHINGTON, D.C.-- Voluntary conservation of private land received a boost yesterday when President Obama mentioned the work of land trusts in his remarks introducing the landmark America’s Great Outdoors Report at a reception in the East Room of the White House. The collective voice of land trusts was reflected in the report, which proposes to extend the enhanced tax incentive for conservation easement donations beyond 2011, fully fund the Land and Water Conservation Fund (LWCF), and focus a portion of LWCF on innovative projects that support urban parks, community green spaces and large-scale land conservation.

Mr. Obama said that “at a time when America’s open spaces are controlled by a patchwork of groups, from government to land trusts to private citizens, it’s clear that conservation in the 21st century is going to take more than what we can do here in Washington…Meeting the new test of environmental stewardship means finding the best ideas at the grassroots level, it means helping states, communities and nonprofits protect their own resources, and it means figuring out how the federal government can be a better partner in those efforts.”

The report draws inspiration from hundreds of land trust participants at America’s Great Outdoors listening sessions around the country. “I am proud of the nation’s 1,700 land trusts for pioneering the voluntary conservation incentives and locally driven partnerships embraced in this report,” Land Trust Alliance President Rand Wentworth said. “This initiative will significantly reorient federal conservation efforts to emphasize working lands and to embrace local governments and land trusts as effective partners in conserving the places that give meaning to our lives.”

The report’s vision statement describes a future in which “Rural lands—our working farms, ranches and forests—are conserved and restored through local partnerships.” The president’s  Fiscal Year 2012 Budget Request makes a down payment on that vision by providing $200 million for the Farm and Ranch Lands Protection Program and $900 million for the LWCF, some of which “will be competitively awarded to address priorities and leverage resources for urban parks and public-private conservation projects.”

In communities across America, nonprofit land trusts are working with private landowners to keep farm, ranch and forest lands in productive use, create community parks and open space, protect important fish and wildlife habitat, and conserve our scenic and historic heritage.  With the help of more than 100,000 volunteers and 2 million members, land trusts have conserved more than 37 million acres, including more than 12 million acres protected by voluntary conservation agreements with private landowners.

About the Land Trust Alliance

The Land Trust Alliance is a national conservation group that works on behalf of America’s 1,700 land trusts to save the places people love by strengthening land conservation throughout America. The Alliance 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.

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Download a printable PDF (100KB).

Deirdre Murphy
Phone: 202-228-5852

 
Udall, Bennet Urge IRS to Work With - Not Against - Colorado to Protect Viability, Integrity of Conservation Easement Program

Citing Importance of Conservation Easement Program in Colorado, Lawmakers Urge Feds to Work With State to Provide Certainty to Landowners
  
Mark Udall and Michael Bennet, U.S. Senators for Colorado, today urged the Internal Revenue Service (IRS) to work with state officials to protect the long-term viability and integrity of Colorado's conservation easement program, citing steps the State has already taken to provide strong oversight and eliminate fraud while promoting conservation activities.
 
Colorado landowners' ability to pair state and federal tax benefits is part of what has made the state a national model for use of conservation easements and incentives. Combined state and federal efforts have protected over a million acres of land in Colorado.
 
Colorado has been in close communication with the IRS for years about the extensive auditing process the IRS undertook in 2006 and has yet to complete. Many of the audits remain unresolved to this day, leaving landowners and land trusts alike in limbo.
 
In a letter to IRS Commissioner Douglas Shulman, Bennet and Udall expressed concerns with the agency's ongoing audits of conservation easements in Colorado and called attention to recent actions taken by state agencies to improve and strengthen oversight of conservation easements.
 
"While we appreciate the need to examine these conservation easements to address any abuse, we believe that Colorado has been making great strides to ensure the legitimacy and appropriate value of associated tax benefits of conservation easements across the state," wrote Udall and Bennet. 
 
"As a result, we would encourage the IRS to work with Colorado officials on these efforts so that we can help property owners-many of whom worked in good faith to establish these easements-resolve their tax issues and enjoy some certainty regarding their easements and tax obligations and liabilities," the lawmakers continued. 
 
In addition, the lawmakers asked Commissioner Shulman for updates on the status of ongoing audits of existing conservation easements in Colorado, and pushed for answers on what methods and procedures the IRS is using as it carries out the auditing process.
 
The full text of the letter to Commissioner Shulman is included below:
 
The Honorable Douglas Shulman
Internal Revenue Service
1111 Constitution Avenue, Northwest
Washington, DC 20224

Dear Commissioner Shulman:

We are writing to express our concerns with the ongoing efforts by the Internal Revenue Service to audit conservation easements in Colorado.  While we appreciate the need to examine these conservation easements to address any abuse, we believe that Colorado has been making great strides to ensure the legitimacy and appropriate value of associated tax benefits of conservation easements across the state.  As a result, we would encourage the IRS to work with Colorado officials on these efforts so that we can help property owners-many of whom worked in good faith to establish these easements-resolve their tax issues and enjoy some certainty regarding their easements and tax obligations and liabilities. 

Conservation easements are an important land management and land preservation tool in Colorado.  A combined state and federal commitment to land preservation via a federal income tax credit, a state income tax credit, and the state's Great Outdoors Colorado Trust Fund collectively have made Colorado a national model for conservation incentives by carefully balancing regional economic needs with critical land and water preservation. Colorado's efforts combined with the incentives created by Congress have protected over a million acres of land in our state.
We want to bring to your attention some recent actions taken by Colorado that in our view should alreadyprovide strong oversight of conservation easements.  In 2008, the state of Colorado enacted HB08-1353, important reform legislation to eliminate fraud while promoting conservation. 

Specifically, the law set in place three important safeguards: 

1. All conservation easements that result in a tax credit must now be held by organizations certified by the State.

2. All conservation easement appraisals must be submitted to the State for review.

3. The law created a Conservation Easement Oversight Commission to advise the Colorado Department of Revenue and Colorado Division of Real Estate regarding conservation easements.
These reforms have been very successful in eliminating abuse of the tax incentives Colorado has in place. We are pleased the State has taken steps to ensure that landowners can continue to utilize conservation easements to preserve farm and ranch land, maintain critical wildlife habitats and community recreation lands. 

We also would like to take this opportunity to request an update from the IRS with regard to the status of ongoing audits of existing conservation easements in Colorado.  Specifically, we would like the IRS to confirm: 

1. How many total audits have been conducted in Colorado since 2005 and how many are in process now?  How do these numbers compare with other states?

2. How did the IRS go about conducting the audits it undertook and if settlement was offered, what was the procedure used to notify individuals of the audit?  How were any settlement offers made, what was the process for notification and what were the proposed terms of settlement?

3. Are the easements being audited based on the value of conservation qualities or the appraised easement value?

4.  In auditing lands to determine land and tax credit values, did the IRS use certified appraisers that are familiar with Colorado land values?  Are the comparable values that they used available for public review? 

Coloradans consistently identify conservation as one of the most important issues facing them today.  Maintaining these programs is also critical to our farmers and ranchers whose lands provide important agricultural products, wildlife habitat, water resources, and scenic vistas for which our state is famous. We are committed to working with you, our Congressional colleagues, the State, and with you to ensure conservation easements are utilized properly and remain a viable land preservation tool in our state and across the country. We look forward to your response.

Tennessee Leaders Highlight Opportunities Presented by America’s Great Outdoors Initiative

NASHVILLE, TN -- The Obama administration’s America’s Great Outdoors initiative comes to Tennessee Friday August 27 in an effort to develop a conservation agenda for the 21st century. Conservation, recreation and business leaders across Tennessee are calling on citizens to speak-up and help shape the initiative aimed at getting kids outside and safeguarding our natural heritage.

The “listening session” will be held in Nashville on August 27, 10:00am at the Downtown Library. The public is encouraged to attend the sessions and to provide feedback at http://www.doi.gov/americasgreatoutdoors/.

“Our parks, forests, and public lands are what make Tennessee great,” said Kathleen Williams, President of the Tennessee Parks and Greenways Foundation. “This initiative is a tremendous opportunity to address critical issues facing our natural treasures and take meaningful steps to restore and protect them.”

“Connecting people, especially children, to Tennessee’s great outdoors has long been a core goal of the Tennessee Wildlife Federation, said Mike Butler, CEO of Tennessee Wildlife Federation. “ As an example, over the past four years the Federation’s Great Outdoors University program has reached over 7,000 economically disadvantaged children by outdoor experiences in Tennessee. We believe that exposing people to the wonders of Tennessee’s natural beauty can and does change lives for the better by improving body, mind and spirit.”

Earlier this month, Tennessee Senators Corker and Alexander introduced the Tennessee Wilderness Act of 2010, which could protect nearly 20,000 acres of wilderness in the Cherokee National Forest.  The bipartisan, historic legislation was crafted by collaborative civilian and federal partnerships aiming to provide everlasting protection for eastern Tennessee’s land and wildlife.

“The Tennessee Wilderness Act is a model of local partnerships and bipartisan support that embodies all that America’s Great Outdoors has the potential to do,” said William H. Meadows, a native Tennessean and President of The Wilderness Society. “Protecting, connecting and restoring our lands and waters in Tennessee will enable people to enjoy their favorite outdoor activities.”

Full annual funding of at least $900 million for the Land & Water Conservation Fund is essential to preserve critical land and waters, natural, cultural, and historic resources in Tennessee.

“The knitting together of publicly and privately-protected lands is what makes Tennessee’s landscape so unique,” stated Jeanie Nelson, President and Executive Director of The Land Trust for Tennessee. “Adequate funding of tools available to private landowners- such as tax incentives for donated conservation easements and the Farm and Ranchland Protection Program are essential in building a strong network of privately protected lands.  The ongoing protection of all types of land- from public recreation lands to our working farms- is critical to the future of our state.”

“Our membership unanimously endorses the full funding of the Land and Water Conservation Fund, as well as adequate protections for our lands and waters.” Stated Sandra K. Goss,  Executive Director of Tennessee Citizens for Wilderness Planning.   “Tennessee’s natural beauty is largely responsible for tourism, which is one of the biggest industries in the state. The natural treasures of our state must be looked after and treated well so they can sustain us for years to come.”

“Radnor Lake State Natural Area is an example of the needed and successful partnership among state, federal and local entities that come together to create such valued public lands in the midst of urban areas, said Emmie Thomas, director of Friends Of Radnor State Park.  “Vision and funding from the LWCF helped to create what is today a 1200 acre haven for over 1,000,000 visitors a year in addition to the 240 species of birds- including the American Bald Eagles seen recently on the lake, and 400 varieties of wildflowers and plants.”

River protection and restoration is a focus in Tennessee and nationwide, because rivers provide fishing, paddling and other recreation for all ages.  They connect our communities to parks and other natural treasures, and they give us clean water – the number one environmental concern among Americans.

“The new Harpeth River Blueway is great example of Tennessee’s leadership in the river trail, or blueway effort that is a terrific economic, cultural, and quality of life benefit to communities,” said Dorene Bolze, Executive Director of the Harpeth River Watershed Association. “The Obama administration can create a National Blueway Initiative to help everyone discover and steward our nation’s rivers and wetlands.”

"Protecting Tennessee's beautiful rivers and streams also protects our treasured landscapes by increasing awareness of impacts to our local streams,” added Renée Victoria Hoyos, Executive Director of the Tennessee Clean Water Network. “Our most favorite rivers are those that flow through our towns."

Conservation leaders in Tennessee are urging the administration to take this opportunity to strengthen the capacity for federal, regional, state, and local agencies and private landowners to work collaboratively in order to protect national parks, and also the wildlife, plants, and rivers beyond park borders.

"Tennessee is home to 14 national park sites, including three national and historic trails, the Natchez Trace Parkway, and the Tennessee Civil War Heritage Area," said Emily Jones, Senior Program Manager at the National Parks Conservation Association.

"Community-centered partnerships like our Tennessee Civil War National Heritage Area are proven ways of reconnecting Americans to our compelling national landscapes,” added Carroll Van West, Director of the MTSU Center for Historic Preservation and the Tennessee Civil War National Heritage Area.

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Contact: Russ Shay
Director of Public Policy
202-638-4725, ext. 305 | rshay@lta.org

Deduction That Boosted Conservation by a Million Acres Gets New Life

WASHINGTON, D.C. -- After a year-long lapse that left many important conservation donations in limbo, Congress renewed an enhanced tax incentive for conservation easements that increased private land conservation by a third—to over a million acres a year. The renewed incentive will be in effect through December 31, 2011 and retroactive to January 1, 2010.

Land Trust Alliance President Rand Wentworth gave special credit to the sponsors of legislation to make this incentive permanent, Senators Max Baucus (D-MT) and Charles Grassley (R-IA), and Representatives Mike Thompson (D-CA) and Eric Cantor (R-VA). “These leaders have worked hard to make sure we can continue the success this incentive has already had, protecting special places and productive working lands in hundreds of communities across the country,” Wentworth said. “The land this incentive helps protect is an investment in clean water, fresh, local food, wildlife habitat, and scenic beauty.”

A broad coalition of sportsmen, outdoors enthusiasts, farmers, ranchers and national conservation groups worked together to renew the incentive and will push to make it permanent in the 112th Congress. Bills to do just that (H.R. 1831 and S. 812) have 274 House and 41 Senate co-sponsors from all 50 states, including majorities of Democrats and Republicans in the House.

By helping modest income landowners deduct the full value of their contributions, this enhanced easement incentive has increased the pace of private, voluntary land conservation by about 250,000 acres a year nationwide, and is especially important now that the latest reports show that America is losing land to development at the rate of 1.5 million acres per year.

The enhanced incentive, which applies to a landowner’s federal income tax:

• Raises the deduction a donor can take for donating a voluntary conservation agreement from 30% of their income in any year to 50%;
• Allows farmers and ranchers to deduct up to 100% of their income; and
• Increases the number of years over which a donor can take deductions from 6 to 16 years.

Read more at: www.lta.org/easementincentive. Landowners interested in conserving their land under this provision should contact a land trust in their community: www.findalandtrust.org.

About the Land Trust Alliance

The Land Trust Alliance is a national conservation group that works on behalf of America’s 1,700 land trusts to save the places people love by strengthening 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.

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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.

In all the hoopla surrounding the current stimulus package, it's easy to forget that other stimulus bill -- the one in 2008 that resulted in a good-sized check for many U.S. taxpayers.  Forgetting about that earlier stimulus, and any of the other major tax changes in 2008, could mean missing out on some much-needed cash when you file your tax return this year.  There were six "pretty significant pieces of tax legislation" in 2008, said Mark Luscombe, a principal analyst with CCH, Inc., a Riverwoods, Ill., tax publisher, including bills related to housing, farming, the military, pensions, and two on the economy.  Read full story >>