Conservation Easements 101
Native Plants in
the Landscape
July 24, 2009
Why is this important?
What will it do for me?
What can I do?
Milo Pyne, NatureServe
Acknowledgements
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Land Trust Alliance
http://www.landtrustalliance.org
LandScope America http://www.landscope.org/
NatureServe http://www.natureserve.org/
What is an Easement?
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It is a kind of property “right” –
but not ownership, nor a license
Property ownership is a “bundle”
of rights, some are transferred
Traditionally include rights-of-way, easements of
support (pertaining to excavations), easements of
"light and air", and rights pertaining to artificial
waterways
Does not make the land public
Rules/laws/benefits vary widely by state
What is a Conservation Easement?
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The most traditional tool for conserving
private land, a “conservation easement” (also
known as a conservation restriction) is a
legal agreement between a landowner and a
land trust or government agency that
permanently limits uses of the land in order
to protect its conservation values.
Why Should I Care?
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A conservation easement allows landowners
to continue to own and use their land, and
they can also sell it or pass it on to heirs.
If the donation benefits the public by
permanently protecting important
conservation resources, and meets other
federal tax code requirements, it can qualify
as a tax-deductible charitable donation.
Of mutual benefit…
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A voluntary agreement; “runs with the land”
The donor and the recipient of the easement
both achieve their objectives
It is also necessary that the recipient be able
to guarantee that the terms of the easement
are adhered to
There are costs to the recipient associated
with this…
Terms of an Easement
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It is a relationship between a willing donor or
seller and a willing recipient
The landowner contributes to the public good
by preserving the conservation values
associated with their land for future
generations.
The easement holder has a responsibility to
monitor future uses of the land to ensure
compliance with the terms of the easement and
to enforce the terms if a violation occurs.
General Purposes:
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To protect land from certain forms of development or
use, including agricultural land, timber resources,
and/or other valuable natural resources such as wildlife
habitat, clean water, clean air, or scenic open space.
The right to subdivide and build on the land is
separated from the other rights of ownership.
The landowner who gives up these "development
rights" continues to privately own and manage the land
and may receive significant state and federal tax
advantages for having donated and/or sold the
conservation easement.
Terms and conditions…
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A landowner sometimes sells a conservation
easement, but usually easements are donated to a
land trust.
Easement values vary greatly; in general, the
highest easement values result from very restrictive
conservation easements on tracts of developable
open space under intense development pressure.
In some jurisdictions, placing an easement on your
property may also result in property tax savings.
Disclaimer: consult your own tax advisor!
Income Tax Deductions
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Landowners who donate a "qualifying" conservation
easement to a "qualified" land protection organization may
be eligible for a federal income tax deduction.
The value of the easement donation, as determined by a
qualified appraiser, equals the difference between the fair
market value of the property before and after the easement
takes effect.
The easement must be: a) perpetual; b) held by a qualified
governmental or non-profit organization; and, c) serve a valid
"conservation purpose" - property must have an appreciable
natural, scenic, historic, scientific, recreational, or open
space value.
Disclaimer: consult your own tax advisor!
About the 2008 Farm Bill
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With the passage of the Farm Bill in the summer of 2008 these
expanded federal income tax incentives were extended and also
apply to all conservation easements donated in 2008 and 2009.
This Bill extended tax incentive legislation that applies to a
landowner’s federal income tax and will:
– Raise the deduction a donor can take for donating a
voluntary conservation agreement from 30% of their income
in any year to 50%;
– Allow farmers and ranchers to deduct up to 100% of their
income; and
– Increase the number of years over which a donor can take
deductions from 6 to 16 years.
Disclaimer: consult your own tax advisor!
Reducing Estate Taxes
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Perhaps the most important benefit, a conservation
easement can be essential for passing undeveloped
land on to the next generation. By removing the
land’s development potential, the easement typically
lowers the property’s market value, which in turn
lowers potential estate tax.
Whether the easement is donated during life or by
will, it can make a critical difference in one’s heirs’
ability to keep the land intact.
LTA - Working for a Permanent
Easement Incentive!
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We need to defend a 2006 tax incentive that enables
family farmers, ranchers, and other moderate-income
landowners to get a significant tax benefit for donating a
conservation easement on their land.
It allows landowners to deduct a larger portion of their
income over a longer period of time.
Unless Congress acts, this important conservation tool
will expire December 31, 2009!
http://www.landtrustalliance.org/policy/taxincentives/federal
NC House approves easement
protection bill!
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On July 15, the North Carolina House voted 114-4 to
pass H1080, a bill that will help protect conservation
easements from condemnation for public works
projects. The measure will set a higher standard for
such condemnations, and it will enable landowners and
easement holders to be reimbursed at full market
value. It is similar to Senate Bill S600.
House bill H1080 now goes back to the Senate for
concurrence with the House changes
thanks to Rep. Ruth Samuelson and to Eddie Poe and
Dave Cable of the Catawba Lands Conservancy!
Importance to the Conservation
Community…
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Many state funds to support conservation
land purchases have been scaled back or
curtailed (e.g. Clean Water Management
Trust Fund in NC)
This increases the importance of the
Conservation Easement as a land protection
tool!
Beginning to evaluate your land…
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Is your land part of a conservation priority
area?
Is your land adjacent to any public land or
dedicated open space?
Is your land farmland near to an area of
rapidly growing population?
These are factors that would help determine
if it has value as a conservation easement!
LandScope.org can help!
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LandScope America: The Conservation Guide
to America’s Natural Places
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www.landscope.org
Themes in map viewer include:
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Conservation Priorities
Protected Areas
You can view your land in context!
Some additional resources:
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http://www.landscope.org/action/conserve/easements/
http://www.landscope.org/action/conserve/federal_progra
ms/
http://www.landtrustalliance.org/ (search site)
http://landtrust.org/ProtectingLand/EasementInfo.htm
Thanks for your attention and your support
of land conservation!