What are the benefits of putting
property into a conservation easement?
Putting your property
into a permanent conservation easement is a win-win proposition with
financial and non-financial benefits for you and for the
State of Virginia. Click each topic below to learn more
about the benefits of conservation easement.
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It is not so much for its beauty that
the forest makes a claim upon men's hearts, as for that
subtle something, that quality of air, that emanation from
old trees, that so wonderfully changes and renews a weary
spirit.—Robert Louis Stevenson
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Financial benefits to landowners
The donation of a conservation easement to the Land Trust
normally qualifies as a charitable contribution, which may entitle
the donor to a charitable income tax deduction for the easement's
value. The value of this type of charitable gift is based
on "before" and "after" appraisals - the first
assessing the land's value before the conservation easement is
in place, the second assessing its value afterwards. The difference
between the two appraisals is considered the value of the conservation
easement.
To qualify for a tax deduction, the easement must be donated
to the government or a qualifying conservation or historic preservation
organization. The Land Trust of Virginia qualifies as a federally
recognized public charity under Internal Revenue Code Section
501(C)(3).
The Commonwealth of Virginia grants donors of conservation
land and easements a credit against state income taxes of one-half
the value they contribute. Under the Virginia Land Conservation
Act of 1999, every landowner who donates land on an easement for
conservation is entitled to a credit against state income tax
of 50% of the value of the donation. A tax credit is subtracted
from the amount of income tax the taxpayer owes for the year,
so it is the same as a cash payment of that amount to the conservation
donor. Unused credits may be carried forward into five more tax
years after the original donation.
Many landowners receive a federal income tax deduction for
the gift of a Conservation Easement. The Internal Revenue
Service allows a deduction if the easement is perpetual and donated
"exclusively for conservation purposes." The amount
of the tax deduction is determined by the value of the conservation
easement. In addition, the donor may have estate and property
tax relief.
Other financial incentives can be found in certain federal programs.
For example, USDA Natural Resources Conservation Service (NRCS)
has an on-going initiative called "The Wetlands Reserve Program."
It is a voluntary program offering landowners the opportunity
to protect, restore and enhance wetlands on their property. The
program provides technical and financial assistance to interested
landowners. For more information, visit the
Wetlands Reserve Program website.
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Non-financial benefits for
landowners
"I was born and raised here on this farm, and sadly my father
died in a tragic accident, and left us trying to figure out how
we could keep this farm in the family. We wanted to do whatever
we could to keep it, and a conservation easement to the county
seemed to be the best way to do it. The easement has helped us
tremendously-we wouldn't have been able to keep the farm without
it.
"The upkeep of a farm is tremendous,
and when we heard about the conservation easement program, it
seemed ideal for us-a cash influx to help us keep the farm and
a way to keep the farm as a rural open space into perpetuity."
—Cricket Whitner
"Putting our land in easement meant a great deal to us,
and it really was a straight-forward process. The key was for
us to figure out exactly what we wanted out of the easement. And
then getting some help from the Land Trust and following their
process wasn't difficult at all.
"I think all of us want to leave a legacy, if we can. And
being able to leave land that's going to be open into perpetuity
for everybody to enjoy and to serve as a habitat, there just isn't
anything better that you can do."
—Linda Porter
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Benefits for the Commonwealth
of Virginia
"I bought this property six years ago for the beautiful
view and also because of the history that was associated with
it. About 150 years ago, this country had a little discussion
on how it was going to stay together, and one of the deciding
battles of the Civil War was fought right here on this property.
"Because of the easement, I know that the property isn't
going to get torn up, it will be here into perpetuity. That's
a tough thing to do in this day and age, but I think it's something
worthwhile to do for those who will follow us."
—John Zugschwert
"I bought this land in easement, and if it hadn't been,
I would've put it in easement because I think it's important to
keep this countryside open for future generations. I think it's
a very worthwhile thing to do for the community."
—Priscilla Rogers
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