Conservation Tax Incentive
Extended Thru 2011

How the Tax Incentive Works

The renewed incentive helps landowners protect properties with important natural, historic, and agricultural values by:

• Raising the deduction a donor can take for donating a conservation easement from 30 percent of his or her Adjusted Gross Income (AGI) in any year to 50 percent;
  
  
• Allowing qualifying farmers and ranchers to deduct up to 100 percent of their AGI; and
  
  
• Extending the carry-forward period for a donor to take tax deductions for a voluntary conservation from 5 to 15 years.

Under prior law, an agricultural landowner earning $50,000 a year who donated a conservation easement worth $1 million could take a total of no more than $90,000 in tax deductions.  Under the new law, that landowner can take as much as $800,000 in tax deductions. Donors of conservation easements often also realize reductions in property tax and estate tax valuations.

In order to take advantage of the federal tax incentive for the donation of a conservation easement, the landowner must obtain an appraisal that meets the IRS requirements, a process that can take several weeks.  Anyone interested in pursuing this opportunity, should begin the process soon in order to meet the December 31 deadline.

More Information Regarding the Conservation Tax Incentive

For more information regarding this tax incentive please visit the Land Trust Alliance website www.lta.org or click for their updated conservation tax incentives brochure.

Additional LTA information on the tax incentive can be found at the following links.

How to Use the Easement Incentive

Federal Tax Regulations for all Conservation Contributions