Conservation Tax Incentive Promotes Private Land Protection

Landowners now have a powerful and improved conservation tax incentive that will aid them in permanently protecting their land from environmental degradation and misuse for generations to come.   As part of the Middle Class Relief Act (H.R. 4853) this tax incentive is applicable to lands that are protected through a voluntary conservation agreement (conservation easement), and apply for tax years 2010 and 2011. 

Property owners who donate easements to a land trust or other land protection organization are entitled by IRS law to deduct the value of this easement from their federal income tax.   With these new incentives and based upon the value of the easement, a landowner can now deduct 50% of their income for up to 16 years -- farmers and ranchers can deduct 100% of their income.   Previously the law only allowed a 30% deduction for up to 6 years.  

To clarify, under the 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 revised law, that landowner can now take as much as $800,000 in tax deductions.   In this same scenario, a non-agricultural landowner would be able to realize $400,000 in tax deductions, spread out over 16 years if desired.  A tax advisor can explain the tax benefits for your situation.

Although less than the full value of the donation, this significant increase makes it economically feasible for landowners of modest means to permanently protect their land while continuing to earn a living from it.   Currently these tax incentives are only available for tax years 2010 and 2011, but bills to make them permanent enjoy broad bipartisan support in Congress.

Permanent Land Protection  - A Wise Investment in the Future

Shrinking paychecks, rising costs and the lure of quick, lucrative income from land development and mineral exploration put immense pressure on private landowners to sell or lease their land.  Often property owners feel they have no choice but to forfeit the family farm or their treasured lands to make ends meet.   An alternative solution experiencing phenomenal success nationwide is the use of a voluntary conservation agreement, also known as a conservation easement. 

Conservation easements give property owners a non governmental means to permanently protect working farms and ranches and conserve natural areas, while continuing to own, enjoy, and make a living off their lands.  This flexible tool provides a powerful, legal way to pass family land to the next generation minus the financial burdens and to preserve traditional ways of life that are important to families and communities. Land protected through conservation easements and other private means also play an increasingly critical role in preserving clean air, drinking water, wildlife habitat, biodiversity, scenic views and agriculturally productive lands.

The easement agreement is legally held in perpetuity by a land trust, which is also charged with its stewardship.   A land trust is a nonprofit organization that actively works to conserve land by undertaking or assisting in land or conservation easement acquisition, and by its stewardship of such land or easements.

In all regions of the United States, the amount of permanently protected private land continues to increase as landowners realize both the importance of saving open space and the economic benefits.  The 2005 National Land Trust Census Report, the last year for which statistics are available, indicates that a total of 37 million acres have been conserved nationally, a 54% increase from 24 million acres in 2000.  Furthermore the number of registered land trusts grew 32% in this same 5 year period from just over 1200 to 1667 nationwide. Thetrends cited in this reportconfirm the importance that Americans place on preserving treasured family lands and natural areas.

Other studies point to protected open lands as productive assets that can generate significant economic value.  A comprehensive study recently completed for the Delaware Valley Regional Planning Commission and GreenSpace Alliance in Southeastern Pa, links protected open space to enhanced property values, growth in local economies, lower costs of everything from health to recreation and improved air and water quality.  The quantitative findings of this study confirm hundreds of millions of dollars in both savings and realized income to the region’s residents, municipalities and businesses, as a direct result of saving open space (download the full report at www.greenspacealliance.org)

Unlike the southeastern part of Pennsylvania where more than twenty years of urban sprawl has reduced open lands to fragmented patches, Northeastern Pa. is still blessed with large tracts of agricultural and relatively undisturbed lands.  This scenario is, however, changing overnight as natural gas development gobbles up family farms, scenic vistas and natural habitat.  Because of these rapidly occurring changes, protecting open lands from degradation and destructive uses has never been more important in the Northern Tier.

Is a Conservation Easement Right for Your Land?

Land protection is beneficial both economically and environmentally, but is it right for your lands? Whether you own hundreds of acres or just a few, your land can qualify for conservation easement protection.

The E.L.Rose Conservancy of Susquehanna County, a non-profit land trust organization, assists property owners in developing conservation easements to protect the conservation values of their lands while maintaining the owner’s right to own, sell, enjoy and make a living off the land.  The Conservancy has been protecting land in Susquehanna County since 1987.   Through a combination of land purchases, donations and easements, they have protected hundreds of acres of open space– both agricultural lands and natural habitat.   Their trained land protection specialists can determine if your lands meet the established criteria for easement protection.  Of particular note, lands leased for natural gas exploration are not excluded.  For properties with non-surface gas exploration leases, a conservation easement can protect  your land’s environmental and agricultural value.  Lands with surface gas leases may also qualify for easement protection with some restrictions.

What will happen to your land?  Start the conversation and we can help to put a conservation easement plan in place.  Contact:  Patty Bloomer 607-729-0181

We protect natural resources through land and water conservation,
provide sanctuary for wildlife, and preserve scenic beauty.