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Recommended Readings
Conservation Options: A Landowner’s Guide
For anyone who wants to learn about the tools and tax benefits of private land conservation, this 57-page booklet explains it all. The guide provides valuable information about how to conserve open spaces, including dollars-and-cents examples of the tax benefits of open space protection.
* Revised with 2003 tax information
* Updated resource lists
Click here to purchase the guide.
Links for Landowners
Land Trust Alliance Web site
Upper Oconee Watershed Network
Tax Incentives for Donations of Conservation Lands
1. Federal Income Tax Benefits for the Donation of Conservation Land: (fee title or easements)
HR 1831 and S 812 may extend incentives for tax years 2008-09 into FY2010. These terms allow a deduction of up to 50 percent of the donor’s adjusted gross income (AGI) for donations of qualifying conservation easements that can be used over a 16 year period. Qualifying farmers and ranchers (tax payers who earn most of their income from farming or ranching) can deduct up to 100 percent of AGI. Donations of fee title are eligible for a deduction of up to 30 percent AGI and can be used over 6 years. If Congress does not act on these initiatives, incentives will revert to their 2007 levels, which still allows a 30 percent AGI deduction for qualifying easement donations, among other terms.
2. State Income Tax Benefits for the Donation of Conservation Land: (fee title or easements)
In 2006, House Bill 1107, known as The Conservation Tax Credit Act of 2006, was passed by the General Assembly and signed by Governor Perdue and amended through HB 1274 in 2008. Donations of land or conservation easements meeting state conservation purposes qualifies donors for a state income tax credit up to $250K (individual), $500K (corporation) or $1M (partnership); The donor has 10 years to use the credit. The law provides for a credit (which is better than a deduction) on Georgia state income tax of 25 percent of the donated value for qualifying lands.
3. Estate Tax Benefits:
Donating property or a conservation easement on property will likely reduce the value of an estate, and thereby reduce or even eliminate estate taxes for heirs; In a large estate, as much as 55 percent of the property value is taxed and payable to the Federal government within 9 months of death. A conservation easement may help avoid a forced sale of land to pay taxes and keep the property in family ownership and management.
4. Property Tax Benefits:
The assessed value of a property may be reduced after placement of a conservation easement restricting future use on it thereby reducing property taxes; however, a reduction of assessed value is at the discretion of the local tax assessor. The Conservation Use Valuation Assessment (CUVA) programs offered by County’s tax assessors provide property tax reductions, but because the associated covenants are temporary (10 years), donors may not claim any of the other above incentives.