A conservation easement is a voluntary contract between a landowner and a land trust, government agency or another qualified organization in which the owner places permanent restrictions on the future uses of some or all of their property to protect scenic, wildlife, or agricultural resources (conservation values). The restrictions usually limit the number of future home sites but can, and often do, limit other uses as well.

Conservation easements are specifically tailored to meet the needs of each landowner; few conservation easements look alike because few properties are the same, and few landowners want exactly the same provisions. The easement is donated by the landowner to the land trust, which then has the authority and obligation to enforce the terms of the easement in perpetuity. The landowner still owns the property and can use it, sell it, or leave it to heirs, but the restrictions of the easement stay with the land forever. If you are interested in learning about how to donate a conservation easement, download our summary.

TAX BENEFITS:

The donation of a conservation easement that permanently protects publicly significant conservation values can often qualify as a tax-deductible charitable donation. Because conservation easements reduce a property’s development potential, the market value of the property is reduced commensurately. The value of the donation is the difference between the property’s value with and without the conservation easement, as determined by an independent appraiser. In many instances, a conservation easement donor can enjoy significant income and estate tax savings, which can help offset the acquisition costs of a new property and help family members pass land from one generation to the next. In addition, protecting land with a conservation easement can reduce one’s property taxes. For more information about the tax benefits of donating a conservation easement, please contact the JHLT.