Land Protection FAQ
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Land protected by conservation easement.
Photo by James Bleecker

What is a Conservation Easement? Conservation easements are legal agreements that allow landowners to ensure permanent protection of the natural characteristics of their property while continuing to live on, utilize, and enjoy their land.  Through a conservation easement, a landowner voluntarily donates the majority or entirety of his/her development rights to a qualified nonprofit land trust, such as CLC, or a governmental entity.

There are six important points to understand about CLC's conservation easements:           

  1. They do not involve a transfer of title.  The property is still owned by the easement donor.  The landowner can sell, lease, and mortgage land protected by a conservation easement.  The landowner can still farm or conduct conservation forestry on the land and is not in any way required to allow public access.

  2. They often entitle landowners to significant state and federal income tax deductions.  For donated easements, the landowner may be able to deduct the value of the conservation easement against as much as 30 percent (and in some cases 50 percent) of their adjusted gross income for up to six years, beginning in the year the easement is donated. For easements donated in 2006 and 2007, new federal rules may qualify donors for significantly increased tax benefits.  However, if a landowner protects only a portion of the property, the deduction may be substantially reduced (the landowner should discuss this with his/her financial advisor).

  3. They do not prohibit all development.  A limited number of residential dwellings, including their supporting structures (e.g., recreational buildings, guest houses, tennis courts, agricultural buildings, garages, storage sheds, and swimming pools) may be allowed.  Future development is located to minimize any negative impact on the land resources being protected.  It should be noted that the greater the number of residential dwellings retained under the terms of the easement, the smaller the landowner’s tax deduction likely will be.

  4. The property stays on the tax rolls.  While a conservation easement does not necessarily lower assessed value of property in Columbia County, it does not prohibit the landowner from placing the land under the agricultural or forestry “current use” programs and receiving a property tax reduction.  The conserved value of each protected property will be evaluated by the local assessor. Beginning next year (2007), however, a new New York State Tax Credit will give landowners whose land is restricted by a conservation easement an annual refund of 25% of the property taxes paid on that land, up to $5,000 per year. 

  5. They are tailored to meet each landowner's individual vision for his/her land.  The landowner works closely with CLC to develop an easement that meets the landowner’s goals for land protection.  Public access is not required.  However, some landowners elect to establish a public trail as part of their conservation easement.  This generally increases their income tax deduction.

  6. CLC staff and board will maintain complete confidentiality of all easement negotiations, unless the landowner requests that we inform identified individuals in the community.  The easement becomes public knowledge after it is filed at the county clerk’s office.

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What are the Terms of a Conservation Easement?
A conservation easement details the uses that are compatible and incompatible with the conservation objectives of the landowner and CLC.  It is a voluntary, legal agreement between a landowner and CLC.  No two conservation easements are exactly alike, as each is tailored to the unique character of the land and the conservation goals of the landowner(s).

The following are general examples of the types of uses that are generally compatible with a conservation easement:

  • Continued agricultural and forestry use

  • Construction of buildings, fences, water improvements, and other additions that are needed for agriculture

  • A limited number of additional residential dwellings sited so as to be compatible with conservation objectives; the easement does not control size, color or design of houses

  • Wildlife and fisheries protection

  • Habitat restoration and enhancement projects

  • Selling, gifting or other methods of transferring parcels, subject to the terms of the easement

  • Landowner control of access

  • Public access, should this be something the landowner wishes to permit and ensure for the long-term

  • Recreation and education.

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What are the Legal Requirements?

New York State law authorizes the granting of conservation easements to qualified private organizations such as the Columbia Land Conservancy or to municipalities.  It requires that the deed of conservation easement contain a legal description of, or reference to, a recorded map of the property.  The conservation easement must be duly recorded, and a copy must be forwarded to the New York State Department of Environmental Conservation.  It authorizes the holder of a conservation easement (i.e. the land trust or municipality) to inspect the property to assure long-term compliance with the restrictions, and to enforce the terms of the easement, if necessary.  


The Columbia Land Conservancy operates in compliance with the Land Trust Alliance Standards and Practices.

 

Federal law governs the income tax treatment of a donated conservation easement as a charitable gift.  While easement donors should consult their attorney or tax advisor, in general, the following major rules apply regarding eligibility for income tax benefits:

  1. The conservation easement must be granted in perpetuity, and mortgage and/or lien holders must agree to subordinate to the easement prior to its completion.

  2. Pursuant to Section 170(h) of the Internal Revenue Code, the easement must address at least one of the following three conservation purposes:

    • Preservation of open space (including farmland or forestland) where such preservation is (a) for scenic enjoyment of the general public or (b) pursuant to a clearly delineated governmental conservation policy.  In either case, the easement must provide a significant public benefit.

    • Protection of relatively natural habitat for fish, wildlife, plants or ecosystems.

    • Preservation of land areas for the outdoor recreational and educational use by the general public.

  3. The easement must be granted to a qualified organization.

  4. The easement must prohibit all surface mining. If the easement donor does not own all of the mineral rights, the possibility of surface mining must be determined “so remote as to be negligible.”

  5. Resource data documenting the conservation values of the property must be collected prior to donation of the easement.  CLC compiles a baseline documentation report, which depicts the existing condition of the property at the time the easement is donated.

Landowners need to check with their local towns to ensure that a permitted use in the easement (such as the construction of a guest house) is permitted by zoning.  

  

In addition, the land trust or municipality must be able to uphold the terms of the conservation easement in perpetuity.  In order to ensure that the Columbia Land Conservancy can adequately meet this long-term responsibility, CLC requests that landowners make a contribution toward the organization’s conservation easement stewardship endowment.  In addition, it requires that a small transfer fee be paid to the Conservancy each time the protected property changes ownership until a predetermined total amount is met for the property.  This fee is based on a percentage of the property’s sale price and is used to fund the conservation easement stewardship endowment. 


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What are the Potential Tax Benefits?
When a conservation easement meets the federal requirements for a charitable gift, the donor of the easement may be entitled to certain tax benefits.  Click here to learn more about the potential tax benefits of a donated conservation easement.  

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 What are the Steps in Donating a Conservation Easement?

  1. Landowners should contact a CLC project manager at (518) 392-5252.

  2. CLC staff will visit your property to assess whether the land meets CLC's conservation criteria.  

  3. CLC staff work with the landowner(s) to agree on the general terms of the easement and to determine the land planning for the property.

  4. A deposit is required to start preliminary mapping work and the first draft of the conservation easement document.

  5. CLC’s Board of Trustees must approve every easement donation proposal.

  6. Landowners are advised to seek independent legal, financial, and/or tax advice.

  7. CLC will initiate a limited title search on the property to determine legal ownership, liens, mortgages, mineral or other leases, water rights and/or other encumbrances.  Any mortgages or encumbrances will need to be subordinated by the lending institution.

  8. CLC will draft the easement and create an accompanying conservation easement map.  Each easement is tailored to the specific property.  The easement identifies important conservation values to be protected benefits to the public.  It allows only permitted uses and/or reserved rights that will not significantly impair the important conservation values of the property.  The easement contains only restrictions that the land trust is capable of monitoring and that are enforceable.

  9. A baseline documentation report, depicting the existing condition of the property at the time the easement is donated, is assembled.

  10. If landowners donate a conservation easement and wish to apply for a potential tax deduction, they must procure a certified appraisal documenting the value of the conservation easement donation within the same tax year of, but no more than 60 days prior to, the donation.  An appraisal is not needed at the time of closing.

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What Happens after the Easement is Completed?

Once a conservation easement is signed and filed at the county clerk’s office, CLC and the landowner begin a working partnership.  Landowners continue to make all of their property management decisions pursuant to the conservation easement.  CLC believes that landowners are the best stewards of their land.  We serve as a community resource and are available to answer land management questions.  CLC maintains regular contact with landowners and, when possible, provides them with information on property management and/or referrals to resource managers.    

 

CLC has a responsibility to ensure that the goals of each conservation easement are upheld in perpetuity.  In order to accomplish this, CLC staff conduct annual monitoring visits and site visits to answer any questions landowners might have about their easement, exercising their reserved rights, or CLC’s programs and projects.  These visits foster good communication between the Conservancy and the landowner. 

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Columbia Land Conservancy · P.O. Box 299 · 49 Main Street · Chatham, NY 12037 · (518) 392-5252