Land Protection FAQ
        Conservation Easements
        Public Conservation Areas
        Donating Land
        Bargain Sales
        Tax Benefits
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For additional information on possible tax advantages of charitable donations to the Columbia Land Conservancy, please see our page on planned gifts.  Please note, current Senate Finance Committee recommendations are pending that could change the tax implications for conservation transactions.  Click here for more information.

Donating Conservation Easements
Income Tax
Donated conservation easements may be treated as charitable gifts and their value can be deducted from the donor’s federal and state taxable income (see 26 U.S.C. 170).  For income tax purposes, the value of the easement donation is the difference between the land’s value with the easement and its value without the easement, as determined by a certified New York State appraiser.  The landowner may be able to deduct the value of the conservation easement against 50 percent of his or her adjusted gross income for up to 15 years, beginning the year the easement is donated.  

The 2008 Farm Bill includes provisions to extend  increased incentives for qualified  easement donations made January 1, 2008 through December 31, 2009.  Click here to learn more about how this might benefit you.

Estate and Gift Taxes
Conservation easements can be a significant and useful estate planning tool.  In many cases, conservation easements will result in a reduction of the property value, as determined by a certified appraiser.  The amount of such a reduction is unique to each property, but is generally the difference between the land’s value with the easement and its value without the easement.  The reduction in property value of the land can help to ease the financial burden of passing the property on to heirs; it can help reduce the amount of gift taxes as well as estate taxes owed as a result of the property transfer.

 

Corporate Income Tax
The income tax benefits of a conservation easement to a corporation are similar to those of the individual taxpayer, except that a corporation can deduct only up to 10 percent of the net income before the contribution deduction, per year, over six years after the donation of a conservation easement.

 

Local Property Taxes

Beginning next year (2007), a new New York State Conservation Easement Tax Credit will give New York State 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. It is available to all owners of easement-restricted land, regardless of when the easement was created, provided that the easement was wholly or partially donated to a land trust or a governmental agency.

 

Forms and instructions to file for this credit can be obtained at:

 

For Individual Taxpayers

Form IT-242: http://www.tax.state.ny.us/pdf/2006/fillin/inc/it242_2006_fill_in.pdf

Form IT-242 Instructions: http://www.nystax.gov/pdf/2006/inc/it242i_2006.pdf

   

For Corporations

Form CT-242: http://www.tax.state.ny.us/pdf/2006/corp/ct242_2006.pdf

Form CT-242 Instructions: http://www.tax.state.ny.us/pdf/2006/corp/ct242i_2006.pdf


A conservation easement may also lower  the assessed value of property in Columbia County, but not necessarily, since New York State grants full authority to local assessors in determining how land protected with a conservation easement will be assessed.

 

Landowners may notify their local assessors that an easement is in place and explain the terms of the easement.  Many landowners who protect their land also enroll in the Agricultural Assessment or 480-a Forestry “current use” programs and thus receive a property tax reduction.  Click here to view a copy of our Farm and Forest Landowner Bulletin for more information about Agricultural Assessment and other programs designed to encourage agricultural activities.

 

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Donating Property
 Donating land (with or without structures) can provide substantial federal and state income tax deductions, as well as possible estate tax benefits, while reducing capital gains taxes that would result from selling the property.  When a landowner chooses to donate the fee title of his/her land to CLC, the landowner may be able to take the full fair market value of the land (as determined by a certified New York State appraiser) as a charitable deduction (the landowner may wish to discuss this with his/her financial advisor).  In addition, the value of the land will be removed from the landowner's estate, reducing estate tax exposure.  Because the landowner no longer owns the property, he/she will no longer have to pay property taxes yet they will know that the property will be protected for future generations.  

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Donating Land or Conservation Easements by Will
Making a donation in your Will could significantly reduce estate taxes while ensuring your conservation goals are met.  However, donating land or conservation easements in your Will, rather than during your lifetime, means that you will not receive any income tax benefits and you will continue to be liable for property taxes.

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Donating a remainder interest in land
By donating a remainder interest, you can continue to enjoy your land and may be eligible for an income tax deduction when the gift is made.  The deduction is based on the fair market value of the donated property less the expected value of the reserved life estate.

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Bargain Sale
A Bargain Sale makes a conservation project more affordable for CLC and offers several benefits to the landowner: it provides cash from the sale, reduces capital gains tax exposure, and entitles one to a charitable income tax deduction based on the difference between the land’s fair market value (as determined by a certified New York State appraiser) and its sale price.

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