What is a Conservation Easement?

A conservation easement is a legal agreement between a land owner and a land trust or government agency which permanently restricts uses of land in order to protect its conservation or scenic values. The owner continues to own the restricted land and may sell the land or pass it on to heirs subject to the restrictions.

The land trust is responsible for ensuring that the easement�s terms are followed. The easement may apply to just a portion of the land owner�s property and need not require public access.

If the donated easement benefits the public by permanently protecting important conservation resources and meets other federal tax code requirements, it can qualify as a tax-deductible charitable donation. The amount of the donation is the appraised difference between the land�s value with the easement and its value without the easement.

Perhaps most important, a conservation easement can be essential for passing land on to the next generation. By removing the land�s development potential, the easement lowers its market value, which in turn lowers any estate tax.