Until recently, only large parcels of land were put into conservation easements.  An owner wishing to put his land into an easement had to show that by doing so it provided some benefit to the public:  by preserving a wildlife habitat, a scenic view, or even the public water supply, or by creating a buffer to national forests or conservation lands.

According to an article in the Wall Street Journal in August 1999, increased development pressure, the shortage of large tracts, and new tax laws passed in 1997 are changing all that.  Easements of one and two acres are becoming more common.

In Pennsylvania, the Lower Merion Conservancy focuses on five to 10 acre parcels, but recently attained an easement for a two acre parcel at a major intersection, for the purpose of preserving an important view shed.  A landowner in Cape Cod put a single acre into easement.

In addition to preserving open space, an easement provides property owners with significant income-tax, property-tax and estate-tax savings.  A conservation easement cuts the value of property by giving away building rights.  These rights are given up in a deed to a nonprofit charitable organization, such as a land trust, and their value is then deducted from the market value of the property for estate-tax purposes.  This difference can often mean that with an easement in place no estate tax is owed at the owner's death.

The gift of a conservation easement is considered a charitable donation, which an owner can deduct from his or her income taxes as well.  The deduction is usually limited to 30% of adjusted gross income, with any excess carried over for as many as five years.  But under certain circumstances the deduction can be as high as 50%.

Even small parcels can reap big tax benefits, says the Journal.  In Pennsylvania two acres of land in a subdivision deemed important to wildlife habitat cost a purchaser $300,000.  Development rights for the parcel, which were valued at $250,000, resulted in tax deductions for that amount for the purchaser at a rate of as much as 30% of income a year for six years.

Easements come with restrictions for future development that are binding to heirs and future buyers.  In crafting the terms of the easement, an owner should be careful to consider the needs of future generations.  These restrictions do not, however, render the land unmarketable.  Quite the contrary, they often enhance property values of adjacent properties, and can even make an entire neighborhood more desirable.

But tax benefits don't seem to be the primary motivation for people who put their land into easements.  People who have donated easements say it is the ability to leave a lasting mark that is the strongest incentive for them.  They are usually people who love the land and want to preserve the natural beauty of it for future generations.

· Home · Issues · Commonwealth Views · General Assembly News · National News · Economic Advantages ·
· Sweet Success · Resource Library · Organizational Resources & Links · I Wish I'd Said That · Membership · About Us ·