Allegheny Land Trust
Helping local people save local land

Conservation Options and Protection Methods

New Federal Law Gives Fairer Tax Benefit for Voluntary Conservation Agreements

Generous landowners who donate voluntary conservation agreements, also known as conservation easements, to the Allegheny Land Trust are inspired by many things: they love the Southwestern Pennsylvania landscape, they feel connected to their land, and they wish to leave a legacy for future generations.  This inspiration is at the heart of our work to permanently protect valuable natural resources.  But for almost all of our donors, donating a conservation easement is a major financial decision, and the federal income tax deduction that comes with a donation helps make easements possible for landowners in our community.

Congress recently passed a new law that enhances the tax benefits of protecting private land for many landowners.  The legislation improves the tax incentive for conservation easements by allowing conservation easement donors to:

• Deduct up to 50% of their adjusted gross income in any year (up from 30%);
• Deduct up to 100% of their adjusted gross income if the majority of that income came from farming, ranching or forestry; and
• Continue to take deductions for as long as 16 years (up from 6 years).

Congress also passed tighter appraisal standards for such gifts and stronger penalties for appraisers who violate the standards.

The Land Trust Alliance (LTA) led the effort to get Congress to approve this new law.  LTA is a national organization that sets national standards for conservation organizations like Allegheny Land Trust, provides training and networking opportunities, and represents the land trust community in Washington, DC.  Allegheny Land Trust has been a member of LTA for 10 years.

Each day we are touched by the generous and inspired landowners who work with us. The new law will make it easier for others in our community to build on their love of the land and permanently protect local land.  To learn more about these new incentives to protect your land with a conservation easement please contact the Allegheny Land Trust office by email, admin@alleghenylandtrust.org, or phone, 412-741-2750.

 

Conservation Options

Land trusts and landowners as well as government can access a variety of voluntary tools for conserving special places.  The basic tools are described below.

A land trust can acquire land. The land trust then takes care of the property as a wildlife preserve, public recreation area or other conservation purpose.

A landowner and land trust may create an agreement known as a conservation easement. The easement limits certain uses on all or a portion of a property for conservation purposes while keeping the property in the landowner’s ownership and control.

Landowners can donate land and easements.  These charitable gifts may qualify the donor for federal tax deductions.  In unusual cases, the land trust may offer to purchase a property interest for an agreed-to price using donations from others.

A land trust can acquire a property, place a conservation easement on it, and then sell it to a conservation buyer—someone who wants to own a conserved property.

Sometimes a municipality or state agency wishes to conserve a property but can’t meet the financial or timing demands of the landowner.  A land trust can help by acquiring and then donating or selling the land to the government when the government is ready

In a bargain sale the landowner and land trust negotiate a purchase price below fair market value.  Bargain sales can be an attractive option for landowners who wish to preserve their land but who also need income from the transaction.  Although a landowner will receive more from a sale at fair market value than from a bargain sale, certain tax benefits can substantially reduce or eliminate the disparity.

For a great primer on Conservation Tactics, visit the Pennsylvania Land Trust Association website Conservation 101.