A conservation easement is a legal agreement between a land owner and a qualified organization such as a land trust, or government agency.  The Blue Mountains Conservancy is a qualified organization under the IRS code that governs 501(c)(3) non-profit organizations. 

The easement agreement places permanent restrictions on the use of the land.  These restrictions are intended to protect the conservation values of the property in perpetuity.  To meet IRS requirements, a conservation easement must identify at least one of four specified conservation values for the property. The four conservation values specified by the IRS are:

• to preserve land for outdoor recreation by or education of the general public
• to protect relatively natural habitat of fish, wildlife or plants
• to preserve open space
• to preserve historically important land or structures

Most farming, ranching or timber lands are eligible for conservation easement agreements under the provision for protection of open space.

Each easement agreement is written specifically to address the needs and desires of the owner, and to meet the conservation objectives of the owner and the land trust.  The land owner retains ownership of the land and continues to be responsible for payment of property taxes, liability insurance, control of noxious weeds, and any other fees associated with land ownership. The land owner may continue to live on, farm, ranch, or harvest timber from their land, as long as these practices are consistent with the land use agreements that are outlined in the easement deed.  The land owner may sell the land at any time.  An easement also may apply only to certain portions of a property while permitting development of the remainder.

The land owner may specify in the easement agreement whether s/he wishes to allow public access.  Public access is not required by the Blue Mountains Conservancy as a condition of accepting a conservation easement.  The land may continue to be farmed or used exclusively by the donor with no public access granted.

There are some important tax incentives that may accrue from granting conservation easements to a qualified land trust.  A conservation easement generally reduces the market value of a property by reducing its development potential.  This reduction in value allows families to reduce inheritance taxes and potentially enables heirs to retain property that would otherwise have to be sold to pay these taxes.  Conservation easements may qualify as a charitable gift and be deductible for federal income tax purposes.  The value of the gift must be established by a formal appraisal and is the difference between the fair market value of the property before and after donation of the conservation easement.

The role of the land trust is to hold the easement deed in perpetuity and to monitor the land to insure that the agreements are being honored.  The land trust can also provide expertise and guidance to land owners interested in restoration or enhancement of natural areas on the property.  If the owner wishes to allow public access, education or scientific research on the property, the land trust can help facilitate these practices.

If you think you may be interested in permanently protecting your land from development and potentially reaping the immediate tax benefits of granting a conservation easement, please contact the Blue Mountains Conservancy or another land trust in your local area.