Conservation Easements: Conserving Land, Water and a Way of Life

A mix of fall flora and Cottonwoods in the wetlands of the Yampa River basin on The Nature Conservancy's Carpenter Ranch, west of Steamboat Springs, Colorado. @ Mark Godfrey/TNC

New Federal Law Enhances Conservation Tax Incentives

Conservation Easement Donors Can Reap Significant Benefits

New tax incentives are available for private landowners interested in protecting the important conservation values of their lands through the donation of conservation easements.

On August 17, 2006, President Bush signed into law the Pension Protection Act of 2006. This legislation contains a two-year provision that in 2006 and 2007 will enhance the tax benefits of protecting your land when you donate a conservation easement.

If you own land with important natural resources, donating a conservation easement to The Nature Conservancy can be one of the smartest, most cost-effective ways to conserve the lands and waters you love.

By donating a conservation easement, you can help fulfill your vision for your property and protect America’s natural heritage—while maintaining private property rights and possibly realizing significant tax benefits.
Summary of the Improved Benefits

For many landowners, the new law enhances the tax benefits of protecting private land. The legislation improves the tax incentive for donating conservation easements by allowing conservation easement donors to:

• Deduct up to 50 percent of their adjusted gross income in any year (up from 30 percent);
• Deduct up to 100 percent of their adjusted gross income if the majority of that income came from farming, ranching or forestry; and
• Continue to carry over unused portions of deductions for as long as 15 years (up from 5 years) after the initial year in which the deduction was claimed.

Note: These new tax incentives apply to conservation easements donated in 2006 and 2007.

Source: The Nature Conservancy

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