The gift of a conservation easement that meets federal tax code requirements is considered a charitable deduction, and the value of the easement can be deducted, within certain limits, from the donor's income. A qualified appraiser will calculate the value of the easement by assessing the value of the donor's land before the easement is given, then subtracting the value of the land after the easement is donated. For 2008 and 2009, the income tax deduction is limited to 50% of gross adjusted income in the year the easement is given. Any unused deduction can be carried forward over 15 additional years. Farmers who receive more than 50% of their income from agricultural activities can deduct up to 100% of their income.

PEC proveded the summary of the tax benefits of conservation easements for informational purposes only. Please consult your attorney and/or accountant for professional advice on the implications of an easement donation for your own tax situation.