What is a Conservation Easement?

A conservation easement provides for the permanent preservation of land by restricting real estate development, commercial and industrial uses, and certain other activities on a property. They are considered by the IRS to be charitable donations, which create a legally enforceable land preservation agreement between a landowner and a qualified land protection organization (often called a "land trust"), or a government agency (municipality, county, state, federal), for the purposes of conservation of a natural environment.

Landowners who donate a "qualifying" conservation easement to a "qualified" land protection organization under the regulations set forth in 170(h) of the Internal Revenue Code may be eligible for a federal income tax deduction equal to the value of their donation. The value of the easement donation, as determined by a qualified appraiser, equals the difference between the fair market value of the property before and after the easement takes effect.