Easement Restrictions
PACE Statutes
Easement Template
(doc)(92.5kb)
Questions and Answers
Features and Benefits
Determine Your Easement Value
Tax Advantages
Application
(pdf)
Scoring Questionnaire
(pdf)
Evaluation Criteria
Program Status
State Easement Map
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PACE Program - Tax Advantages
Landowners may donate a conservation easement, which is a tax-deductible, charitable gift, provided the easement is perpetual and donated exclusively for conservation purposes. Conservation purposes include preserving open space and farmland.
The example below demonstrates possible tax benefits of donating a conservation easement.
Example: a 200-acre farm
* Appraised at fair market development value
$2,500 per acre = $500,000
Estimated farmland restricted value $1,200 per acre = $240,000
Potential tax-deductible charitable gift value $1,300 per acre = $260,000 |
The landowner is eligible to deduct an amount equal to 30% of adjusted gross income each year for a total of six years or until matching the value of the gift.
For the purposes of this example, the landowner has an annual federal adjusted gross income of $100,000. Therefore, the landowner may deduct $30,000 a year for the next six years if the income does not change.
Six years at $30,000 amounts to a $180,000 total federal tax deduction.
NOTE: State income tax deductions for charitable gifts follow the same guidelines as for federal tax deductions. Thus, the potential state tax deduction is an additional $180,000.
Individual tax situations differ: therefore, you should seek legal counsel for specific details.
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