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 What
are the Legal Requirements?
New York State law authorizes the grant
of conservation easements to qualified private organizations.
It requires that the county planning authority review the
easement and give non-binding advice about the easement’s
effect on the county’s comprehensive plan, if one exists.
Finally, the law requires that the deed of conservation easement
be duly recorded.
Federal law governs only the tax treatment
of a conservation easement as a charitable gift. While you
should consult your attorney or a person knowledgeable of
federal requirements, in general the following major rules
apply in order to receive a tax benefit:
- The conservation easement must be granted in perpetuity
(mortgage and/or contract holders must agree to subordinate
to the easement).
- The easement must provide at least one of the following
three conservation purposes:
- Protection of relatively natural habitat for fish,
wildlife, plants or similar ecosystems,
- Preservation of open space (including farmland or
forest land) for (1) scenic enjoyment of the general
public and/or (2) significant public benefit pursuant
to a clearly delineated government policy,
- Preservation of land areas for the education of or
outdoor recreation by the general public.
- The easement must be granted to a qualified organization.
- The easement must prohibit all surface mining. If the
easement donor does not own all of the mineral rights, the
possibility of surface mining must be determined "so
remote as to be negligible."
- Resource data documenting the conservation values of the
property must be collected prior to donation of the easement.
What are the Steps in Donating a Conservation
Easement?
Once the decision has been made to donate
a conservation easement, the landowner and the Nassau Land
Trust agree on the specific terms of the easement. NLT prepares
a resource report to document the condition of the property
at the time the easement is donated. If the landowner intends
to apply for a charitable income tax deduction, he or she
must secure a subordination of any mortgage or contract holders,
procure an appraisal and assure that mineral right ownership
does not inhibit the placement of the conservation easement.
Next page: Tax
advantages >>
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Protecting your land
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