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The GCTC offers landowners a financial incentive for protecting their lands, utilizing a state income tax credit. Protection can be achieved either through fee-simple donations to conservation organizations, or through conservation easements that place permanent restrictions on how the property can be used.
Easements are treated as a recovery of the basis of the property first, with any excess proceeds treated as capital gain, which is taxed at a lower rate than ordinary income. The basis of property that offsets an easement is limited to the basis of the affected acres or square footage.
Easements that can qualify for deductions Easements that protect natural habitats for fish, wildlife or plants. Easements that preserve land for public recreational or educational use. Easements that preserve open space, or undeveloped land. Easements that preserve land or certified historic structures.
Conservation easements can provide docHub tax benefits to property owners, including income tax deductions and property tax reductions. In some cases, conservation easements can also increase the value of a property.
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