CONSERVATION EASEMENTS
for Virginia Landowners
Conservation easements are a vital tool that landowners can proactively use to perpetually protect their farms, forests, and open spaces.
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Once a conservation easement is placed on a property, that property is forever protected from large-scale development, which is outlined in the terms of easement agreed upon between the landowner and the holder.
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Conservation easements can be valuable, both in peace of mind for the future of your land and in terms of financial benefits.
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You'll find an outline of the basics of easements below. Please don't hesitate to reach out to us with any questions!
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Please note that there are also tax benefits for gifts of land in fee simple for conservation purposes.
AN OVERVIEW OF EASEMENTS
Conservation Partners works with landowners every step of the way to help the land they love, forever!​
WHAT IS A CONSERVATION EASEMENT?
Simply put, a conservation easement is a legal agreement between a landowner and an easement holder (a non-profit organization or government agency) that establishes protections of the unique characteristics of the property. A conservation easement is legally binding on all future landowners and will protect the land from inappropriate development and uses in perpetuity while allowing the landowner to retain private ownership.
WHY DO PEOPLE PROTECT THEIR PROPERTIES WITH
CONSERVATION EASEMENTS?
You donate an easement if you love your land and want to permanently protect the things you love about it, such as its scenic beauty, wildlife habitat, historic integrity, a place of family memories, or its ability to provide a farming or forestry livelihood. These characteristics are your land's "conservation values."
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A conservation easement is considered a charitable donation of some or all of the development rights of the property. The protection of these conservation values not only benefits you as a landowner, but also the general public by providing agriculture, forestry, clean water, scenic views, wildlife habitat, and so on-- benefits that would be lost forever if the land were developed. The federal and many state governments offer income and estate tax incentives that reward donors of qualifying conservation easements for this charitable contribution of development rights that benefit the public.
WHAT RIGHTS WILL I GIVE UP IF I DONATE AN EASEMENT?
WHAT RIGHTS WILL I RETAIN?
Within reason and subject to agreement with the conservation easement holder, there can be flexibility in the terms of a conservation easement. Generally, you give up the right to impair the conservation values of your land. Usually, the most economically significant right that you give up is the right to develop your land for residential subdivision or harmful commercial uses.
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After you have protected your land with a conservation easement, you can still sell it or leave it to your kids, live on it, farm it, and hunt, fish, and recreate on it. You could continue to timber with best management practices. You could even retain the right to build additional farm buildings, houses, or divide the property a time or two.
WHAT ARE THE FINANCIAL INCENTIVES?
An easement donor can benefit from various federal and state income and estate tax incentives.
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The federal income tax deduction can be used to reduce the donor's adjusted gross income (AGI) by up to 50% per year for 16 years, or until it's used up. Easement donors who qualify as a farmer or rancher, including timber producers, can use the deduction to reduce their AGI by up to 100% for sixteen years. To qualify, the producer must receive more than 50 percent of his or her gross income from "the trade or business of farming."
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The state tax credit in Virginia can be used to offset the donor's Virginia income tax liability dollar-for-dollar or can be gifted or sold. The ability to sell these tax credits to other Virginia taxpayers for cash is often very appealing to easement donors who do not have significant Virginia income tax liability. Many farmers use tax credit sales proceeds to retire debt, purchase new equipment, or expand their operations. An important part of our work at Conservation Partners is to facilitate the sale of Virginia's transferrable Land Preservation Tax Credits for conservation easement donors.
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By state code, county real estate assessments must consider if your conservation easement has lowered the market value of your land. Some counties offer substantial real estate tax relief for conservation easement properties.
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If certain requirements are satisfied, a percentage of the after-easement value of the land may be excluded from a landowner's estate for estate tax purposes.​
WILL YOUR LAND QUALIFY?
Different easement holders have different criteria for determining which properties they work with, so it's hard to generalize. Any undeveloped land could be eligible, whether it's forest, wetland, meadow, or cropland. Reach out to Conservation Partners to discuss what your options might be!
HOW DO I BEGIN?
Interested landowners often ask us, "Is it a lot of trouble to donate an easement?"
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Granting a conservation easement is one of the most significant things a landowner can do, and it should be taken seriously and done correctly. Creating a proper easement donation can be time-consuming and, sometimes, complicated and overwhelming.
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Our job is to help you coordinate the multi-faceted process of a conservation easement donation with full-service consulting and process facilitation. We guide you through each step of the process, including marketing and selling your Land Preservation Tax Credits.
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To answer the landowners: It doesn't have to be if you work with Conservation Partners.
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Reach out to us today!
EXPERTS IN GRANT APPLICATIONS
We are happy to help you explore grant opportunities that your property may be eligible for. We work to expedite grant application processes like that of Agricultural Land Easements. Grant funding can significantly increase the financial return of a conservation easement. Let us know if you're interested in grant opportunities!