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Advantages
Conservation easement is basically an encumbrance — even including a transfer of usage rights (easement) — thus creating a legally enforceable land preservation agreement between a landowner and a government agency (municipality, federal, county, state) or an equal land protection organization for the purposes of conservation.
The owner of the land could give up the right to subdivide the land into building sites, while assuming the right to farm his land. The land that can be protected must have conservation significance, according to the IRS. The significance includes wetlands, forests, open areas and wildlife. The easement is fixed with the property and is binding on all owners and future owners. Conservation easement is a common way for landowners who want to keep ownership of their property and protect it for decades to come. The landowner completely gives up "development rights" but can continue to own and control the land according to the rights specified in the easement. These easements can be transferred by donation or by sale, and often bring substantial tax deductions. Ownership and possession of the land is possible due to the fact that the easement eliminates any development rights, this reduces the market value of the land, and also reduces estate Taxes.
 Savings
Conservation easements may provide substantial tax savings, due to the fact that the landowner receives a federal income tax deduction. The amount of the tax deduction is determined by the value of the easement. An appraiser will then determine the value of the easement and equals the difference between the fair market value of the property before and after the easement goes into effect.
Per the IRS, to qualify for this income tax deduction, the easement must be:
1) Perpetual
2) To be held by a qualified governmental or non-profit organization
3) To serve a valid "conservation purpose.
More Information On This Topic:
What is a Conservation Easement?
How We Work - Conservation Methods
American Land Conservancy
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