Conservation Easements & Tax Incentives

Forested conservation easement property. Conservation easements are one of the best tools in our 'conservation toolbox'. CFPA currently holds over 1,700 acres in conservation easements throughout Connecticut.

The Land Trust Alliance (LTA), one of CFPA's national partners, defines an easement this way:

"The most traditional tool for conserving private land, a "conservation easement" (also known as a conservation restriction) is a legal agreement between a landowner and a land trust or government agency that permanently limits uses of the land in order to protect its conservation values. It allows landowners to continue to own and use their land, and they can also sell it or pass it on to heirs."

Conservation easements are flexible documents that are drafted as collaboration between the landowner and the easement holder and are carefully crafted to meet the needs of both the landowner and the protection of the conservation resources. These easements can be donated, sold at a bargain, or sold at full value. There are potential significant tax advantages for donations and bargain sales (pending advice of your tax advisor).

Our conservation staff specializes in working with working forest landowners and landowners with large forested tracts. While CFPA does not have a large amount of funds to purchase easements outright, we do have the expertise to collaborate with landowners to apply for grants and other funding sources. While our grant funding is limited, there are some exceptional tax incentives available for use through 2009 (and hopefully beyond) that makes conservation donations viable for many people.

The conservation easement tax incentive has been extended through 2009. This incentive allows up to 50% of income to be deducted in a given year, and deductions can be carried forward for 15 years.

The LTA provides a FAQ page on this incentive with examples of potential tax savings.

CFPA has a number of educational resources available.  These include:

  • Updated Using the Conservation Tax Incentives brochure from the LTA.  Our office has hard copies available to to members and landowners, and/or PDF copies can also be downloaded. 

  • Conserving Your Land brochure also from the LTA (2008).  Conserving Your Land presents an overview of conservation methods for private landowners. It’s ideal for handing out to landowners! The newly redesigned handout provides helpful information on Conservation Easements and Conservation Options for Private Landowners.

Our staff is available for consultation on site or in our office.  Please contact Eric Hammerling at (860) 346-2372 or ehammerling at ctwoodlands dot org.