From the Land Trust Alliance (www.lta.org):
President Signs into Law Expansion of Tax Incentive for Conservation
Applies to 2006 and 2007 Only
Kentucky Congressional Delegation Supports HR-4, Pension Protection Act of 2006
 On
August 17, President Bush signed into law a tremendous expansion of the
federal tax incentive for conservation easement donations providing a
significant victory for conservation.
Land conservation tax incentive adjustments that apply to 2006 and 2007
only were included in HR-4, The Pension Protection Act of 2006. A
coalition of land trusts and other organizations to include the Land
Trust Alliance and the Piedmont Environmental Council help secure
passage of the bill.The newly-enacted tax reconciliation bill helps family farmers and other moderate-income landowners get a significant tax benefit for donating voluntary conservation easement that restricts future development to protect an important public resource. The conservation tax incentive, in place for 26 years, has been adjusted to:
Learn what this means for land trusts and land conservation! Read Stephen J. Small's Perspective Oldham Ahead believes the incentives can result in a significant increase in land under conservation easements for Oldham County, helping to secure the rural heritage of the county and its overall its quality of life, and attract beneficial economic development for the county. Oldham County Land StewardsOur research reflects that since 1999, nine individuals and/or families have donated and placed nearly 2,500 acres into conservation easements in Oldham County. We salute each individual who has made these lasting gifts to preserve Oldham County’s irreplaceable equine and agriculture heritage.
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Conservation Easements
What
is a conservation easement?
A
conservation easement is a legal contract between a land trust, a governmental
entity, or other qualified organization and a willing landowner.
The easement permanently limits uses of the land in order to protect its
conservation values. A Deed of
Conservation Easement must be recorded at the County Clerk's Office, and the
restrictions run permanently with the land.
A conservation easement protects the land from unlimited subdivision and
development while also protecting the rights of private ownership.
Examples
of uses generally permitted by a conservation easement:
-
continued agricultural use;
-
wildlife and aquatic restoration efforts;
-
sale or gift of the property;
-
selective timber harvest.
Examples
of uses generally restricted by a conservation easement:
-
subdivision for residential development;
-
non-agricultural commercial activities;
-
surface mining;
-
elimination of wildlife or fisheries habitat protected by the easement.
The
landowner continues to own the land and continues to pay taxes on the land.
An easement does not necessarily grant public access, which is an
important safety factor for many agricultural producers.
Public access (e.g. a trail easement) is a potential item for negotiation
within certain easements.
How
is the conservation easement protected permanently?
The
easement holder (e.g.: a land trust or governmental entity) is responsible for
ensuring that the terms of the easement are met.
The holder monitors the property on a regular basis, remains in contact
with future landowners, and if necessary, is prepared to defend the easement
using legal means.
Monitoring
and defending easements is a permanent liability for the easement holder.
Therefore, the easement holder establishes a dedicated fund to assist
with those perpetual expenses.
What
is a "Purchase of Development Rights" (PDR) program?
A
Purchase of Development Rights program is based on
the premise that a property owner has a 'bundle' of rights that can be
separated. The development rights
refer to the landowner's right to develop his or her land for commercial,
industrial, or residential purposes. A
PDR program enables landowners to separate and sell their rights to develop land
from their other property rights. The
willing landowner is financially compensated for the development rights, but
they retain all other rights of ownership, including the right to farm the land
or transfer the land to other ownership.
A
purchase of development rights can take the form of a purchased conservation
easement, or can be structured as a "bargain sale" of the development
rights. This "bargain
sale" stretches public dollars and allows the landowner to claim a
charitable contribution and potential income or estate tax benefits.
In either case, the landowner is able to cash in a portion of the equity
in their land, creating a financial alternative to selling the land for
development purposes.
To Read About a major conservation easement in Oldham County
