Land Donation Tax Credits

Summary of State Income Tax Credits for Land Donations (as of August 2006)

California:
Title and Summary: Natural Heritage Preservation Tax Credit Act
Statute and Year Enacted: Sec. 37000 et seq 2000
Easement/Land Type: Five designated types of land, eligibility determined by Board.
Type of Donee: Government agency or non profit
Amount of Credit: 55% FMV Includes bargain sales
Individual Limit: No
Carry Over: 7 years
Fiscal Cap: $100M over 5 years
Transfer or Refund?: No
Governing State Agency: Wildlife Conservation Board

Colorado:
Title and Summary: Credit Against Tax – Conservation Easements
Statute and Year Enacted: Sec. 39-22-52 1999
Easement/Land Type: Easements only.
Type of Donee: Government agency or designated non-profit
Amount of Credit: 100% FMV of  1st $100k, 40% of next $400k
Individual Limit: $100,000 + $160,000 = $260,000, up to $20k as a refund
Carry Over: 20 years
Fiscal Cap: No
Transfer or Refund?: Refund up to $20K per year provided state has surplus, can transfer credit to 3rd party
Governing State Agency: Dept of Revenue may enact rules for implementation

Connecticut:
Title and Summary: An Act concerning Various Tax Reductions, Exemptions and Credits
Statute and Year Enacted: P.A. 99-173, Sec. 47 1999
Easement/Land Type: Any land or interest in land, including bargain sales. Corporate donations only.  
Type of Donee: Government agency or nonprofit
Amount of Credit: 50%
Individual Limit: No
Carry Over: 10 years
Fiscal Cap: No
Transfer or Refund?: No
Governing State Agency: No

Delaware:
Title and Summary: Land and Historic Resources Tax Credit
Statute and Year Enacted: 30 Sec. 1801 1999
Easement/Land Type: Any land or interest in land conveyed for the purpose of open space, natural resource or biodiversity conservation or historic pres., must meet req or 26 USC 170
Type of Donee: Government  agency or non-profit
Amount of Credit: 40% FMV
Individual Limit: $50,000
Carry Over: 5 years
Fiscal Cap: $1M per year Total of $10 M over 10 years
Transfer or Refund?: No
Governing State Agency: Dept. of Natural Resources and Environment must accept application for certification of the donation

Georgia:
Title and Summary: Income tax credit; imposition, rate, and computation; real property; amend
Statute and Year Enacted: Code 48-7-29.10 Apr 21, 2006
Easement/Land Type: Any conservation land pursuant to Chapter 22 of Title 36 and conservation easements, puruant to Code Section 36-22-2. 
Type of Donee: State, county, municipality or charitable nonprofit
Amount of Credit: The lesser of $500,000 or 25% of the FMV
Individual Limit: $500,000
Carry Over: 5 years
Fiscal Cap: No
Transfer or Refund?: No
Governing State Agency: Department of Natural Resources

Maryland:
Title and Summary: Tax Credit for Donations of Conservation Easements
Statute and Year Enacted: Enacted 2001
Easement/Land Type: Any land that will serve the public interest– woodlands, wetlands, farmland, historic areas, wild and scenic rivers, undisturbed natural areas
Type of Donee: Designated non-profits
Amount of Credit: 100% of appraised value of easement
Individual Limit: $5,000/yr up to $80,000
Carry Over: 15 years
Fiscal Cap: No
Transfer or Refund?: No
Governing State Agency: No

Mississippi:
Title and Summary: An Income Tax Credit for Donations of Land for Priority Conservation Sites and Riparian Corridor Areas
Statute and Year Enacted: HB 701, 2003 Session; Signed March 23, 2003
Easement/Land Type: Lands to protect stream bank habitats and  stability and to protect high biodiversity sites with exemplary natural communities or species of special concern or T/E species. Must meet req or 26 USC 170
Type of Donee: Government  agency or qualified non-profit
Amount of Credit: 50% of "Allowable Transaction Costs" (e.g. appraisal, baseline report, legal documents & title costs)
Individual Limit: $10,000
Carry Over: 10 years
Fiscal Cap: No
Transfer or Refund?: No
Governing State Agency: The MS Streams Stewardship Program;  the MS Natural Heritage Program and the MS State Tax Commission

New Mexico:
Title and Summary: New Mexico Land Conservation Incentives Act
Statute and Year Enacted: Chapter 331, Laws of 2003
Easement/Land Type: Any land or interest in land conveyed for the purpose of open space, natural resource or biodiversity conservation, outdoor recreation, farmland and forest land pres., historic pres., and land conservation purposes. Must meet req. Sec. 170(h) Internal Revenue Code 1986.
Type of Donee: Government  agency or qualified non-profit
Amount of Credit: 50% FMV
Individual Limit: $100,000
Carry Over: 20 years
Fiscal Cap: No
Transfer or Refund?: No
Governing State Agency: Secretary of  Energy, Minerals and Natural Resources Department must certify eligible projects in consultation with the committee established by the Natural Lands Protection Act

New York:
Title and Summary: Conservation Tax Credit
Statute and Year Enacted: Section 606 Jan 1, 2006
Easement/Land Type: Conservation Easements
Type of Donee: Public or private conservation agency
Amount of Credit: 25% of real property taxes paid on land restricted by conservation easement.
Individual Limit: No
Carry Over: No
Fiscal Cap: $5,000
Transfer or Refund?: Rebate up to $5,000
Governing State Agency: Department of Environmental Conservation

North Carolina:
Title and Summary: Credit for Certain Real Property Donations
Statute and Year Enacted: Sec. 105-151.12 1983
Easement/Land Type: Any property useful for public beach access, access to waters or trails, fish and wildlife conservation or other similar land conservation purposes
Type of Donee: Government agency or non-profit
Amount of Credit: 25% FMV
Individual Limit: Originally $5,000 1989-amended to $250,000 for Ind.,  $500,000 for Corps
Carry Over: 5 years
Fiscal Cap: No
Transfer or Refund?: No
Governing State Agency: Dept. of Environment and Natural Resources must certify that property is suitable

South Carolina:
Title and Summary: South Carolina Conservation Incentives Act
Statute and Year Enacted: Sec. 12-6-3515 2000
Easement/Land Type: Land claimed and qualified for a federal deduction for a gift of land for conservation, as defined by Sec. 170 (h)
Type of Donee: Qualified conservation organization
Amount of Credit: 25% FMV
Individual Limit: $250 per acre, with a maximum credit of $52,500 per year
Carry Over: Carry-over allowed until all the value of credit is claimed
Fiscal Cap: No
Transfer or Refund?: Transfer allowed, but no refund
Governing State Agency: No

Virginia:
Title and Summary: Virginia Land Conservation Incentives Act of 1999
Statute and Year Enacted: Sec. 58.1-510 1999
Easement/Land Type: Land or interest in land conveyed for purpose of agricultural or forest  use, open space, conservation or historic preservation.
Type of Donee: Government agency or non-profit
Amount of Credit: 50% FMV
Individual Limit: $50K for 2000, $75K for 2001, $100K for 2002 and thereafter
Carry Over: 5 years
Fiscal Cap: No
Transfer or Refund?: Transferability added 2002
Governing State Agency: No