It is ironic that continued attempts to promote additional private conservation by the Land Trusts (Grantees of Conservation Easements) from across the United States were thwarted by the self proclaimed environmentally friendly Democratic administration of the late 90's.  Even more ironic is that after the year 2000, individuals were afforded increasing incentives to achieve real conservation value through the grant of conservation easements.  In the last five year or so easement benefits have been greatly and rightfully expanded.  (That is not an endorsement of Congress, by the way.  My approval rating of both parties, their antics, behavior, and party line politics, particularly in the last two years under Pelosi and Reed is far below the dismal and historic low 9% approval rating they "enjoy" nationally.)  

 The end result is conservation of over approximately 7 million acres throughout the United States.  Total acreage is growing rapidly.  It seems that in the case of conservation easements, as with so many other matters, achieving conservation was secondary, in my cynical opinion, to political desire using construed class separation as a vote magnet. But enough of political philosophies.

A synopsis of the evolution of conservation incentive is below.  This is not tax advice.  This simplistic listing is tempered by the absolute fact that benefits of the grant of conservation easement are different for each and every individual.  This is due to the differences in their tax and financial situations, and that each piece of land and location is unique.

• Under the old conservation easement laws one was allowed to deduct up to 30% of their Adjusted Gross Income¹ prior to computing their annual tax bill; that has been raised to 50%.
• Under the old law one could carry forward any tax benefits not realized for a period of 6 years; the current law provides for a carry forward of up to 15 years.
• Under the old laws there were certain limitations on and valuing an after easement (diminished) basis as the value of the property for an estate transfer and tax reasons.  Under current law, though, there are caveats, the reduced after easement value is the value, with stipulations for inheritance tax compilation.
• Under the new law, assuming a ranch or farm or owners thereof qualify, deductions can be up to 100% of adjusted AGI.

      ¹ Gross taxable income less standard deductions.

The quid pro quo to the above and other goodies is that standards for doing a good easement, arriving at donative value and receiving a tax benefit (or tax credit in the case of a state benefit) have tightened, less by regulation than by excellent self-policing by the Land Trusts.  Appraisal criteria, diminution (the percentage and amount by which a property's value is reduced to become a tax deduction), valuations, and other matters are all subject to far more scrutiny by virtually all Land Trusts, particularly those that operate on a regional and/or national level. 

A well advised Grantor should likewise approach their grant conservatively,  with a qualified team, and with thorough documentation.  And that is all as it should be.