Conservation easements
Conservation easements are legal agreements designed to limit certain uses of private land to promote environmental conservation while offering tax benefits to landowners. Typically established between a landowner and an organization such as a government agency or nonprofit, these easements restrict activities that could harm the land’s ecological value, including the construction of buildings or mining. They are designed to last indefinitely and remain binding regardless of changes in land ownership.
Landowners who enter into conservation easements can benefit financially through various tax incentives, such as deductions on income taxes for charitable donations, reductions in estate taxes, and potential decreases in property taxes. The primary goal of these easements is to support conservation efforts by protecting habitats for wildlife and creating buffers between developed and natural areas, which can enhance ecological connectivity. However, the implementation of conservation easements has sparked debate; some critics argue they can be misused for tax benefits without proper land stewardship, and there are concerns over alterations to easement terms by future landowners. Overall, conservation easements offer a structured approach to balance private land use with environmental protection, though they are not without their controversies.
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Subject Terms
Conservation easements
DEFINITION: Legal agreements limiting the kinds of uses permitted on private lands
Conservation easements encourage various forms of conservation on privately held lands while providing tax benefits to landowners.
An easement is a legal entitlement providing its holder certain privileges regarding the use of property owned by another. In the United States, a conservation easement is a legal agreement between a landowner and another party—generally a group such as a local or state land trust, a government agency, a nonprofit organization, or an environmental conservation group—for the purpose of limiting the uses of the property subject to the easement. The easement limits uses and development of the land that would disturb the condition of the aspect of the land that is valued. Some typical prohibitions concern the construction of roads and commercial buildings, mining of the land, and harvesting of its trees. Conservation easements usually last in perpetuity and are legally binding independent of who comes to own the land. The land is still usable by its owner, but the owner’s use of it is limited by the terms of the easement.
Landowners can receive certain financial benefits for donating their land through conservation easements. Regarding income taxes, the donation of land constitutes a charitable gift and, as such, may be tax-deductible. Regarding estate taxes, lands that do not have easements may be subject to extremely high state and federal inheritance taxes. A conservation easement on the land reduces its value (since its economic uses are limited) and thus has a positive effect on the amount of inheritance taxes heirs must pay. Regarding gift taxes, again because an easement reduces the value of the land, more land may be given to a family member before it becomes subject to federal gift taxes. Regarding property taxes, having land protected by a conservation easement may qualify it for a reduction in property taxes (laws on this point vary from state to state).
Although conservation easements provide financial benefits, their intended purpose is to support conservation. The privately owned lands subject to conservation easements may serve as core habitats for species, or they may buffer and connect publicly owned lands such as nature reserves or national parks. These functions support the ecosystems found on the public lands. Buffer lands help provide cushions between lands that can be developed without restriction and lands that provide core habitats for flora and fauna. Lands that serve a connective function allow animals to move more freely from one publicly owned area to another, whether they are migrating, hunting, or establishing new territory. Further, much of the land that provides for federally listed is privately owned.
Conservation easements have not been without controversy. One area of conflict concerns the abuse of such easements for tax-shelter purposes. Critics have noted that some owners receive the tax breaks that come with easements but do not maintain their lands properly in accordance with their easement agreements. Additionally, controversies have arisen regarding changes to the terms of easements by successive owners of particular lands. For example, the National Trust for Historic Preservation approved substantial changes to the terms of the Myrtle Grove easement, which covered land on Maryland’s eastern shore in the Chesapeake Bay watershed, raising objections from many environmentalists.
Bibliography
Brown, Sarah, et al. "Conservation Easements: A Tool for Preserving Wildlife Habitat on Private Lands." Wildlife Society Bulletin, 3 Jan. 2023, wildlife.onlinelibrary.wiley.com/doi/full/10.1002/wsb.1415. Accessed 15 July 2024.
"Conservation Easements." Western Pennsylvania Conservancy, waterlandlife.org/land-conservation/conservation-easements/. Accessed 15 July 2024.
Gustanski, Julie A., and Roderick H. Squires, eds. Protecting the Land: Conservation Easements Past, Present, and Future. Washington, D.C.: Island Press, 2000.
Journal of Forestry. “Focus on . . . Private Forest Landowners: FAQs about Conservation Easements.” 100, no. 3 (2002): 4.
Keske, Catherine. The Emerging Market for Private Land Preservation and Conservation Easements. Saarbrücken, Germany: VDM Verlag, 2008.
Rissman, Adena R., et al. “Conservation Easements: Biodiversity Protection and Private Use.” Conservation Biology 21, no. 3 (2007): 709-718.