Why Use a Conservation Easement?

Conservation easements are one of the newest and most owner friendly conservation management tools available for private landowners wishing to preserve and/or promote a particular conservation ethic on a particular parcel of property. Conservation easements are becoming an increasingly important tool in the efforts to protect and conserve important habitat types and open space. Easements enable a landowner to protect natural habitats on their property while at the same time, taking advantage of potentially substantial federal tax benefits.

Landowners interested in conservation generally have two principal concerns. First is the desire to protect the natural or productive qualities of their property. The landowner is interested in conserving special features such as fertile soil, mature trees, wildlife habitat or a piece of history - even after his or her ownership comes to an end.

Along with conservation, landowners are also concerned about maintaining their property's productivity. The economics associated with land ownership are changing and fewer family-owned properties are the primary source of a family's income. Along with maintaining productivity, Mississippi landowners must also contend with the increasing tax burden associated with property ownership. Estate taxes, property taxes and the financial incentive to sell or develop are all factors that affect land use decisions.

Conservation easements enable landowners to protect resources they value for their children and future generations while maintaining private ownership. In Mississippi, conservation easements are generally donated to non-profit conservation organizations, commonly known as land trusts. The donation of a conservation easement can have potentially significant tax benefits; these are discussed later in this handbook.

Conservation easements are recognized for legal and tax purposes by the State of Mississippi (Uniform Conservation Easement Act) and the Internal Revenue Service (Internal Revenue Code, Section 170(h)). This handbook will answer general questions that a landowner might have about conservation easements. Before initiating a conservation easement agreement, landowners should consult with their legal and tax advisors.

Conservation Easements
What Is a Conservation Easement?
Why Use a Conservation Easement?
What is the Uniform Conservation Easement Act?
Frequently Asked Questions about Conservation Easements
Financial Benefits of Conservation Easements
Federal Income Tax Deduction
Estate Taxes
Local Property Taxes
Land Trusts
What Next?
Appendices

Photos by Michael Kelly