May 12, 2003

Legislature Praised For Scenic Rivers And Streams Incentives
by James L. Cummins

The Mississippi Legislature has made it easier to place conservation easements on land. Conservation easements are one of the most landowner friendly tools available for those wishing to preserve a particular conservation ethic on a specific piece of land. Easements enable a landowner to protect natural habitats on their property while at the same time, taking advantage of potentially substantial tax benefits.

Mississippi is one of several states that has adopted a Uniform Conservation Easement Act. Under the Act, a landowner can place restrictions on the property with the intent of preserving conservation practices. The Internal Revenue Service also recognizes the conveyance of conservation easements and this could qualify the owner for a substantial tax deduction.

A new law makes it possible for landowners to receive state income tax credits for costs incurred from certain conservation easements. The tax credit is modeled on the forestry replanting tax credit enacted three years ago.

"This is a tax credit to ease the burden of transaction costs incurred when landowners make conservation easements along nominated Scenic Streams and on Natural Heritage Program priority conservation sites," explained Andrew Whitehurst, coordinator of Mississippi's Scenic Streams Stewardship Program.

The bill was authored by Representatives Warner McBride, Diane Peranich, Daniel Guice and Jim Simpson and was signed by Governor Ronnie Musgrove on March 23, 2003. The leadership of these dedicated elected officials and Andrew Whitehurst is very much appreciated.

"Most conservation easements are expensive to create because they require legal services, appraisals, baseline biological surveys and funds for future maintenance and monitoring. That's one reason why this new law is so important," Whitehurst said.

The tax credit created eases the transaction costs of creating a conservation easement by allowing 50 percent of the costs, up to $10,000, to be returned to the landowner as a tax credit. The taxpayer has up to 10 years to use the credit against Mississippi income tax.

"This new law is designed to sweeten the idea of making a long term conservation decision which not only helps the landowner's tax situation, but protects and stabilizes important habitats for fish and wildlife on private, non-industrial lands," Whitehurst said.

As in any conservation program, it is best to seek the advice of fish and wildlife and tax professionals with experience in the development of conservation easements.

For more information on conservation easements, write the Mississippi Land Trust at P.O. Box 23, Stoneville, MS 38776 or visit their web site at www.misslandtrust.org.

James L. Cummins is Executive Director of the Mississippi Fish and Wildlife Foundation in Stoneville, Mississippi. Known as "Wildlife Mississippi," the Foundation is a non-profit, conservation organization founded to conserve, restore and enhance fish, wildlife and plant resources throughout Mississippi