January 26, 2004

Conservation Easements Provide Significant Tax Deductions
by James L. Cummins

The conservation of important habitat types, such as hardwood trees and longleaf pine, play an important role for Mississippi as well as our nation. Conservation easements are one of the most landowner friendly tools available. Easements enable a landowner to protect habitat while at the same time, taking advantage of federal tax benefits.

The federal government, specifically the Internal Revenue Service, recognizes that conservation easements have potential public benefits and as such could qualify the owner for a substantial tax deduction.

The best way to understand conservation easements is to look at rights that come with owning land. When an easement is placed on a property, the owner may give up certain rights (e.g., developing the property, etc.). Restrictions on the property are specified in the easement document, which must be perpetual in order to receive federal tax benefits. The easement document is a legal instrument that is recorded in the county of record.

There are three important aspects of any conservation easement that must be met. First, the easement must meet a definite conservation purpose. The primary purpose, in most cases, would be the protection and/or restoration of important habitats. Second, in order to qualify for a conservation easement, the easement must be granted to or be held by a "qualified conservation organization," such as the Mississippi Land Trust. The easement gives the organization the right and responsibility to monitor and enforce the easement document. A third, but equally important aspect of the conservation easement process is the development of what is referred to as a baseline ecological assessment. It is an ecological "snapshot" of the property and records the condition/uses of the property.

Except for the restrictions described by the easement, the property owner retains all other rights. Hunting, fishing, wildlife viewing and timber management can still be conducted. Conservation easements do not allow public access.

When one places a conservation easement on property, the owner can be assured that it will remain in a natural state forever. The property owner is rewarded by the fact that the easement will promote his or her conservation ethic while receiving immediate tax benefits.

For more information on conservation easements, contact the Mississippi Land Trust, P.O. Box 23, Stoneville, MS 38776 or go to 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