By conserving your lands with a conservation easement, you can qualify for state, federal, and property tax deductions. The following is an explanation of current tax benefits for property, state, and federal programs.
Please feel free to contact a representative of the Catoctin Land Trust for more information, and as always, consult your personal financial advisor.
In Maryland, you are eligible for a property tax abatement for 15 years if you enter into a conservation easement with The Catoctin Land Trust that is co-held with the Maryland Environmental Trust. After 15 years, your property will be subject to the highest agricultural assessment rate which is currently $500.00/acre. The land does not have to be actively farmed to qualify for this reduced assessment. However, if the land is actively farmed it will be assessed at the appropriate rate for that form of agricultural use. Any improvements on the property, such as houses, will be ineligible for this assessment.
If you donate a Conservation Easement to the Catoctin Land Trust that is co-held by the Maryland Environmental Trust you will qualify for a Maryland State Tax Credit. Currently, the maximum Tax Credit is $5,000 per year. The remainder of the credit which is based on the appraised value of the easement may be carried forward for up to 15 years for a maximum credit of $80,000.
It is important that you have an experienced appraiser conduct any appraisal work associated with a land transaction. For more information on finding a qualified appraiser with experience in land conservation, Click Here.
The 2008 Farm Bill renewed an exceptional tax incentive for donated conservation easements to land trusts. This incentive will last until the end of 2009. It is hoped that the Obama Administration will see to this incentive being improved upon and extended.
For voluntary donations of conservation agreements in 2008 or 2009 the Federal Tax incentives will:
These deductions are based on a qualified appraisal of the value of the rights in the agreement. For more information on finding a qualified appraiser with experience in land conservation appraisal work, Click Here.
As always, please consult with your financial advisor.