GRASSROOTS What’s Not to Like About Conservation Easements? Lately, the Commonwealth of Virginia has become so enthused about conservation easements it has created a package of tax incentives that enable landowners to have their cake and eat it too. Since 1999, Virginia has offered easement donors a tax credit of 50% of their easement value. Carried forward for five years, many easement donors eliminated state income tax for six years, but left significant tax credit value unused. Starting this year, unused tax credit can be sold! Any owner of Virginia land who donates land or an easement for conservation purposes is entitled to a tax credit worth 50% of their gift. Any portion of the tax credit may be sold. Many landowners who voluntarily initiate a conservation easement on their land are motivated by a desire to protect their property from future development. They not only want to preserve their land, but they want to be in control of all their property rights. In addition to the right to develop their land – a right that is, however, subject to a locality’s zoning ordinances – landowners also have the right to sell, lease, or donate any combination of their property rights, including those to timber, minerals, rights of way – and development. Landowners who decide to sell timber, mineral or development rights still own their land and can bequeath, sell, use and restrict public access to that land, just as they did before they decided to sell these rights. Landowners who sell their development rights want to preserve some natural, scenic, agricultural or historic resource of their land forever. Many discover that a conservation easement is a way to keep land in the family and establish a legacy for their children and grandchildren. Now, with the state and federal tax advantages, the financial motivation for a landowner choosing a conservation easement may be as compelling as a personal desire to protect land from subdivision. Landowners can’t ignore the value of their property. For many rural landowners, real estate is their primary asset and permanent reduction in its value can’t be taken lightly. A conservation easement is one way to cash in on the value of land without having to sell it. In addition to the Virginia State Tax Credit, a landowner benefits from a federal income tax deduction of 30% of the landowner’s adjusted gross income in the year the donation is given. The unused portion of the gift may be carried forward to be used a deduction for an additional five years, subject to the 30% limit each year. In addition, estate taxes, which often surprise heirs as land values increase, can be reduced, allowing heirs to keep property they otherwise might be forced to sell to pay these taxes. Finally, land under conservation easement is automatically entitled to use value tax rates, even in places without use value taxation. For more detailed information about these benefits, visit the Bedford Citizens for Land Preservation Resource Cart at the Bedford Central Library where you will find copies of Western Virginia Land Trust’s Winter 2003 newsletter, which contains helpful information. The previous column focused on public agencies that may hold conservation easements, such as the Virginia Outdoors Foundation (VOF), a state agency, which holds most of the easements in Bedford and the state. As of January 1, 2003 VOF held 1,277 acres of easements in Bedford County and a 40+ acre easement in Bedford City. VOF is the preeminent land trust of Virginia. There are also many not-for-profit land trusts operating in Virginia where landowners can turn for help in preserving open space, farmland and woodland through conservation easements. These vary greatly in scope and size and the expertise they offer differs from group to group. The Land Trust Alliance is a good source for identifying land trusts that operate throughout the state. (www:lta.org). The Land Trust Alliance lists 26 organizations that may hold a conservation easement in Virginia. Some of these organizations operate in other states (like the Appalachian Trail Conference Land Trust or the Civil War Preservation Trust) and some are local to specific regions of Virginia (like the Williamsburg Land Conservancy and the James River Association). This column will focus on two of the land trusts that may hold easements in Bedford County -- the Western Virginia Land Trust (Roanoke) and the Land Trust of Virginia (Leesburg). Especially relevant to Bedford County is the Western Virginia Land Trust (WVLT), which was organized in 1996 with its stated mission “to preserve the natural and cultural heritage of the western-most 23 counties of Virginia.” WVLT’s model is to work with landowners to educate them about the benefits of conservation easements. WVLT currently holds 768 acres in conservation easements, including one in Bedford County that is co-held with the Peaks of Otter Soil and Water Conservation District. Several other Bedford County conservation easements are currently in the works. WVLT has also helped preserve over 12,000 acres since 1996. Virginia law requires that a land trust operate for 5 years before it may hold an easement, but prior to 2001 WVLT was able to co-hold easements with other organizations. They can be contacted at Western Virginia Land Trust, 722 First Street, SW, Roanoke, VA 24016-4120, 540-985-0000, E-mail: www.westernvirginialandtrust.org. The Land Trust of Virginia (LTV) was chartered in 1991 and accepted its first easement in 1998. It holds 23 easements that protect over 4000 acres throughout the Commonwealth. Currently LTV holds easements mainly in Northern Virginia, but LTV is trying to extend its outreach to other areas, particularly by working with groups in other regions of the state. LTV holds many easements with other groups, believing it is wise to have trusts act as co-holders of easements because it offers a double layer of protection for the land. The Land Trust of Virginia can be contacted at P.O. Box 14, Middleburg, VA 20118. (540.687.8441) www.landtrustva.org Editor’s Note: Bedford Citizens for Land Preservation (BCLP) is a citizen-based, public foundation with the mission of supporting responsible growth in Bedford County while maintaining its rural qualities of life. For more information, visit BCLP’s website: www.bedfordpreservation.org or write to: BCLP, P.O. Box 86, Bedford, VA 24523.