North Shore Land Alliance works closely with landowners who care deeply for their land and are committed to ensuring that the landscapes are conserved in perpetuity. The Land Alliance employs an increasingly diverse and flexible number of land conservation tools.

Land Conservation Tools

Conservation projects often involve a blending of these tools, and every project is specifically tailored to incorporate a property’s natural resources, the landowner’s goals, and the perpetual stewardship obligation of the Land Alliance.

The Land Alliance knows that protecting land is truly one of the finest legacies a person can leave to their community at large, and we look forward to working with you to help meet your conservation goals as well as your financial needs.

To learn more about the conservation work we do and how we can help you, please contact the Land Alliance at 516-922-1028 or info@northshorelandalliance.org.

Conservation Easement?

The most common way land trusts protect land is with a tool known as a conservation easement. A conservation easement is a voluntary legal agreement that protects a property and its unique conservation attributes by permanently restricting specific development and related uses of the land that have detrimental impacts. Conservation easements allow landowners to continue to own, use, sell or bequeath their land as they wish.  Every conservation easement is unique (no two easements are alike) and subject to terms agreed upon by the grantor (landowner) and grantee (qualified conservation organization).

Why would I want to give up any of my property rights?

One of the primary reasons for utilizing a conservation easement is to protect the condition and future uses of the land.  By granting a conservation easement on your property to the Land Alliance, you are ensuring that your property will remain in its existing state for generations to come.   In addition, there are potential tax benefits available to individuals granting conservation easements.

What tax benefits can I expect from granting Conservation Easement?

A donated conservation easement may qualify for a federal tax deduction if the easement is 1) perpetual; 2) held by a qualified conservation organization such as the North Shore Land Alliance; and, 3) serves a valid “conservation purpose,” including (a) the preservation of land areas for outdoor recreation by, or the education of, the general public, (b) the protection of relatively natural habitat of fish, wildlife, or plants, or similar ecosystem, (c) the preservation of certain open space (including farmland and forest land), and (d) the preservation of historically important land area or a certified historic structure.  A qualified conservation easement must also be valued by a “qualified appraisal.”

The current federal tax incentives allow non-farmers to deduct up to 30% of a landowner’s adjusted gross income (AGI) in the year of the gift with an additional 5 year carry forward.  Qualified farmers are eligible for a 50% federal tax deduction.  Congress passed an enhanced conservation easement tax incentive that allowed non-farmers to deduct up to 50% of their AGI with a 15 year carry forward (qualified farmers were eligible for 100% of their AGI), but the tax incentive expired at the end of 2013.  To learn more about the enhanced tax incentive and other national conservation campaigns and efforts please visit the natural Land Trust Alliance website www.lta.org.

Other potentially significant tax benefits for donors of conservation easements include an annual New York State tax credit (25% of county, town and school district property taxes, up to $5,000 per year), the reduction of estate tax liability by lowering the value of the land for estate tax purposes, and the possible reduction of local property taxes.

While we will work closely with you during the entire donation process, the Land Alliance does not provide landowners with legal or tax advice.  We urge interested landowners to retain their own advisors, including but not limited to attorneys and accountants.

Purchase of Development Rights

Ownership of land can be thought of as a bundle of rights and can include mineral, water and logging rights, as well as the right to subdivide and develop the land. When a willing landowner donates or sells their development rights, they retain all other rights and responsibilities associated with the land, but the right to develop or subdivide their parcel is permanently relinquished through a legal agreement (generally in the form of a conservation easement).  The development rights are held by a qualified conservation organization, such as a non-profit land trust or governmental entity.

The landowner retains full ownership and use of the property after the development rights are sold and he/she is able to sell the restricted land or pass it on to future generations.   Moreover, a purchase of development rights provides cash for a landowner and may result in a reduction of estate taxes and/or property taxes on the protected property.  The proceeds of any sale may, however, be subject to capital gains taxes and remain part of the landowner’s taxable estate.

The availability of this tool is limited based on funding.  To learn more about this conservation tool and any other conservation options please contact North Shore Land Alliance at 516-922-1028.

 

Success Story

 

Meyer’s Farm, Woodbury, NY

Located on Woodbury Road by Candor Drive, the Meyer’s Farm is one of the last remaining farms in Nassau County.  It is much beloved by the local community.  In 2006, with proceeds from the 2004 Environmental Bond Program, Nassau County acquired the development rights for this 8.5-acre property for $4.3 million..  This purchase of development rights allowed the Meyer’s family to make the improvements necessary to continue farming and operating their very popular local farmstand.

Had the County not bought the development rights this 8.5-acre parcel might have been sold for development.  Instead, the Meyer’s family will continue to own the farm and be able to pass it along to the next generation.

Bargain Sales

Bargain sales of land combine the income-producing benefit of a sale with the charitable incentives of a donation.  This blending of conservation tools enables the North Shore Land Alliance to do more conservation work and find creative ways to achieve landowners’ goals and financial needs.

Bargain sales are the sale of land (fee title) or a conservation easement (partial interest) to a qualified conservation organization, such as a non-profit land trust or municipality, at less than fair market value.  This not only makes it more affordable for the conservation buyer, but offers several benefits to a landowner: It provides immediate income from the sale; it reduces potential capital gains liability; and, it entitles the seller to a charitable income tax deduction based on the difference between the land’s fair market value and its bargain sale price.

Land Donations

Donating land for conservation purposes is truly one of the finest legacies a person can leave for future generations.  You can, in effect, control the destiny of the land you and your family have loved for so many years.

An outright donation may be the best conservation strategy for you if you do not wish to:

  • Pass the land on to heirs;
  • Own property you no longer use;
  • Own highly appreciated property:
  • Have substantial real estate holdings and wish to reduce estate tax burdens;
  • Would like to be relieved of the responsibility of managing your land.

A donation of land to a qualified conservation organization releases you from the responsibility of managing the land and can provide substantial income tax deductions and estate tax benefits, while also avoiding any capital gain taxes that can result from a sale of the property.  Most importantly, if the land is donated because of its conservation value, it will be protected in perpetuity.