FAQ: Donating a Conservation Easement

What is a conservation easement?

A conservation easement is a voluntary legal agreement that permanently limits certain types of development on your land, while allowing you to continue owning, using, and passing it on to heirs or selling it. Easements can be tailored to reflect your goals—for example, keeping land in agricultural use while protecting natural features.

How is this different from donating land outright?

When you donate a conservation easement, you retain full ownership of your land. You can live on it, farm it, lease it, or sell it—but the easement’s restrictions stay with the land forever, ensuring that future owners honor the conservation terms. In contrast, donating land outright means transferring ownership to HeartLands Conservancy.

Is public access required?

No. Public access is not required when you donate a conservation easement. The land remains private property, and you decide who can access it.

Can I continue to run a home-based business?

In most cases, conservation easements allow home-based businesses and other compatible uses, provided they do not conflict with the easement’s conservation purpose. Easements are tailored to your property and your needs, and we work closely with you to ensure flexibility for ongoing uses like farming or small-scale businesses.

What are the tax benefits of donating a conservation easement?

You may be eligible for a federal income tax deduction equal to the appraised fair market value of the easement—typically the difference between the land’s value before and after the easement is in place.

This deduction can reduce your taxable income in the year of the gift, and any unused portion can generally be carried forward for up to 15 additional years (IRS Publication 526).

Are there enhanced tax incentives for farmers?

Yes. If you are a qualified farmer or rancher (earning more than 50% of your income from farming), you may be able to deduct up to 100% of your adjusted gross income (AGI) in the year of your gift, with the same 15-year carryforward.

Can donating an easement reduce estate taxes?

Yes. By reducing the appraised value of your land, a conservation easement can significantly lower the taxable value of your estate, which may reduce or eliminate estate taxes for your heirs (IRS Estate Tax Guidance).

Do I need an appraisal?

Yes. To claim a federal income tax deduction for donating a conservation easement, you must obtain a qualified independent appraisal that determines the reduction in the land’s fair market value due to the easement.

Can the terms of an easement be customized?

Absolutely. Every easement is unique and can be designed to reflect your land and your goals—for example, allowing continued farming, home-based businesses, limited future construction, or certain recreational uses while still ensuring permanent protection of the land’s conservation values.

How do I get started?

Contact HeartLands Conservancy. We’ll meet with you, learn about your vision for your land, and work together to design an easement that meets your needs and qualifies for potential tax benefits. We also encourage you to consult with your tax advisor or estate planner early in the process.