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The following is intended to be a guide, not tax advice. A tax professional should be hired to advise on a landowner’s specific situation.

Federal Income Tax Deduction
Donations of conservation easements or lands that meet federal tax code requirements may entitle the donor to a federal income tax deduction. IRS Form 8283

Virginia State Tax Credit
Virginia’s Land Preservation Credit is an income tax credit available for donated conservation easements or land at up to 40% of the value of the gift. An individual taxpayer may use tax credits up to $20,000, and unused credits may be carried forward for up to 10 years. In addition, unused credits may be sold to another Virginia taxpayer, allowing individuals with little or no Virginia income tax burden to take advantage of this benefit. Land Preservation Tax Credit

Federal Estate Tax Reduction and Exclusion
Extinguishing some or all of the development rights for a parcel of land through a conservation easement may reduce the value of the land for estate tax purposes, thus reducing the estate taxes.

Local Property Taxes
A reduction in a property’s real estate assessment occurs when a conservation easement has been placed on the property, which results in a tax reduction based on the reduced market value. A landowner that is participating in the Land Use Program may stay in the program, even with a conservation easement placed on the property, and continue to pay significantly reduced taxes. Land use assessments are based on current use, whereas typical assessments are based on fair market value.