Conservation Easements: Benefiting Landowners and Our Community

Conservation easements are real property interests that legally restrict how land can be used. They are designed to protect important conservation values, such as agricultural land, wildlife habitat, and scenic open space. The land remains privately owned, so the landowner retains the right to use the land and all management responsibilities. 

The conservation easement gives rights to a third party to ensure that the property is protected from development and other land uses that would negatively impact the property’s conservation values.  When the landowner conveys the property to someone else, the conservation easement continues to encumber the land and its uses.

Donations and Tax Benefits

Conservation easements that perpetually restrict the landowner’s development rights can provide income tax breaks if the landowner donates the conservation easement to a qualifying organization (such as Boulder County or a non-profit land trust) with the intent to protect the property for conservation purposes that are defined by the Internal Revenue Service (IRS) and the State of Colorado (State).

Financial benefits may be available for donations that qualify through IRS and State regulations.  The potential financial benefits and whether the transaction even qualifies depend on multiple factors, including property size, environmental attributes such as wildlife habitat, streambed or riparian areas, and how easily the parcel could be developed.  Federal income tax benefits are not transferable; however, State income tax credits are transferable, and Colorado has an active market for brokering tax credits for people who cannot use the credits themselves. 

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