Wood River Land Trust LTA Standard 8: Evaluating and Selecting Conservation Projects

8C: Federal and State Requirements

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Practice 8C: Land and conservation easement projects may qualify for federal, state, and/or county tax incentives. The State of Idaho does not currently offer incentives for conservation easements, but counties in the Wood River Land Trusts Service Area offer agricultural and wildlife tax deductions for those properties that qualify. For projects where the landowner anticipates taking advantage of federal, state, or county tax benefits, Wood River Land Trust will determine that the project meets the Internal Revenue Codes conservation purposes test (IRC Section 170(h)) and/or meets requirements for local agricultural and wildlife tax deductions. The Land Trusts findings on those requirements will be documented in the conservation easement recitals and baseline documentation report. If applicable, the Land Trust will document findings pertaining to state and local criteria. Federal Criteria While it is not required that all Land Trust projects meet tax incentive requirements, particularly if the landowner is not planning to take a federal tax deduction, the conservation purposes test of IRC Section 170(h) will be used to evaluate and select projects. When a landowner is planning to take tax deductions, the Land Trust will make sure at least one criterion is met. The criteria are as follows:
(d) Conservation purposes For purposes [of section 170(h]), the term conservation purpose means -(i) the preservation of land areas for outdoor recreation by, or the education of, the general public, (ii) the protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem, (iii) the preservation of open space (including farmland and forest land) where such preservation is -(I) for the scenic enjoyment of the general public, or (II) pursuant to a clearly delineated federal, state, or local governmental conservation policy, and will yield a significant public benefit, or (iv) the preservation of an historically important land area or a certified historic structure

Standard 8, Federal and State Requirements / Page 1 of 1 / Approved by the Board November 27, 2007