Federal Tax Incentives for Easement Donations
The federal government provides financial incentives to encourage the donation of easements protecting historic buildings and landscapes under the Tax Reform Act of 1986. Owners who donate easements meeting certain criteria to charitable or governmental organizations can claim a charitable deduction on their federal income taxes. When owners donate conservation or preservation easements for historic properties, they pledge to preserve specified historic features and agree to obtain the easement holder's consent before making alterations. More information about the tax advantages is available on the National Park Service website. If you plan to use the 20% Federal Historic Rehabilitation Tax Credit in combination with an easement donation, consult your tax advisor because the easement donation may impact the rehabilitation credit.