Tax Benefits
Income tax benefits for conservation contributions of land or land value
When a donation of land or a conservation easement provides permanent conservation benefits, the donation may be considered for generous and unique income tax benefits.
Income tax benefits include:
Federal income tax deduction for land donations including full fee title, reserved life estates and bargain sales:
The value of your donation of land to a conservation non-profit or governmental agency may be claimed as a charitable contribution. This includes:
- deducting up to 30% of the donor’s annual adjusted gross income
- a “carry-forward” of up to 5 years
Federal income tax deduction for conservation easements:
Landowners who permanently protect private land with a conservation easement may deduct the value of your donation. This includes:
- deducting up to 50% of the donor’s annual adjusted gross income — or for qualifying farmers and ranchers, up to 100% of income
- a “carry-forward” of up to 15 years
Iowa income tax credit:
If you have Iowa income and are protecting land in Iowa, the Iowa Charitable Conservation Contribution Tax Credit may benefit you. You may be able to receive a tax credit of:
- up to 50% of the fair market value of the real property interest that you donate, up to a maximum $100,000 tax credit per donation
- a “carry-forward” of up to 20 years to help you receive your full tax credit even if your income is relatively low
Federal income tax deductions for charitable donations must be adjusted for any state tax credit received. If claiming the Iowa tax credit, the value of your federal income tax deduction must be reduced by an amount equal to the state tax benefit.
Tax deductions vs. Tax credits
Tax deductions reduce the amount of income subject to taxation. Tax credits are directly applied to the amount of tax owed.
Lots to think about. Let’s talk it through.
It can be hard to sort through your land protection options and tax benefits on a website. We’re here to help you through it. We can visit by phone, in person or on the land. Free. Confidential. No sales pitch. No obligation. Just the information and introductions you need to get started. Contact us.
Iowa Natural Heritage Foundation does not provide professional tax or legal advice. We encourage you to hire professional advice as needed to assist your transaction and your deduction.
