A conservation easement is a tool to help landowners accomplish their long-term conservation objectives. Typically, the value of a CE is linked to the fair market value of the property, as determined by an accredited appraiser based on the CE’s conditions. However, the amount paid for a CE is usually a percentage of the fair market value of the easement and the percentage can vary slightly between agencies.
There are a number of ways a landowner can be compensated for granting a conservation easement.
Including:
-provision of a tax receipt for a donation (only applies to in perpetuity easements)
-payment for the CE (usually a pre-set percentage of the CE value rather than full value)
-split receipt (a combination of tax receipt and payment)
-special consideration of a development proposal.
Currently, tax receipts associated with the Ecological Gifts Program are only provided for easements granted in perpetuity.
Prior to the creation of the act, conservation-minded landowners had limited opportunities to receive any financial benefit for seeking long-term protection of the ecological, scenic, agricultural or other values of their property other than selling their land to a conservation buyer or government agency. This was not a viable option for landowners wishing to retain ownership and use of their land. Conservation easements provided that opportunity. For those landowners who are already stewarding their land for long-term conservation, the benefit is straightforward – keep doing what you are doing AND receive a financial benefit for doing it.
In fact, the financial benefits of granting a conservation easement can be quite significant, and continue to be developed today. Broadly speaking, there are currently three kinds of financial incentive for granting a conservation easement: a tax receipt, a cash payment or beneficial consideration (from a municipal council) of a development proposal.
