 he donor of a preservation easement makes a gift to the future by ensuring that the
distinguishing features of a property will be protected forever. In exchange, the donor
may be eligible for various tax incentives.
Congress has recognized the public benefits of the donation of preservation and conservation
easements. Consequently, an easement donation may qualify for income, gift and estate tax
deductions through Internal Revenue Code Section 170(h) and other sections. Treasury regulations
and tax court decisions have upheld easement valuations for certain family properties, historic
land areas, and historic commercial rehabilitations. HCF does not provide tax advice, but can
offer more specific information on these developments.
In 1991, South Carolina joined more than 35 other states in enacting comprehensive easement
legislation, thus settling a number of issues regarding this mechanism for property stewardship.
Among other provisions, this act requires that counties consider the effects of conservation
easements for property tax appraisal purposes.
The value of an easement gift is set by a qualified appraiser, engaged by the donor to determine
the impact of the restrictions on the value of the property. Once the appraisal is completed, the
decision to grant the easement should be made by the property owner with the advice of his or her
accountant and attorney. HCF staff and trustees are available to answer questions.
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