The Financial Benefits of Georgia’s Conservation Easement Tax Credit for Landowners

In recent years, Georgia has made significant efforts to preserve land and promote land conservation. One of the financial incentives the state government offers is the Conservation Easement Tax Credit. This program allows landowners to receive a tax credit of up to 25% of their land’s value. However, the limit is $250,000 for individuals and $500,000 for businesses. 

By making an effort to conserve their land or property, landowners can contribute to preservation and get benefits. However, understanding conservation easements and maximizing tax benefits is not that simple. It is highly recommended that you get in touch with a CPA in Alpharetta, GA, to get guidance. 

Understanding the conservation easement tax credit 

The Conservation Easement Tax Credit is rewarded to all landowners who donate their property rights to preserve natural resources for the coming generations. Up until now, this tax credit has successfully preserved over 20 million acres of land across the United States, and Georgia has actively played a part in it. 

Eligibility procedure 

There are two things you must do to protect your land as a landowner in order to qualify for Georgia’s conservation easement tax credit. This includes keeping the animals safe, allowing other people to enjoy the outdoors, or preserving important historical sites. 

Additionally, you must determine the value of your land protected by the easement, and the Georgia State Properties Commission should approve it. This part of the process ensures that the value is accurate to the current times so that the landowner can claim the right amount of tax benefits. 

What are the financial benefits that the landowner enjoys?

If you are a landowner participating in preserving land through a conservation easement, there are various benefits at your disposal. Here are some points to know:

1. You get state income tax credits. 

By donating a conservation easement, landowners can receive a state income tax credit. According to the law, landowners can receive tax credits up to 25% of their land value. The assessment of their land value must be done professionally. However, there is a limit to the credit: individuals can claim up to $250,000, while businesses can claim up to $500,000. 

2. The tax credits are transferable. 

Georgia allows landowners to sell unused tax credits to others. This means that landowners can benefit from selling these credits from their land conservation efforts rather than using these credits. 

3. Landowners may also qualify for federal income tax benefits. 

Landowners in Georgia not only get state tax credits for their land conservation efforts but may also qualify for federal income tax deductions. These benefits are similar to those for charitable donations. You can reduce your taxable income by 50%, while farmers and ranchers can deduct the entire adjusted gross income or AGI. 

4. You can use the tax credits for 15 years. 

If you decide not to use your tax credits for the same year or even the next year, you do not have to worry about it going to waste. You can use your tax credits from the conservation easement for 15 years. Therefore, you can avail the benefits of your efforts for a long time. 

5. There are additional local tax benefits. 

Landowners who protect their land through a conservation easement may also receive property tax benefits. For example, ad valorem tax exemptions may apply under the Conservation Use Valuation Assessment (CUVA) program. This scheme offers property tax relief if you continue to use the land for farming, forestry, or conservation.

Unlock tax benefits!

If you are keen on a green Earth and want to help the world preserve its natural resources but do not know where to begin, being a landowner in Georgia can be your first step. There are various financial benefits of the conservation easement scheme. Hire a CPA today to maximize your tax savings!