Albemarle-Pamlico Sounds
North Carolina Conservation Tax Credit
Category: Wetland and Upland
Cost: Information not provided.
Description: North Carolina has a unique incentive program to assist
land-owners to protect the environment and the quality of life. A credit is
allowed against individual and corporate income taxes when real property is
donated for conservation purposes. Interests in property that promote specific
public benefits may be donated to a qualified recipient. Such conservation donations
qualify for a substantial tax credit.
To qualify for the Conservation Tax Credit, a landowner must voluntarily transfer
some or all of the rights associated with a tract to a government agency or
qualified nonprofit group. In a fee simple interest transaction, the landowner
donates the land outright to the group. The donation of some rights, such as
development rights, is called an easement.
A conservation easement typically restricts the owner from developing the property
or destroying natural features but allows him or her to continue to live on,
rent or sell the land. The easement, however, is binding on all future purchasers.
Another option is a donation of remainder interest, which allows the owner to
continue to live on the property until he or she dies, at which time the property
is transferred to the nonprofit group or government agency.
Landowners who donate a conservation easement may also benefit from lower property
taxes and lower estate taxes. The donor may also claim a federal income tax
deduction on the easement.
All applications and final approval for the state conservation Tax Credit must
be certified by the N.C. Department of Environment and Natural Resources before
the credit can be claimed on a state tax return.
Outcome: Since 1983, 33,000 acres have been protected. The value of this
land is $80 million.
Contact: Information not provided.
Citations: http://ncctc.enr.state.nc.us and /http://www.tpl.org/tier3_cdl.cfm?content_item_id=883&folder_id=706
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