Maximize Financial Benefits Through Strategic Conservation

Turning permanent land protection into federal, state, and local tax savings.

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Overview

Donating land or a Conservation Restriction (CR) to The Compact of Cape Cod Conservation Trusts or a local member trust preserves open space while providing substantial income tax deductions, local property tax reductions, estate tax relief, and direct state tax credits.

The Compact provides confidential assistance to landowners and their advisors to structure gifts for maximum financial benefit.

Key Tax Benefit Summary

Massachusetts Conservation Land Tax Credit (CLTC) 50% refundable state credit on donated appraisal value Up to $200,000 refundable credit
Federal Income Tax Deduction Charitable deduction under IRS §170(h) Up to 50% AGI with 15-year carryforward
Local Property Tax Relief Permanent reduction in municipal tax valuation Reassessed as restricted open space
Federal Estate Tax Exclusion Lowers estate value & provides IRC §2031(c) exclusion Up to $500,000 extra exclusion from taxable estate

Primary Advantages

1. Massachusetts Conservation Land Tax Credit (CLTC)

Offers a refundable 50% credit (up to $200,000) based on appraised conservation value. If the credit exceeds your state tax liability, the Commonwealth issues a direct refund check.

2. Federal Income Tax Deductions

Under IRS rules, donating a qualified CR allows standard donors to deduct up to 50% of Adjusted Gross Income (AGI) annually, with a 15-year carryforward for unused deduction amounts. Qualifying farmers and ranchers can deduct up to 100% of AGI.

3. Property Tax & Estate Planning

  • Local Property Taxes: Towns lower annual property tax assessments to reflect restricted building rights.

  • Estate Taxes: Reduces overall gross estate value and allows an additional exclusion of up to 40% of the restricted land value (capped at $500,000) under IRC §2031(c).

Valuation Formula

Appraisals must be completed by a qualified independent appraiser to establish the donated value:

Conservation Gift Value = Fair Market Value (Before CR) - Restricted Market Value (After CR)

Consult Our Team

The Compact works directly with landowners, attorneys, and CPAs to ensure compliance with IRS guidelines and Massachusetts environmental standards.

  • Contact: Mark H. Robinson, Executive Director

  • Phone: (508) 694-7415

  • Email: mark@thecompact.net

  • Mailing Address: P.O. Box 443, Barnstable, MA 02630