Trust Our Land: Conserving land together

By Bergen Tjossem

The last three years have been a wild ride for Eagle County’s real estate market by any measure. But what does that mean for conservation? A lot, actually. Despite an uncertain economy and swelling land values, land conservation surged. Why? Partly because landowners have been able to take advantage of high property values by working with land trusts to protect their land.  

Conservation easements are a completely voluntary private property right. The conservation easement document is a voluntary legal agreement between a willing land owner and a willing land trust that permanently limits development on a property in exchange for generous tax benefits provided by Colorado and the federal government.

According to Keep It Colorado, a nonprofit, statewide coalition of conservation partners, approximately 60% of land in Colorado is privately owned. Over the past 40 years, land trusts and partners across the state have conserved more than 3.2 million acres of working lands, wildlife habitat, and open spaces. The Eagle Valley Land Trust (EVLT), a nationally accredited land trust, has protected over 14,000 acres in Eagle County. 

Conservation Easement Incentives

There are a lot of reasons why conservation easements continue to be popular with Colorado’s landowners. For example, they offer several tax benefits at both state and federal levels. If the easement is permanent, donated to a land trust for conservation, and meets IRS conditions, it can qualify as a tax-deductible charitable donation, reducing the landowner’s state and federal income taxes. 

The easement is treated as a donation of development rights, with the deduction based on the difference between the property’s market value before and after the easement’s restrictions kick in. The value of a conservation easement, and therefore the resulting tax benefits, is determined by a qualified appraiser. 

In Colorado, conservation easement donors can also receive a tax credit of up to 90% of the donated easement’s value. The tax credits can be transferred or sold to others to offset their Colorado tax bills through a broker like Tax Credit Connection. In order to receive the state tax credit, a landowner must work with a land trust like Eagle Valley Land Trust or a similar organization that has been certified by the State of Colorado to hold conservation easements. 

Additionally, conservation easements lower the market value of the land, reducing property taxes. Furthermore, they can significantly reduce estate taxes, making it easier to pass the property on to the next generation while keeping it intact and within the family.

Conservation easements are a sophisticated tool that can support landowners in realizing their own goals for their property. Whether that’s to pass land to children in an ecologically intact and community-sensitive way, to support active agricultural operations with a capital infusion, or leave a legacy of conservation, conservation easements can support a wide variety of landowner needs and visions. 

Conservation in Colorado

With continued population growth across the state and growing interest in outdoor recreation of all types, Coloradoans continue to prioritize the conservation of the places they love. In fact, 94% of the state’s residents agree that even with state budget problems, we should find money to protect the state’s land, water, and wildlife. Further, 69% of Coloradoans consider themselves conservationists.

Conservation easements, when completed with accredited land trusts like EVLT, not only support Colorado’s landowners, but also our State’s land conservation aspirations.

Are you interested in learning more about conservation options for your land? Please don’t hesitate to contact the Eagle Valley Land Trust, your local land trust, for a consultation at 970-748-7654 or by emailing Jessica Foulis, EVLT’s Executive Director, at Jfoulis@evlt.org.

Bergen Tjossem is the Eagle Valley Land Trust’s Deputy Director. To learn more about the Eagle Valley Land Trust’s conservation work in our community, visit www.evlt.org or follow EVLT on Facebook and Instagram.