The conservation easement's purposes will vary depending on the character of the particular property, the goals of the land trust or government unit, and the needs of the landowners.
[3] Unlike land use regulation, a conservation easement is placed on property voluntarily by the owner whose rights are being restricted.
The restrictions of the easement, once set in place, are however perpetual (and potentially reduce the market value of the remaining ownership interest in the property).
4 The Pensions Protection Act of 2006), in 2006 and 2007, conservation easement donors were able to deduct the value of their gift at the rate of 50% of their adjusted gross income (AGI) per year.
With the passage of the Farm Bill in the summer of 2008 these expanded federal income tax incentives were extended such that they also apply to all conservation easements donated in 2008 and 2009.
[6] Attorney Philip Tabas of The Nature Conservancy promoted the state tax credit idea widely in the 1990s.
For landowners with little income subject to state taxation, a tax credit is of little value and may be insufficient incentive to grant a conservation easement.
The other state tax credit programs are smaller in dollar measurement, but are very significant in the area and the conservation values that they cause to be protected.
[12] Many conservation easements are purchased with funds from federal, state, and local governments, nonprofit organizations, or private donors.
[15] The Farm Bill, updated every five or more years, provides an important source of funds for conservation easement purchase.
Under ACEP, the Natural Resources Conservation Service helps tribes, state and local governments, and land trusts protect agriculture from development and other non-agricultural uses.
Landowners are required to prepare a multiple resource management plan as part of the conservation easement acquisition.
Commonly used funding sources include real estate transfer tax, legislative bonds, and lottery proceeds.
For instance, in 2014, New Jersey added conservation funding from corporate business taxes through constitutional amendment, approved by 65% of voters.
[20] Many states and counties have programs for the purchase of agricultural conservation easements (PACE) to protect productive farmland from non-agricultural development.