FAQs

Conservation-minded landowners can opt to donate their easement to ensure that their land is protected forever. Donated easements require the property to have significant conservation value, such as:

• Protection of a relatively natural habitat of fish, wildlife or plants or similar ecosystem
• Preservation of open space (including farmland and forestland) for the scenic enjoyment of the public, or pursuant to a clearly delineated public purpose and will yield a significant public benefit
• Preservation for outdoor recreational opportunities
• Preservation of historically important land areas or buildings

A donated easement will be managed by an appropriate government agency and/or non-profit land trust. Local options include:

• Maryland Environmental Trust (MET) is the statewide organization that accepts donated easements. There are currently more than 140,000 acres permanently protected by MET. MET prefers easements greater than 25 acres but may consider smaller parcels if they have significant conservation value. Only easements accepted by MET are eligible for the state property and income tax credit.
• Gunpowder Valley Conservancy (GVC) is your local land trust that can accept either donated or purchased conservation easements. GVC currently holds easements protecting more than 1,800 acres in Baltimore County. Easements accepted by GVC are eligible for federal and state income tax deductions.

There are several advantages to donating an easement:

• Donations can be done quickly: Working with GVC generally takes less than 4 months to complete an easement. Working with MET takes longer due to the need to have the easement approved by the Maryland Board of Public Works, but the process is still generally quicker than the purchased easement process.
• Charitable contribution: The landowner is responsible for the costs associated with a before and after appraisal of the property. The reduction in value of the property is a charitable contribution if the donation is accepted by a qualified conservation organization (e.g. MET, Land Preservation Trust). Keep in mind, that there must be a development right to relinquish to establish a value for a donated easement.
• Federal income tax deductions : The value of the charitable contribution established by the appraisal may result in a federal income tax deduction of up to your adjusted gross income (AGI) with a potential carry-forward of up to 15 years, dependent upon the value of the contribution established by the appraisal.
• Maryland income tax credit: If MET accepts your easement, you may be eligible for a Maryland income tax credit of up to $5,000 per year per person donating the easement for up to 16 years, or a maximum of $80,000 per person, dependent upon the value of the contribution established by the appraisal.
• Estate tax reduction: Easements reduce the value of the property, meaning there is a corresponding reduction in the estate tax subject to taxation. In certain circumstances, portions of the land (up to 40% of the value) may be exempt from federal estate taxes.
• Postmortem donation: The donation of a conservation easement is one of the only things that can be done after death to reduce the estate tax.

Depending on your property’s land use, location, and site assessment, it could be a candidate for a purchased easement, where you would receive direct compensation for protecting your land. Our GVC Land Preservation representative will walk you through your options as it can be a competitive process for limited funding opportunities.

• The Gunpowder River and Coastal Rural Legacy Areas are sponsored by the Gunpowder Valley Conservancy as part of the statewide Rural Legacy Program. This program provides funding to preserve large, contiguous tracts of land to enhance natural resource, agricultural, forestry and environmental protection. GVC can assist interested landowners whose property fall within our two Rural Legacy Areas (this will be updated. Need to get maps and other links)
• Baltimore County Department of Planning administers the Baltimore County Agricultural Land Preservation Program, which is intended to preserve working family farms that are at least 20 acres. To learn more about their criteria, visit their website or contact Megan Benjamin at mbenjamin@baltimorecountymd.gov or (410) 887-3480.
• The Maryland Agricultural Land Preservation Foundation (MALPF) is part of the Maryland Department of Agriculture and seeks to preserve agricultural land, including farms and forest.

It generally takes longer for a purchased easement to be finalized as it requires approval by several agencies. It can be a year or more from the time you sign an agreement of sale.

Each program has its own criteria for calculating the purchase price.

• Rural Legacy is based on a formula where the maximum payment cannot exceed 75% of the fair market value of properties in the area. Points are awarded based on the number of development rights on the property, the productive characteristics of the property, and water quality protection.
• Agricultural easements are generally based on an appraised value of the easement (no greater than 75% of the fair market value) and property owners are asked to “discount” the purchase price.

The property may have to pay capital gains tax on the payment for your easement. Landowners are encouraged to apply as soon as possible, as some programs have deadlines for when funds are available.

Landowners typically must give up development rights to qualify for a conservation easement.  Your land preservation options are very limited if there is not a development right to relinquish.

When an easement is created, there are a variety of restrictions that might be placed on the property to protect its agricultural and natural features. Each conservation easement is unique and crafted with your interest in mind.

Below is a summary of general restrictions; requirements may vary based on your easement holder(s) and terms.

Easement Restrictions

Streams

• Maintain a minimum 50 foot grassed buffer
• Larger buffers and wooded buffers (riparian forest) are encouraged whenever possible
• Stream crossings are allowed in accordance with an approved Soil Conservation and Water Quality Plan.

Subdivision

• Generally prohibited
• Some non-density subdivision may be allowed in special circumstances

Additional Homes

• Generally prohibited
• Some additional primary residences or tenant homes may be allowed on larger parcels

Public Access

• Not required

Timbering

• Allowed with a Forest Management Plan
• Conversion of a currently wooded area to a non-wooded area (clear-cutting) is not allowed

Agricultural Uses Allowed

• No limitation to agricultural activities
• Primary processing of products produced on the farm is allowed (e.g. creamery on a dairy farm)
• On-site sale of products produced on the farm is allowed

Commercial Uses not Related to Agriculture

• Generally prohibited
• Some limited uses may be allowed

Ecosystem Marketing

• Generally allowed
• This includes forest banking, carbon sequestration, and related programs

Congratulations on taking an important step forward as a land steward! Once your property is in easement, GVC and any other co-holders of your easement will require monitoring visits at regular intervals— no more than once every year— to ensure that the easement’s terms are being upheld. You will be notified in advance, and the visit may be rescheduled to better accommodate your schedule. No access to interior of structures is allowed. Monitoring will involve outside photographs of the property and include staff and/or trained volunteers.