Calculating the Value of an Easement

Because eased property cannot be fully used or developed as zoning would permit,  its market value is reduced. The easement holder may fully or partially compensate the landowner for this reduction in value by paying for the easement; or the landowner may choose to "donate" the reduction in market value to the grantee. As long as certain IRS requirements are met, the reduction in market value attributable to a donated easement may be considered a charitable donation that makes the landowner eligible for a federal income tax deduction and estate tax benefits.

Source: Using Conservation Easements to Preserve Open Space: A Guide for Pennsylvania Municipalities

Benefits for the Public

Benefits for Landowners

• Protected open space makes land available for active recreation, such as playing fields.

• Easements can connect trails across the township and protect access for passive recreation, such as hiking.

• Open space contributes to a sense of community and combats sprawl.

• By keeping the land free from development, particularly residential development, the community avoids increasing taxes to pay for new schools and added municipal services.

• Easements can protect wildlife corridors, assist in farmland preservation, and maintain high quality water sources.

• Easements can be placed on private land surrounding public parks to create visual and habitat buffer areas.

• Easements permit you to control how the property will be used in perpetuity, no matter who the future owners are.

• Your wishes remain in force even when political leadership and zoning ordinances change in the township.

• Easements are tailored to your particular needs and wishes. You may continue to live on the eased property or you may sell it or pass it on to heirs.

• Placing a conservation easement on the property may have beneficial tax consequences, such as lower estate taxes or lower property taxes.

• Donating the easement may provide significant federal income tax benefits.

Landowners are urged to consult professional tax advisors for more information on potential tax benefits of conservation easements.