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Halfway there.
The Foothills Land Conservancy stands to secure protection for 4,000 acres of land across Tennessee as 2007 ends. That’s nearly half of the goal that organization set for itself: adding about 8,000 acres to the 17,000 already protected in time for the FLC’s 25th anniversary celebration in 2010.
More than 1,500 protected acres on 11 tracts will be added in Blount County alone, including 210 acres fronting East Lamar Alexander Parkway (U.S. 321) in Townsend and an 18-acre property on Little River.
“It’s a heck of a Christmas gift to East Tennessee and even the world,” said Bill Clabough, FLC executive director.
Other conservation easements being created in 2007 include 342 acres in Knox County, one 550-acre property in Cocke, 700 acres in Cumberland, two properties in Greene County, one in Monroe, two in Roane and two in Sevier.
The conservancy has not been pushing itself on landowners but has been benefiting from scrutiny concerning the tax benefits of donating a conservation easement, according to Clabough.
“It’s been phone calls and word of mouth,” he said. “Property owners say, ‘We want to talk about a conservation easement.’ It’s a significant income tax credit.”
A significant advantage to participating in a conservation easement is qualification for a federal income tax deduction. For income tax purposes, the value of the easement is the difference between the land’s value with the easement and its value without the easement.
If a property is worth $500,000 unrestricted, and an easement that precludes further development is placed on it that would drop its value to $200,000, the value of the donation is $300,000.
In order to quality as a charitable donation, an easement must meet federal tax code requirements by providing public benefit by permanently protecting important conservation resources.
An easement does not have to cover all of the property, preclude all use or development, or allow public access. Because an easement lowers a property’s fair market value, it can also result in lower property taxes and significantly reduce estate taxes.
In generally takes three to four months for the conservancy to complete the easement process. In 2006, the conservancy preserved 750 acres. In 2005, it was just 50.
For more information, please call (865) 681-8326 or visit www.foothillsland.org on the Web.