Conservation Easement Tax Credits

Abstract

Public concern about urban sprawl has spurred states to offer incentives for land preservation, such as state income tax credits granted to donors of conservation easements. This study examines the effect of these tax credits on conservation easement donations to regional land trust organizations in the lower forty-eight states during the period from 1994 to 2005. Regression results indicate that a state income tax credit has a statistically significant impact on conservation easement donations only during the initial period of implementation. The results also show that donation rates are significantly impacted by the extent of state park land holdings.