For many landowners, the desire to conserve one's land is only the first step. Financial considerations then need careful consideration. The primary decision involves choosing between donated and purchased easements.

Donation of an easement brings a package of benefits that potentially includes a State income tax credit, a Federal income tax deduction, reductions in both Federal and State estate taxes, and property tax savings. Landowners with larger incomes generally receive the greatest benefits, but, especially with Maryland's new State Income Tax Credit, even moderate-income families can often see significant savings. In some cases the benefits from donation can exceed the price that purchase programs will pay. Donation of an easement also leaves public easement purchase funds, which are always in short supply, available for property owners who are not in a position to donate an easement but whose land, if protected, would support your own conservation effort and those of your community. There are virtually no geographic constraints on donated easements (provided that the land has conservation value). The entire process of easement donations takes only four to five months.

Easement purchase programs tend to be restricted to either specific geographical limits (e.g. Maryland's Rural Legacy Program) or minimum size and soil capability (e.g. Maryland Agricultural Land Preservation Program). Landowners should explore these limits first to determine if their property is even eligible for consideration. They should also look at the availability of funds, the number of applicants, the local ranking system, and the time to sell an easement to a purchase program. Many programs are oversubscribed and have long waiting lists. Payments for easements will often be subject to capital gains taxes.

Review Donated Easements and Purchased Easements here at the Maryland Land Conservation Center and follow the links from there to specific program web sites for details.