Conservation Incentives FAQ (../files/cti_faq.pdf) The Nature Conservancy in Massachusetts Press Releases Search All Press Releases Kerry Crisley 617-227-7017, ext.316, kcrisley@tnc.org

Revenue Committee Supports New Incentive to Encourage Land Protection

Conservation Organizations urge Legislature to Endorse Tax Incentive

BOSTON, MA — March 6, 2008 — With development consuming land across the Commonwealth at a rate of more than 40 acres per day, the House Revenue Committee yesterday approved for the first time a critical new conservation tool designed to encourage the voluntary donation of land for natural resource protection.  This new milestone brings Massachusetts Conservation Incentives Act one step closer to becoming law.

With less public investment in natural area protection and high rates of development, the state, private land trusts and municipalities are grasping for new ways to conserve the last remaining great places.  The Act provides a modest state income tax credit to taxpayers that voluntarily gift certified land to a municipality, the state or a nonprofit conservation organization. 

"The preservation of our environment is of the utmost importance and we as a Commonwealth need to do everything we can to sustain it," said Representative John J. Binienda (D-Worcester), Chairman of the Joint Committee on Revenue.  "Conserving our natural lands is imperative to preserving the quality of life for generations to come.  It is the only sure thing that we have to leave to our children."

"I have been pushing for this legislation for several years based upon the net environmental and economic value to our state in encouraging the preservation of land,” said Representative William Straus (D-Fairhaven), Vice Chair of the Joint Committee on Revenue.  “This measure simply would make Massachusetts tax law consistent with Federal law on encouraging gifts of undeveloped land."

Stakeholders are urging the House and Senate to approve this initiative this legislative session. Sponsored in the House by Representatives Stephen Kulik (D-Worthington) and William Straus (D-Fairhaven) and in the Senate by Senator Stephen Brewer (D-Barre), the Act enjoys widespread backing with 76 legislative co-sponsors. Supporters are hopeful the bill will be passed by both branches, and signed into law by Governor Patrick. 

"There is no better method to encourage landowners to donate their land for preservation purposes," said Senator Brewer, Chief Senate Sponsor of the legislation.  "We owe it to ourselves and our future residents to keep this Commonwealth pristine and beautiful.  We live in a small compact state with dwindling precious natural resources and any cost-effective method we can use to preserve our quality of life is a major plus." 

“This tax credit will be an important tool for preserving and protecting some of our most critical natural resources throughout Massachusetts,” said Representative Stephen Kulik (D-Worthington), a House Sponsor of the bill.  “State government has an obligation to assist conservationists and local governments to enhance the quality of life in their communities, and I look forward to advancing this important bill through the legislative process during this session.”
 
Similar laws are on the books in 12 other states.  The Conservation Incentives Act most closely mirrors a North Carolina law where for every $1.00 spent by the state, $12.00 worth of land is protected. North Carolina has saved over 140,000 acres under its voluntary incentive program. For more information, visit www.enr.state.nc.us/conservationtaxcredit.

An April 2007 Impact Analysis by the Massachusetts Department of Revenue revealed that the Massachusetts Conservation Incentives Act would have a negligible impact on state revenues. 

Under the initiative, the Executive Office of Energy and Environmental Affairs would promulgate regulations to first determine whether properties proposed for donation meet public interest standards for natural resource protection through a certification process.  Eligible lands include parcels that protect drinking water supplies, un-fragmented wildlife habitat, archaeological and historical resources, scenic vistas, and those that boost the tourism, agricultural and forest product industries.  The Incentive further requires that:

• Gifts of land must be permanently protected
• Credit is valued at 50% of the appraised fair market value of the land
• Credit is limited to $50,000
• Credit cannot exceed the donor’s annual state income tax liability, but may be carried forward for 10 consecutive years

State agencies, towns and nonprofit land trusts often work with landowners who are interested in protecting their valuable land, but find the financial benefits of selling land to developers difficult to ignore. A state tax credit - particularly when used with the existing federal tax deduction for gifts of land - provides the incentive needed to tip the balance in favor of preservation.

“Conservation benefits all of us in Massachusetts, regardless of where we live,” said Loring Schwarz, acting director of The Nature Conservancy’s Massachusetts Chapter. “The Revenue Committee has shown the leadership and foresight needed to keep our drinking water clean; support our tourism, agricultural and forestry industries; and provide critical habitat for wildlife. We appreciate the support of the many legislators who recognize the necessity of this important new tool.”

"Massachusetts has a long and proud history of land conservation and philanthropy," said Jen Ryan, Mass Audubon's Assistant Director for Legislative Affairs.  "This new incentive will encourage landowners to make lasting contributions to our natural and cultural heritage."

The Nature Conservancy is a leading conservation organization working around the world to protect ecologically important lands and waters for nature and people. To date, the Conservancy and its more than one million members have been responsible for the protection of more than 15 million acres in the United States and have helped preserve more than 102 million acres in Latin America, the Caribbean, Asia and the Pacific. Visit The Nature Conservancy on the Web at www.nature.org.