Environmental Bond Includes New Incentive for Land Protection

Conservation organizations urge Governor Patrick to endorse Bond with new tax incentive

BOSTON, MA — August 1, 2008 — With development consuming land across the Commonwealth at a rate of more than 40 acres per day, the legislature today approved a major bond bill (the Environmental Bond) that will provide $250 million over five years for state land protection programs and establish a state income tax credit for landowners who voluntarily give qualifying conservation or agricultural land to a municipality, the state or a nonprofit conservation organization.

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 Commonwealth’s last remaining great places. Conservation organizations agree that the tax incentive is great complement to the capital funds provided by the Environmental Bond, and will enhance and expand the state’s ability to preserve natural areas. It will help make conservation more competitive with land protection.

If the Governor signs the Environmental Bond with the tax credit – called the Conservation Tax Incentive – in place, the new incentive would go into effect in a year’s time.

The Connecticut River as seen from South Sugarloaf Mountain in Deerfield, MA. Photo © Jerry and Marcy Monkman

Sponsored in the House by Representatives Stephen Kulik (D-Worthington) and Bradley Jones (R-North Reading) and in the Senate by Senator Stephen Brewer (D-Barre), the conservation incentive enjoyed widespread backing. Supporters are hopeful the Environmental Bond will be signed by Governor Patrick with the Conservation Incentive in place.

"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), the 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 hope that the Governor recognizes this and signs the Conservation Incentive into law.”

"This is a proven, cost effective way to preserve open space in the Commonwealth. The tax incentive tool for preserving open space is an idea whose time has come in Massachusetts and I urge Governor Patrick to support it,” said Representative Bradley Jones.

Similar laws are on the books in 18 other states. The conservation incentives 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.

For all its impact on conservation, the incentive remains fiscally responsible. An April 2007 Impact Analysis by the Massachusetts Department of Revenue estimated that the conservation incentive would have a negligible impact on state revenues.

Under the initiative, the Commonwealth’s Executive Office of Energy and Environmental Affairs would first determine whether properties proposed for donation meet public interest standards for natural resource protection. 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
Tax Credit is valued at 50% of the appraised fair market value of the land
Tax Credit is limited to $50,000 per gift
Tax 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.

“With this important new tool, the legislature has shown the leadership and foresight needed to keep our drinking water clean, support our tourism, agricultural and forestry industries and provide habitat for wildlife,” said Loring Schwarz, acting director of The Nature Conservancy’s Massachusetts Chapter.

"Massachusetts has a long and proud history of land conservation," said Laura Johnson, President of Mass Audubon. "This is a catalyst for conservation that 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.

Mass Audubon works to protect the nature of Massachusetts for people and wildlife. Together with more than 100,000 members, we care for 33,000 acres of conservation land, provide educational programs for 200,000 children and adults annually, and advocate for sound environmental policies at local, state, and federal levels. Mass Audubon’s mission and actions have expanded since our beginning in 1896 when our founders set out to stop the slaughter of birds for use on women’s fashions. Today we are the largest conservation organization in New England. Our statewide network of 45 wildlife sanctuaries welcomes visitors of all ages and serves as the base for our conservation, education, and advocacy work. To support these important efforts, call 800-AUDUBON (283-8266) or visit www.massaudubon.org.