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The income tax credit is equal to twenty-five percent of the amount of a charitable deduction resulting from the donation of a conservation easement. The twenty-five percent credit is subject to several caps. First, the credit may not exceed $250 per acre.
Conservation easements are a valuable tool to protect critical lands within, adjoining, or near public lands in Wyoming. A conservation easement is a legal agreement between a landowner and an eligible easement holder that restricts future activities on the land to protect its conservation values.
Form 8283, Noncash Charitable Contributions, which must be filed by individual taxpayers who claim itemized deductions for donations of easements.
In general, only the transfer of a perpetual easement is treated as a sale of property and eligible for capital gain or loss treatment. Grants or sales of limited easements are usually not treated as taxable sales of property.
Section 170(h): Of a qualified real property interest, To a qualified organization, Exclusively for conservation purposes. A restriction (granted in perpetuity) on the use which may be made of the real property.
An easement is considered a capital asset, and so when it is sold, it is treated as a capital gain to the extent that the proceeds exceed the basis in the property.