Governor Perdue Proposes Georgia Conservation Tax Credit

Governor Perdue Proposes Georgia Conservation Tax Credit

Budget to Include Additional $5 Million for Georgia Land Conservation Act

BLECKLEY COUNTY , Ga. – On land recently approved for acquisition by the State Properties Commission and the Land Conservation Council for the Ocmulgee Wildlife Management Area in Bleckley County , Governor Sonny Perdue announced today his plan to propose the Georgia Conservation Tax Credit.  The proposed income tax credit will be available to individuals or corporations that donate land or a conservation easement to the state, a county, a municipality or a charitable non-profit organization.  Governor Perdue also announced an additional $5 million will be included in his FY07 budget for the Georgia Land Conservation Act program.

            “ Georgia has a strong tradition of private land ownership and private conservation that we want to honor and uphold,” said Governor Sonny Perdue.  “The Land Conservation Act encourages the use of creative tools like conservation easements to protect land from development while leaving it in private ownership.  The Georgia Land Conservation Tax Credit will further the use of this free market approach to conservation.”

            The purpose of the tax credit is to increase the financial incentive for a willing landowner to donate land or place a conservation easement on their property, which permanently protects the land and keeps it in private ownership.  Under this initiative, the state is also able to protect significant amounts of land at a lower cost than by purchasing the land out-right.

The Georgia Department of Natural Resources (DNR) will be responsible for ensuring that donated property qualifies as conservation land as defined in the Georgia Land Conservation Act.  Conservation lands are permanently protected lands that are undeveloped and meet one or more of the goals of the Land Conservation Act including water quality protection, flood protection, wetlands protection, protection of steep slopes, protection of riparian buffers and areas that provide natural habitat and corridors for native plant and animal species, protection of prime agricultural and forestry lands, protection of cultural and historic sites, heritage corridors, and archeological and historic resources, scenic protection, recreation including boating, hiking, camping, fishing, hunting, running, walking and similar outdoor activities and connection of areas contributing to these goals.

“Landowners who donate easements or land can make a great contribution to conservation of Georgia 's wildlife and natural resources,” said DNR Commissioner Noel Holcomb.  “This program will provide compensation through the tax credit to landowners who donate easements or land and should increase the use of easements in Georgia .”

If the conservation easement or land donation meets the goals of the Georgia Land Conservation Act, taxpayers will be able to claim a credit against their state income tax liability of 25 percent of the fair market value of the donated property, up to a maximum credit of $250,000 per individual and $500,000 per corporation.  The amount of the credit used in any one year may not exceed the amount of state income tax otherwise due.  Any unused portion of the credit may be carried forward for five succeeding years.

            For example, in the case of a conservation easement, a retired forester enters into a legal agreement with a local land trust to permanently restrict development on 41 acres of forestland he owns.  By limiting the land's development potential, this legal agreement, or conservation easement, reduces the fair market value of the land from $220,000 to $140,000, a difference of $80,000.  Since the $80,000 donation represents a gift to the land trust, the retired forester would be eligible for a 25 percent income tax credit on his gift of $80,000 or a tax credit of $20,000.  If his state tax liability on $30,000 in income before the gift is $1,500, his tax liability is reduced to zero for the year in which he made the gift.  He can continue to reduce his tax liability for five more years realizing $9,000 of the potential $20,000 tax credit.

Georgia law currently allows for a state income tax deduction for permanent conservation easements and charitable gifts of land but does not provide for an income tax credit.  Ten states ( California , Colorado , Connecticut , Delaware , Maryland , Mississippi , New Mexico , North Carolina , South Carolina and Virginia ) currently provide a conservation tax credit and include nonprofit organizations as an allowable recipient of donations. 

            The State Properties Commission, the Department of Natural Resources and the Land Conservation Council approved the acquisition of an approximately 1,683-acre tract in Bleckley and Twiggs counties for approximately $3.3 million last year.  This property, known as the Ocmulgee/Shawnee Tract, was part of the Ocmulgee Wildlife Management Area (WMA) that was leased by DNR's Wildlife Resources Division (WRD) from Weyerhaeuser Company for the past 14 years but was sold to Shawnee Land LLC in 2004.  The Conservation Fund purchased the property from Shawnee and held it until the state was able to secure funding.  The purchase of this tract of land allows road access to the public and secure hunting and recreational use opportunities.  The tract was a priority conservation area identified by the state's “Wildlife Action Plan.”  It will contribute to a corridor of conservation lands and critical wildlife habitat along the Ocmulgee River .

            In April 2005, Governor Perdue signed into law the Georgia Land Conservation Act, his initiative to encourage the long-term conservation and protection of the state's natural, cultural and historic resources.  The legislation established a trust fund and a revolving loan fund of $100 million in state, federal and private funding  available to local governments and the Georgia Department of Natural Resources (DNR) for the purchase of conservation lands. The funds are comprised of $55 million in loans funds, $20 million in redirected bond money and $25 million in private contributions.  The Governor's FY07 budget includes an additional $5 million for grants to local government land conservation projects.

            “To give local governments an additional source of seed money with more flexibility, I am including $5 million in my budget for grants to local government land conservation projects,” said Governor Perdue.  “These grants will give local governments the additional funding options they need to maximize their conservation efforts.”

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