(Up to $50,000)

General Information

The Commonwealth of Massachusetts provides for tax credits of up to $50,000 for a donation of real property for conservation purposes or for a conservation restriction. You must apply for the tax credit before you make either donation and the land must be certified.

The donation must permanently protect an important natural resource that is in the public’s interest.

All donors must apply to and be certified by EEA prior to the donation in order to be eligible and to make sure the proposed land instruments permanently protect the natural resources in question before they are recorded.

The donor(s) are provided a refundable tax credit of 50% of the appraised donation value, up to the $50,000 max. Donors do not have to reside in the Commonwealth of Massachusetts to qualify.

Types of Land Ideal for this tax credit

Land that may qualify as Certified Land may include the following: drinking water supplies, wildlife habitats and biological diversity, agricultural and forestry production, recreational opportunities, or land holding scenic and cultural values.

Process

The application for a CLTC is a three part process; with several approvals along the way to help make sure that a potential donor is not subjected to unnecessary expenses prior to knowing if their donation will even qualify for the tax credit. Part I is the review of the application and focused on the quality of the donation for an initial determination of the land’s eligibility.

If the first part results in a determination of eligibility, Part II requires the applicant to provide EEA with an appraisal of the Certified Land to be donated as well as an estimate of how much of that value will be in the form of a donation. After confirming funding availability EEA will then issue the applicant a notice to proceed to the final step.

Part III requires the applicant to complete the donation and close, sending in things like a title exam and copies of recorded documents.

Further Information

Questions can be directed to Tom Anderson (thomas.anderson@state.ma.us) at (617) 626-1013.

 


This information is provided by the Executive Office of Energy and Environmental Affairs.