The Internal Revenue Service (IRS) issued Notice 2023-30s, Conservation Easements -- Safe Harbor Deed Language for Extinguishment and Boundary Line Adjustment Clauses (irs.gov). This notice sets forth the safe harbor deed language for extinguishment and boundary line adjustment clauses required by § 605(d)(1) of the SECURE 2.0 Act of 2022 (SECURE 2.0 Act), enacted as Division T of the Consolidated Appropriations Act, 2023, Public Law 117-328, 136 Stat. 4459. The safe harbor notice addresses only amendments to extinguishment and boundary line adjustment clauses in accordance with § 605(d) of the SECURE 2.0 Act and does not address any other deed amendments.
Grantors seeking to amend a Conservation Restriction to take advantage of the safe harbor must record an amendment by July 24, 2023. Amendment of Conservation Restrictions is optional, and DCS cannot advise grantors on whether an amendment is advisable. However, the Division of Conservation Services has established an expedited process to enable those wishing to record safe harbor amendments to have amendments reviewed prior to July 24.
To use the expedited process, applicants must use the Safe Harbor Template linked below, follow the requirements below, and provide all other required information:
- An amendment will not receive expedited review if it includes any changes to the template other than those necessary to adapt the template to a particular CR.
- The following documents must be provided as attachments in separate PDFs or an equivalent format:
- The original CR
- Any prior amendments
- All relevant deeds conveying the Premises or the Restriction to its current holder (if Grantor or Grantee has changed)
- Any other document referenced in the amendment
- The complete amendment application is received before July 1, 2023. Submissions received after July 1, 2023 will not be reviewed or approved before the IRS Deadline.
Finally, on your Conservation Restriction Submission Form in the Background Information Section in response to the question “Is this CR an amendment to an existing CR” type the words “safe harbor.” This will enable quick sorting and appropriate handling of these amendments.