Conservation Easements Point-Counterpoint

Presentation by: Rotarians Scott McInnis and Kirk Rider

Topic:  Conservation easements, when they are granted in accordance with the IRS rules governing all charitable donations, permanently restrict the development of the affected real estate.    These easements run with the land in perpetuity.   A donated easement generates a charitable deduction for the grantor of the easement.

Some conservation easements are sold rather than donated, to land trust organizations, or state agencies trying to accomplish, among other things, their habitat, preservation, agricultural or open space objectives.   In Colorado, grantors are also given a Colorado state income tax credit equal to half the value of the donated portion of the easement.

The grantee of the easement, whether it is the Division of Parks and Wildlife, a local land trust like Mesa Land Trust, an industry land trust like the Colorado Cattlemen’s Association Land Trust or a national land trust like the Rocky Mountain Elk Foundation Land Trust, must accept perpetual responsibility for “stewardship” of the easement, mainly periodic inspection to make sure the easement’s terms are being observed.  However, Mesa Land Trust once had to bring suit to enforce an easement’s terms against a new owner of the property.

In Colorado, County governments have commonly been check-off agencies for easements receiving these tax credits or state funds.  In 2015, the Mesa County Commissioners, and particularly Commissioner McInnis, expressed real reservations about the whole notion of these easements.   Presenting differing viewpoints on these easements today are two of our own Rotary members, Commissioner Scott McInnis and retired lawyer Kirk Rider.