By Jamie Martin
For the first time since 2013, North Carolina landowners can receive tax credits for donating property for conservation, thanks to the Farm Act 2024. However, new restrictions have conservationists concerned about its effectiveness in encouraging donations.
Under the revised law, which took effect on January 1, eligible lands include those for farmland preservation, wildlife conservation, public trail access, and floodplain protection.
The program introduces a statewide cap of $5 million, which means donors won’t know their tax credit percentage until after the tax year ends.
Previously, landowners could receive a tax credit of up to 25% of their property’s fair market value. Now, they may receive as little as 5%, depending on the total donations made.
"If they don’t hit the cap, then every landowner will get the full 25% of the donated value and that’s fantastic, but I can’t tell a landowner that,” said Rusty Painter, Conservation Trust for North Carolina’s land protection director.
The law excludes conservation easements, which were part of the previous program, and will expire on January 1, 2027. While the reinstated credit is an accomplishment, conservationists believe more incentives are needed to attract landowners who might be hesitant.
North Carolina was the first state to enact a conservation tax credit in 1983, leading to the protection of over 230,000 acres by the time it was repealed in 2013. Similar programs in neighbouring states like South Carolina and Virginia have seen success. However, land donations in North Carolina dropped significantly after the repeal, making this reinstatement a hopeful step forward.
As development pressures increase, conservationists aim to improve the program further during its two-year period. “The window is closing on the best of the best properties to conserve,” said Painter, emphasizing the urgent need for updates to maximize conservation efforts.
Photo Credit: pexels-nataliya-vaitkevich
Categories: National