NYS Conservation Easement Tax Credit

The Conservation Easement Credit (CEC) offers New York State taxpayers an annual income tax credit of 25% of their school district, county, and town property taxes up to $5,000. If a landowner's tax credit exceeds the amount, the taxpayer owes in state income taxes, the landowner receives a payment for the difference.

Landowner Eligibility

The Conservation Easement Credit is available to owners of property encumbered with an Article 49 Conservation Easement. These owners may include individual landowners, estates and trusts (including beneficiaries of an estate or trust), partners in a partnership (including a limited liability corporation that is treated as a partnership for federal income tax purposes), and business corporations taxed under Article 9-A of the Tax Law. The CEC is not available to Subchapter S corporations, not-for-profit corporations, or other kinds of corporations. If you are unsure if you qualify, you may contact the NYS Department of Taxation and Finance.

Landowners who do not reside in New York State need to file a nonresident and part-year resident income tax return each year to receive the CEC.

Conservation Easement Eligibility

To qualify for the CEC, the conservation easement must meet the following requirements:

• It must be a permanent conservation easement as defined in Article 49 of New York State's Environmental Conservation Law.
• The eased land must be located within New York State.
• The easement must be held by a public or private conservation agency.
  • Public conservation agencies include any agency of federal, state, and local governments including soil and water conservation districts, as well as local municipalities such as villages, towns, and counties.
  • Private conservation agencies include not-for-profit land trusts and any other not-for-profit organizations that are involved with land conservation and have the power to acquire interests in real property.
• The easement must be registered with DEC and have a DEC CE identification number – to register a conservation easement with DEC, please contact the Bureau of Real Property at (518) 402-9442 or email [email protected].
• The easement must comply with Section 170 (h) of the Internal Revenue Code; i.e. it was donated or partially donated (sold for less than fair market value) to a public or private conservation agency.

Note: Non-Article 49 conservation easements such as utility or transportation rights-of-way easements, scenic easements, easements created to obtain subdivision or building permits, or easements that were required as mitigation are not eligible for the CEC. Additionally, Article 49 conservation easements purchased at market value are ineligible.

Information Needed to claim the Credit

Landowners will need the following information to file for the Conservation Easement Credit with the NYS Department of Tax and Finance:

• A copy of the filed easement.
• Property Tax map of the easement-restricted property.
• Date the easement was filed at the County Clerk's office- this date should be listed on the easement document itself, but it can also be obtained from the county clerk's office or the conservation agency that holds the easement.
• Recording information including the county the easement was recorded in, and the liber and page, instrument number or control number. This information can be obtained from the county clerk's office or the conservation agency that holds the easement.
• Name of the public or private conservation agency holding the easement.
• DEC CE identification number assigned to the easement when it was filed with DEC. This information can be obtained from from the easement holder listed on the easement document or by contacting DEC's Bureau of Real Property at (518) 402-9442 or email [email protected].
• Property taxes (county and town) and school district taxes paid on the easement-restricted property. This information can be obtained from a tax bill, tax receiver, or from your local assessor.

Forms needed to claim the CEC can be accessed by visiting the NYS Department of Taxation and Finance website.