Saving Land. For Everyone. Forever.

• Preservation of land for outdoor recreation by, or the education of, the general public.
• Protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem.
• Preservation of open space (including farmland and forest land) either for the scenic enjoyment of the general public or pursuant to a clearly delineated governmental conservation policy (both purposes must yield a significant public benefit), or
• Preservation of a historically important land area or a certified historic structure

Identification of Conservation Purpose
Each conservation purpose must be identified in the deed of conservation easement and further described in a Baseline Documentation Report. The Baseline Documentation Report is produced based on site visits, interviews with those familiar with the property, and research. In addition to describing the conservation values, the document outlines the current conditions on the property at the time the conservation easement is deeded. This includes landscape condition and all natural and human-made features as they relate to the terms of the conservation easement.

The landowner’s current uses and future plans for the property are important considerations when embarking on a conservation easement agreement. Once identified these needs can then be discussed and incorporated into the terms of the conservation easement. The Santa Fe Conservation Trust recognizes that the viability of conservation relies heavily upon the landowner’s ability to secure reasonable and sustainable use of their real-estate investments. This use may include the continued working of the land, the right to develop home sites as well as the right to enjoy the recreational and aesthetic opportunities that open space affords.

The value of an easement may be deducted from Federal income taxes as a charitable gift. A conservation easement donor may deduct the full value of the conservation easement up to 50% of adjusted gross income (qualified farmers may be able to deduct up to 100% of AGI). Donors may carry this deduction forward up to 15 years until the value of the charitable gift is spent in tax savings.

Who qualifies as a farmer or rancher?
The 2015 law defines a farmer or rancher as someone who receives more than 50% of his or her gross income from “the trade or business of farming.” The law references IRC 2032A(e)(5) to define activities that count as farming, including:

• Cultivating the soil or raising or harvesting any agricultural or horticultural commodity (including the raising, shearing, feeding, caring for, training and management of animals) on a farm;
• Handling, drying, packing, grading or storing on a farm any agricultural or horticultural commodity in its unmanufactured state, but only if the owner, tenant or operator of the farm regularly produces more than one-half of the commodity so treated; and
• The planting, cultivating, caring for or cutting of trees, or the preparation (other than milling) of trees for market.

For an easement to qualify for a farmer or rancher, it must contain a restriction requiring that the land remain “available for agriculture.” This provision also applies to farmers who are organized as C corporations.

The New Mexico Land Conservation Tax Credit is a state tax credit designed to encourage the conservation of New Mexico’s private open lands. Landowners who donate fee title land or conservation easements may receive a tax credit of 50% of the property’s value, up to $250,000, that can be used as a dollar-for dollar write-off of state income taxes. The tax credit is also transferable, allowing sale of the tax credit to a third party for cash—an attractive option for landowners whose state tax bills are relatively low.

The conservation easement process requires careful coordination, attention to detail, and the help of professional service providers. It does cost money to put an easement in place, but typically the tax benefits of an easement donation more than cover these costs. Landowner costs average about $75,000, but it varies. See our guide for a full breakdown and explanation of costs.

Public benefits of conservation easements:

• Protect water quality
• Conserve wildlife habitat
• Preserve open space
• Preserve working farmland, ranchland, timberland
• Maintain character of rural communities
• Buffer public lands
• Maintain landscapes for tourism
• Require less in public services, generate more in local revenues
• Stretch public conservation dollars