How much income can a conservation easement deduction offset?

Up to 50% of the contribution base each year, or up to 100% for a qualified farmer or rancher when farmland stays restricted to farming, with any excess carried forward for up to 15 years. For tax years after 2025 the 0.5% floor on charitable deductions also applies.

Why are easement deductions denied?

Common reasons are deeds that fail the perpetuity requirement and inflated appraisals. The easement must be a qualified conservation contribution: a qualified real property interest, given to a qualified organization, exclusively for a conservation purpose, and protected in perpetuity, supported by a qualified appraisal.

Direct Conservation Easements

A landowner donates a permanent restriction on land to a qualified conservation group and may claim a charitable deduction.

IRS scrutiny

Frequently examined. Details, valuations and documentation matter a great deal.

Rules, risks and sources

Key rules

Must be a 'qualified conservation contribution' under §170(h): qualified real property interest, qualified organization, exclusively for a conservation purpose, granted in perpetuity; qualified appraisal by a qualified appraiser and substantiation requirements. Qualified conservation contributions by individuals are deductible up to 50% of the contribution base (100% for a qualified farmer or rancher, where land used in agriculture stays restricted to that use), with a 15-year carryforward (§170(b)(1)(E)).

Key risks

Perpetuity, deed-wording and appraisal defects are frequently litigated (Oct. 19, 2026: Del Monte LLC, T.C. Memo. 2026-107, disallowed facade-easement deductions because the extinguishment terms failed the perpetuity requirement); valuation penalties; permanent loss of development rights. The IRS now coordinates all conservation and historic-preservation easement enforcement through its Office of Conservation Easements (IR-2026-95, Aug. 19, 2026).

Primary sources

Facts checked 2026-10-20.

Direct Conservation Easements

Overview