How to claim the new Iowa tax credit
for contributions of land for conservation
(effective 2008 tax year)

Thanks to new legislation passed in 2008, Iowa taxpayers can now claim a substantial Iowa tax credit when they donate land or a conservation easement for conservation purposes (full value or bargain sale) to a qualified conservation organization.

Example 1
Donated land or conservation easement value under $200,000

You donate land valued at $150,000 to your county conservation board.
You can claim an Iowa state tax credit of $75,000 (half of $150,000).
You can also claim an itemized deduction of $150,000 as a charitable contribution on your federal income tax (the same as in the past).

Example 2
Donated land or conservation easement value exceeds $200,000

You donate land valued at $500,000 to your county conservation board.
You can count $200,000 of your donation toward your Iowa income tax credit — so you claim a $100,000 tax credit (50% of $200,000). In addition, you could calculate the remaining value of your donation ($500,000 minus $200,000) to claim a $300,000 Iowa itemized deduction.
Meanwhile, you can claim the full $500,000 as an itemized deduction on your federal tax return. For more information on the federal deduction, see the Land Trust Alliance website.

Notes to donors:

Under either of the examples above, if you can't use the entire tax credit this year, you can carry it forward to future tax years.
You cannot claim both the Iowa tax credit and the Iowa itemized deduction for the same donated land value.

Note to easement donors:

Donating a conservation easement qualifies you for a higher federal tax incentive. Under current rules, conservation easement donors can claim more land value as a federal income tax deduction (50% of their income in a given year or 100% for qualified farmers and ranchers — compared to 30% for land donations or other charitable gifts). For more information on the federal tax incentive for conservation easements, see the Land Trust Alliance website.

For more information

Related links on the Iowa income tax credit for contributions of conservation land, effective for the 2008 tax year:

More information on tax issues:
Income taxes | Capital gains taxes | Estate & inheritance taxes | Property taxes | Cautions

This factsheet is provided for information only. Always consult your attorney or tax advisor for legal or professional advice for your situation.

This information released October 2008, Iowa Natural Heritage Foundation

How to claim the new Iowa tax credit for contributions of land for conservation (effective 2008 tax year)

How to claim the new Iowa tax credit
for contributions of land for conservation
(effective 2008 tax year)