FAQ

What is the conservation tax credit?

A landowner who donates their land to the State, a local government, or an organization that is qualified to receive the land donation may be eligible for an income tax credit up to 25% of the fair market value of the land at the time of the donation.

How does it work?

Any C Corporation or individual landowner who has land that meets any of the uses as public benefit listed below may be eligible to donate their land in fee simple to the State, a local government, or a body that is both organized to receive and administer land for conservation purposes and qualified to receive charitable contributions pursuant to GS 105-130.9, such as a land trust.

At this time, credit only applies to fee simple donations and conservation easements or agreements are not eligible for a conservation tax credit.

What property qualifies for donation?

To qualify for conservation tax credits, the property must be donated in perpetuity for one of the uses listed below and must accepted in perpetuity for the qualifying use for which the property is donated.

Lands required to be dedicated pursuant to local governmental regulation or ordinance and dedications made to increase building density level permitted under a regulation or ordinance are not eligible for this credit.

Forestland and farmland properties must be engaged in commercial growing of trees under a management program or actively engaged in commercial production or growing of crops, plants, or animals under a management program.

  •          forestland or farmland preservation

  •          fish and wildlife conservation

  •          historic landscape conservation

  •          public trails or access to public trails

  •          as a buffer to limit land use activities that would restrict, impede, or interfere with military training, testing, or operations on a military installation or training area or otherwise be incompatible with the mission of the installation

  •          floodplain protection in a county that in the five years preceding the donation, was the subject of a Type II or Type III gubernatorial disaster declaration, as provided in G.S. 166A-19.21, as a result of a natural disaster.

o   The following counties are eligible for tax year 2025: Alexander, Alleghany, Ashe, Avery, Beaufort, Bertie, Brunswick, Buncombe, Burke, Cabarrus, Caldwell, Carteret, Catawba, Cherokee, Chowan, Clay, Cleveland, Columbus, Craven, Dare, Davidson, Davie, Duplin, Edgecombe, Forsyth, Gaston, Graham, Haywood, Henderson, Hertford, Hyde, Jones, Lenoir, Iredell, Jackson, Lee, Lincoln, Macon, Madison, McDowell, Mecklenburg, Mitchell, Nash, New Hanover, Onslow, Pamlico, Pender, Perquimans, Pitt, Polk, Randolph, Robeson, Rowan, Rutherford, Sampson, Stanly, Stokes, Surry, Swain, Transylvania, Union, Watauga, Wayne, Wilkes, Wilson, Yadkin, Yancey

Who is eligible to accept donations?

The State, a local government, or a body that is both organized to receive and administer land for conservation purposes and qualified to receive charitable contributions pursuant to GS 105-130.9, such as a land trust.

Who determines if the land is eligible?

The NCDNCR will coordinate the review of land eligibility, relying on other agencies with relevant expertise for certification. Detailed review criteria will be available later this summer.

How is the value of the donation determined?

A self-contained or summary appraisal report in accordance with Uniform Standards of Professional Appraisal Practice is required to be submitted to the Department of Revenue. For fee simple absolute donations of real property, the county’s appraised value, as adjusted by the sales assessment ratio may be submitted in lieu of an appraisal report.

The landowner is responsible for maintaining and submitting records to the NCDOR to substantiate the value of the claim.

How much credit is allowed per donation?

Generally, up to 25% of the fair market value, not to exceed $500,000 for C Corporations or $250,000 for individuals, may be available for tax credit. Credit may be carried forward for five years. Additional details are found in the legislation which should be understood before applying for tax credit.

How much credit is available in total for the program each year?

There is a maximum of $5 million in tax credit allowed each year for all donations. Farmland and forestland will be given priority consideration for the first $3.25 million each year. If the total demand exceeds $5 million in a year, credit will be pro-rated among all certified applications received by NCDOR. 

All eligible and certified donations will be considered for tax credits on a pro-rated basis, not on a first-come, first-served basis.

What is the timeline for receiving credit?

Projects donated in a given calendar year must be certified by NCDNCR and submitted to NCDOR by April 15 of the following year for consideration in that tax year. For instance, if you donate your land in 2025, you must apply to the Department of Revenue by April 15, 2026, to be eligible for credit in the 2026 tax year.

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