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As land values escalate and public funding for land conservation is constrained by annual general obligation bond spending caps, voluntary donations of land to public and private conservation organizations are an increasingly important option for protecting Massachusetts’ natural resources.  Many landowners—particularly owners of large parcels of land in Developing Suburbs—want to preserve their property and livelihoods, and if possible, hand down to their children the acreage they own. By permanently donating or selling the future development rights to their land to a non-profit conservation organization or a government entity, a landowner may immediately obtain a federal income tax charitable deduction, and reduce the market value of the acreage used to compute estate taxes. However, the out-of-pocket expenses involved in making a donation of land (including attorney fees and appraisal costs) have discouraged many lower and middle income landowners from completing such transactions.

8)    Establish and expand conservation tax credit programs
Existing Massachusetts tax law (MGL Chapter 62, Section 6) provides income tax incentives for private landowners to conduct a wide range of environmental improvements, including making investments in renewable energy sources, residential lead removal, and Title V septic system upgrades. A state income tax credit for land conservation would compliment these existing credits by rewarding landowners who choose to conserve their land for current and future public benefit.

8.a    The Legislature should adopt Governor Patrick’s amendment to the state conservation tax credit legislation or implement the conservation tax credit as a standalone piece of legislation

9)    Expand the use of Conservation Restrictions and Agricultural Preservation Restrictions
A Conservation Restriction is a voluntary, legally binding, permanent agreement between a landowner (grantor) and a holder (grantee), a public agency or a private non-profit land conservation organization. The grantor agrees to limit the use of his/her property for the purpose of protecting its conservation values. The conservation restriction is recorded at the Registry of Deeds and runs with the title. By permanently donating or selling the future development rights to their land to a nonprofit conservation organization or a government agency, a landowner may immediately obtain a federal income tax charitable deduction, and reduce the market value of the acreage used to compute estate taxes. Agricultural preservation restrictions (APR) are a specific type of conservation restriction designed to help farmers realize equity without being forced to sell their land for development purposes. The equity is often reinvested back into the protected farm by way of the purchase of more land, equipment or buildings and through the retirement of farm debt.

Legislation proposed by Representative Kulik would help to make these tools more effective.  By strengthening the durability of conservation restrictions, this legislation will enhance innovative land protection across the Commonwealth. Enabling land trusts and other eligible organizations to co-hold APRs with the Department of Agricultural Resources will assist the Department in negotiating, funding, and enforcing these restrictions, and help foster public-private partnerships that are often necessary to complete such projects.

9.a    The Legislature should amend the Conservation Restriction and Agricultural Preservation Restriction statutes to increase their effectiveness

9.b    The Legislature should provide adequate resources and funding for the Agricultural Preservation Restriction (APR) Program. 

10)    Increase participation in the Chapter 61 programs
Currently, 15% of eligible landowners in the Commonwealth are enrolled in Chapter 61, 61A and 61B, which provides for a reduction in property tax assessments for land that is voluntarily maintained in active forestry (Chapter 61), productive agriculture or horticulture (Chapter 61A), or open space and recreational (Chapter 61B) uses.  Chapter 61 was recently rewritten to remedy existing loopholes, make it more equitable and overall improve its effectiveness at preserving open space.

Additional actions could allow or encourage more landowners to participate in these programs.  Adjustments to the 5-acre minimum threshold for participation in the Chapter 61A program could allow more very small farms growing high value crops to participate in the program.  By classifying land enrolled in these programs as open space for tax purposes (instead of commercial land), municipalities can help to encourage more landowners to participate. 

10.a    The Legislature should reevaluate the current 5-acre threshold for participation in the Chapter 61A tax abatement program 

10.b    Municipalities with split tax rates (residential/commercial/open space) should classify Chapter 61 (A&B) land as open space, not commercial land

11)    Increase estate planning assistance to farmers and owners of natural resource lands
One key to preserving family farms and natural resource lands in Metro Boston is to help farmers and other landowners successfully transfer their land and operations to the next generation.  Estate planning assistance can raise awareness of sale or transfer options that can provide inheritance benefits comparable to simple fee transfer to a developer.  The Cooperative Extension at the University of New Hampshire currently operates a successful series of workshops on this topic; which could be replicated in Metro Boston. 

11.a    A state agency or university should convene a working group to coordinate and expand estate planning programs in Massachusetts