Updates
This web page will continue to be updated as more information becomes available.
Last updated: May 24, 2023
Contact
For more information or to request an amendment to your conservation easement, please contact Aaron White at 651-240-7654 or via email, amendments@mnland.org.
What has changed?
Congress passed the Charitable Conservation Easement Program Integrity Act as part of the year-end omnibus spending bill. The Act was signed into law on December 29, 2022. The legislation effectively shuts down a tax avoidance scheme that took advantage of the federal conservation easement tax incentive.
The Act also provides taxpayers the opportunity to correct certain “defects” (in the eyes of the Internal Revenue Service) in a conservation easement within 90 days after the publication by the IRS of its “safe harbor” provisions. These provisions address extinguishment of the conservation easement and boundary line adjustments.
Who does this affect?
This provision may impact you if you donated all or part of the value of a conservation easement to the Minnesota Land Trust AND if you took or plan on taking a federal income tax deduction for that gift within a certain period.
When does this take effect?
On April 10, 2023, the IRS notified the public that its safe harbor language will become effective as of April 24, 2023. That effective date results in a 90-day window to record an amendment to a conservation easement adding the language that the IRS prefers. The deadline is July 24, 2023.
In order to meet the July 24, 2023, recording deadline, please submit the required information outlined here to the Land Trust no later than June 30, 2023.
What are the next steps to take?
If you donated all or part of the value of a conservation easement to the Minnesota Land Trust and if you took a federal income tax deduction for that gift, we recommend that you contact your tax professional to see whether you would benefit from amending the conservation easement to incorporate the IRS’ safe harbor provisions.
While the Land Trust believes that a safe harbor amendment will benefit only some landowners, your tax or legal professional must help you make that determination. The Land Trust cannot provide legal or tax advice.
The Land Trust has outlined additional information including the process for requesting an amendment from the Minnesota Land Trust and an amendment template to use. Please use this checklist to ensure you submit all required documents.
How the Minnesota Land Trust can help
After you have checked with your tax professional, let us know if you think you need to amend the conservation easement protecting your land.
The Minnesota Land Trust is providing additional information, including the process for requesting an amendment from the Minnesota Land Trust and an amendment template to use. Please use this checklist to ensure you submit all required documents.
While we will do our best to minimize costs, please note that any costs incurred by the Minnesota Land Trust associated with an amendment will be at your own expense. We estimate that the Land Trust’s costs will be $900 per amendment.
In order to meet the July 24, 2023, recording deadline, please submit the required information outlined here to the Land Trust no later than June 30, 2023.
For more information and help
The Land Trust Alliance, a conservation organization that represents land trusts across the country including the Minnesota Land Trust, has provided additional information regarding the safe harbor provisions.
The IRS published its notice on April 10, 2023 and land trusts across the country are currently identifying how best to support people who generously donated conservation easements. For that reason, please check back to this web page as it will be updated as more information becomes available.
For more information or to request an amendment to your conservation easement, please contact Aaron White at 651-240-7654 or via email, amendments@mnland.org.
Additional resources linked on this page:
- Minnesota Land Trust Letter re: IRS Notice 20232-30 and Amendment Request Process
- Amendment to Conservation Easement Template
- Checklist for Safe Harbor Amendment Request
- IRS Notice 23-30, Safe Harbor Bulletin
- Land Trust Alliance Safe Harbor Advisory (April 11, 2023)
Thank you for your partnership and commitment to Minnesota conservation.
