Recordkeeping: conservation easement tax credit
When claiming this credit, you must keep the following required documentation for your records:
- copies of all property tax bills
- copies of canceled checks or other supporting documentation as proof of payment
- copy of the deed or other instrument that records the easement
- copy of the property tax map
- documentation to support the computation of the allocation for the portion of the allowable real property taxes for just the land (buildings, structures, or improvements are not includable)
- organizational chart that includes entity names, identification numbers, and percentage of ownership
- records to substantiate the conservation easement’s compliance with IRC section 170(h), including, but not limited to:
- a copy of federal Form 8283, or
- a letter from the conservation agency stating the conservation easement was donated or purchased:
- for no consideration or a nominal amount, or
- for less than fair market value (FMV). In this case, an appraisal indicating the FMV of the conservation easement at the time of the purchase must accompany the letter. The appraisal must be made by a qualified appraiser as defined in federal regulations section 1.170A-13(c)(5).
Note: We may require additional information based on the specific facts of your credit claim.
To claim the credit, you’ll need to file either:
- Form CT-242, Claim for Conservation Easement Tax Credit, if you’re a corporation; or
- Form IT-242, Claim for Conservation Easement Tax Credit, if you’re not a corporation.
See Conservation easement credit for detailed information about the credit and to access the credit forms.