The benefits of preservation easement donation are numerous.The donor of a preservation easement that meets certain standards can treat the donation as a charitable contribution, can claim reduced tax liability for a property, and can protect a property’s historic integrity into the future. Diminished tax liability includes a positive impact on both estate and real property taxes, as Ohio law specifically provides that such easements are to be taken into consideration in valuing property for tax purposes. Such donations can have a positive impact on commercial developments utilizing the Federal Rehabilitation Tax Credit and/or the new Ohio Historic Preservation Tax Credit. Please note that the timing of easement donation and commencement of work on a tax credit project must be timed so as to maximize both benefits – and can actually create scenarios to make tax credit use possible where it would otherwise be unavailable.
The appraised value of an exterior-only preservation easement can vary based on economic conditions, particularly those involving the forfeiture of development options associated with the parcel. Such donations of development rights and “air rights” can be paired with preservation easements for maximum benefit. Preservation Ohio has access to the services of a consultant with extensive experience in maximizing financial benefits in similar transactions in the Chicago, Illinois market.
The Preservation Ohio Preservation Easement Program also offers a unique opportunity for you to benefit your own community through easement donation. If there is a local preservation or downtown organization that is a Preservation Ohio affiliate or chapter in the city or area in which the property is located, that organization can be involved in the easement monitoring process and monitoring fee donation.
Most importantly, easement donation means perpetual protection for a property’s historic features. Instead of relying on the hope that future owners and local government will act consistent with your wishes, those features will be monitored and safeguarded.
Check with Preservation Ohio for important recent federal legislation concerning easement donation.