After more than a decade, North Carolina has revived a powerful way for landowners to protect the places they love and get something meaningful in return.

Starting in 2025, the North Carolina Conservation Tax Credit will once again reward landowners who choose to preserve farmland, forestland, wildlife habitat, and other valuable landscapes. The program provides a state income tax credit of up to 25% of the fair market value of donated land or conservation easements. That means landowners can receive a tax break worth up to $250,000 for individuals and $500,000 for C Corporations when they permanently donate qualifying property. Credits received may vary depending on the number of qualified applicants.

This isn’t just good news for landowners, it’s good news for North Carolina. For thirty years, from 1983 to 2013, this program helped protect over 262,000 acres across our state. It was a smart investment, too: for every dollar in tax credit issued, North Carolina received at least six dollars’ worth of conserved land. Now, thanks to action from the General Assembly, the program is back for qualifying donations made in 2025 and 2026.

As a proud member of the Land for Tomorrow coalition, our organization helped advocate for the return of this tax credit. Alongside fellow conservation partners from across the state, we worked to show lawmakers how this program supports farmers, strengthens local economies, and protects the lands and waters that make North Carolina so special. We’re proud to have played a part in bringing this critical tool back to life.

What Is the North Carolina Conservation Tax Credit? 

The Tax Credit offers a state income tax credit for donations of land or conservation easements made in perpetuity for conservation purposes, such as preserving working farmland, forestland, wildlife habitats, historic landscapes, or providing public access to trails. A landowner interested in the tax credit would begin by contacting a local land trust, nonprofit, or government agency that’s qualified to accept land donations and can assist them with the process. Land must be certified by the NC Department of Natural and Cultural Resources (NCDNCR) that it provides a public benefit before the  NC Department of Revenue approves a tax credit. The North Carolina Natural Heritage Program has set up a webpage with details: https://www.ncnhp.org/conservation/conservation-tax-credit

Who Can Benefit from the Conservation Tax Credit?

Donations must be made in perpetuity and serve a recognized conservation purpose, such as preserving working farmland or forestland, supporting wildlife conservation, protecting historic landscapes, or providing public access to trails. There are also special provisions for floodplain protection in counties affected by recent natural disasters, as well as for land that buffers military bases and training areas.

Importantly, the program isn’t first-come, first-served. All eligible, certified applications received for a given year will be considered together, and tax credits will be distributed proportionally if the total demand exceeds the $5 million annual program cap. Donations of farmland and forestland will receive priority consideration for the first $3.25 million in credits each year.

It’s important to know that: All approved applications from the same year will be reviewed at the same time. If the total amount of tax credits requested is more than the $5 million limit for the year, each person will get a smaller share based on what they requested.

How to Apply for the NC Conservation Tax Credit

Although application forms will not be available until mid-July 2025, landowners can begin preparing now. Donations made any time in 2025 will be eligible, as long as applications for certification are submitted by January 15, 2026, and tax credit applications are filed by April 15, 2026. Approved credits can then be used starting in the 2026 tax year, which is filed in 2027.

It’s essential to note that while the program cannot guarantee the exact percentage of tax credit a landowner will receive, as this depends on the number of applicants, every certified donation will be awarded some level of credit. Protecting land is a reward in itself. You’re preserving something real, something lasting, and something that will benefit your community and our state for generations to come.

To learn more, contact our Land Conservation Associate Grace at grace@catawbalands.org or email the state program at ctc@dncr.nc.gov. Applications and detailed guidance will be available on the NC Natural Heritage Program website in mid-2025. Visit this page for details: https://www.ncnhp.org/conservation/conservation-tax-credit

The Conservation Tax Credit is a chance to do something big – for your land, for your family, and for North Carolina. Let’s make the most of it.

Quick Facts:

• North Carolina is reinstating the Conservation Tax Credit, which offers a state income tax credit for donations of land or conservation easements made in perpetuity for conservation purposes, such as preserving working farmland, forestland, wildlife habitats, historic landscapes, or providing public access to trails. Additional benefits apply to properties that protect floodplains in disaster-affected counties or buffer military installations. All donations must be permanent and meet state eligibility criteria to qualify.

• The North Carolina Conservation Tax Credit allows landowners to claim up to 25% of the fair market value of the donated land or easement. 

• • • Individuals can receive up to $250,000
    • C Corporations can receive up to $500,000

• All approved applications from the same year will be reviewed at the same time. It is not first come, first serve.

• If the total amount of tax credits requested is more than the $5 million limit for the year, each person will get a smaller share based on what they asked for. Donations of farmland and forestland will be given priority for the first $3.25 million in tax credits each year.

• Land and easement donations made any time in 2025 are eligible for the tax credit.

• • Application forms available: mid-July 2025
  • Certification deadline: January 15, 2026
  • Tax credit application deadline: April 15, 2026
  • Credit usable on 2026 tax return, filed in 2027

Need help donating a conservation easement? Contact us! 

To learn more, contact our Land Conservation Team at grace@catawbalands.org or email the state program at ctc@dncr.nc.gov.

DISCLAIMER: This blog post is intended for general informational purposes only and does not constitute legal or tax advice. Landowners considering a donation of land or conservation easement should consult with a qualified tax advisor to understand the full implications of their donation and eligibility for the North Carolina Conservation Tax Credit. N.C governs the credit. General Statutes § 105-153.11 (for individuals) and § 105-130.34 (for C Corporations). Each land donation is unique, and eligibility, valuation, and final credit amount may vary based on individual circumstances and annual statewide limits.

Photo by Nelson Stegall