North Carolina landowners have more time to take advantage of a valuable incentive that can lower their state taxes while permanently protecting their farms, forests, and other natural lands.
The Conservation Tax Credit has been extended until 2030, giving more families the opportunity to explore whether it fits their land and financial goals.
The North Carolina Conservation Tax Credit rewards 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 for landowners; it’s good 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, at least six dollars’ worth of critical land in North Carolina was conserved. Now, thanks to action from the General Assembly, the program is back for qualifying donations made through 2030.
In 2025, the first year of its return, the credit helped conserve 4,128 acres across 25 counties in North Carolina, providing a variety of public benefits. Out of the acres conserved in 2025, 3,318 acres were for forestland and farmland preservation, 801 acres were for fish and wildlife conservation, and 9 acres were preserved for historical landscape conservation.
As a proud member of the Land for Tomorrow coalition, our organization helped advocate for the return and continuation 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.
Turning Conservation into a Legacy
Scott McNeely is a landowner from Western North Carolina who has permanently protected three properties through conservation easements. He received a Conservation Tax Credit in 2025, the program’s most recent application cycle. Land conservation is important to him and his family, who enjoy North Carolina’s natural spaces.
“I’m an avid hunter and fisherman, an outdoors person, and my wife is a horse fanatic, and so I think it’s very important that we preserve as much farmland or woodland in a natural state as we can, and have those places in the future, because if we don’t protect them now, they’ll be gone,” he said.
The conservation tax credit helped him preserve the land he so loves, and he believes that it is a great way for other landowners to do the same.
“I think the tax conservation credit is a great benefit to the entire public in North Carolina, not just the individual landowners, because if it motivates somebody to take action, then that’s one more piece of property that’s going to be more green space, whether it be for wildlife or visual pleasure,” he said.
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 or nonprofit qualified to accept land donations and assist with the process. The NC Department of Natural and Cultural Resources (NCDNCR) must certify the land as providing 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: Conservation Tax Credit | NHP.
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. Special provisions also apply to floodplain protection in counties affected by recent natural disasters, as well as to 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 exceeds the $5 million limit for the year, each person will receive a smaller share of the remaining credits. Donations of farmland and forestland will be given priority for the first $3.25 million in tax credits each year.
Understand the Conservation Tax Credit process with this 2-pager
How to Apply for the NC Conservation Tax Credit
Donations made at any time in a year are eligible, as long as certification applications are submitted by January 15 of the following year and tax credit applications are filed by April 15 of the following year. Approved credits can then be used starting in the following tax year, which is filed two years after the donation is made.
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, lasting, and beneficial to your community and our state for generations to come.
To learn more, contact the state program at ctc@dncr.nc.gov. Applications and detailed guidance are available on the NC Natural Heritage Program website. Visit this page for details: Conservation Tax Credit | NHP.
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’s Conservation 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. 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 together. It is not first-come, first-served.
- If the total amount of tax credits requested exceeds the $5 million limit for the year, each person will receive a smaller share of the remaining credits. 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 in mid-July of each year
- Certification deadline: January 15, the following year
- Tax credit application deadline: April 15 the following year
- Get detailed information: Conservation Tax Credit | NHP
Need help donating a conservation easement? Contact Your Local Land Trust!
To learn more, 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.
