On August 17, President Bush signed into law newly-enacted reform legislation that keeps historic conservation easements (also known as preservation or façade easements) an important tool for preserving historic resources.

This legislation is the culmination of intense scrutiny of the federal easement tax incentive program.  Starting in 2004, the Internal Revenue Service highlighted problems with easement valuation, and also removed long-standing guidelines on easement valuation following national news stories that featured abuses of the program.  Since that time, national and local preservation organizations have mobilized in support of easements, which are used to provide both ongoing protection for properties as well as tax benefits for easement donors.  Instead of eliminating the program entirely, they argued, a better approach would be to fine-tune the donation process and to concentrate on punishing abuses.

The result is exactly that.  Not only does the program survive, but for tax years 2006 and 2007, donors can actually deduct a higher yearly amount and/or carry over tax benefits over a longer period of time.  Preservation easements remain the only federal tax incentive available to owners of non-income producing historic properties.  To read about the changes to the program, click here to read an excellent overview on the legislation from the National Trust for Historic Preservation.

Preservation Ohio administers the largest statewide preservation easement program in Ohio.  The organization maintains easements that protect properties as diverse as an 1871 white frame church in Ottawa County, two 1830-era brick houses in Butler County, and the historic Colony Theatre in downtown Marietta, Washington County (pictured above). For more information on the Preservation Ohio Easement Program, click here.

Photo Credit: Colony Theatre, Marietta/Preservation Ohio File Photo