GEORGIA TAX LAW
TAX INCENTIVES FOR CONSERVING AGRICULTURAL LAND

Many Georgia farm families would like to preserve the family farm for future generations.  New federal and state laws increase the tax advantages of donating interests in agricultural property to qualified recipients.  The latter include government agencies and nonprofit corporations organized to conserve real property and open space, such as the Georgia Agricultural Land Trust.  This paper summarizes tax incentives under federal law.

Georgia recently passed the Georgia Conservation Tax Credit Program.  The requirements parallel federal law to a large degree, but the Georgia incentive is a tax credit, rather than a deduction from taxable income.  While the advantage of the latter depends on what tax bracket the taxpayer is in, a tax credit is a dollar-for-dollar deduction from taxes owed the State of Georgia.

The Georgia tax credit is for 25 percent of the value of the donation, up to a maximum of $250,000 for individuals, $500,000 for corporations and $1 million for partnerships.  There is a ten-year carry forward of any unused credit.  Both the land interest and the recipient must be approved by the Georgia Department of Natural Resources.  Farmland and timberland are qualifying categories.

See: http://www.glcp.georgia.gov/00/channel_title/0,2094,82613131_114687036,00.html

The foregoing is a simplified overview of current tax laws, and is neither complete nor meant as tax advice to any individual taxpayer.  Restrictions and Limitations apply.  Please contact your own tax adviser to determine how these provisions may apply to your situation.

GALT is a 501(c)(3) nonprofit corporation