SwampFox

Innovative Financing for Conservation in South Carolina

Submitted by: Robin Underwood on Dec 12, 2007 at 2:27 pm Tagged with: conservation, Income tax, Investment, Tax credits Source: SC Conservation Credit Exchange

The South Carolina Conservation Credit Exchange

Underwood Enterprises, in association with Palmetto Conservation Foundation, announces the establishment of The South Carolina Conservation Credit Exchange. The Exchange connects conservation credit sellers with tax credit buyers. South Carolina taxpayers save money on their state taxes by purchasing tax credits through the SC Conservation Credit Exchange. Credit buyers bring much needed capital to finance the preservation of key conservation properties. Credit sellers are landowners who have donated conservation interests in their property, but have little or no state income tax liability.

Since 2001, owners of land in South Carolina have been eligible for a tax credit for land donated or placed under easement for conservation purposes. Though credits have always been transferable, no effective mechnism for trading the credits has existed until now.

SC Conservation tax credits are a win-win-win. The state conserves key natural and cultural resources at a cost to taxpayers of less than 25% of the land value. Typical projects include farmland, recreational trails, historic sites, scenic vistas, wildlife preserves and forestland. Sellers reduce the cost of their charitable donation by converting credits to cash. Buyers purchase tax credits at a discount, and redeem them at face value on their state tax returns.

Credit buyers may claim full credit against their state tax liability up to $52,500 annually and carryforward any unused portion. “Not only do credit buyers save money, but by voting with their dollars, participants make a powerful statement about how much they value South Carolina’s natural assets,” notes Robin Underwood, Director of the South Carolina Conservation Credit Exchange.

The South Carolina Conservation Credit Exchange is another example of innovation at work in SC. Profits from the Exchange are donated to the Palmetto Conservation Foundation to further outdoor and recreational interests in the state. For more information visit www.conservesc.com, or contact Robin Underwood at 704 975-3016, openspace@bellsouth.net