TRENTON – The Senate Environment and Energy Committee advanced legislation sponsored by Senators Bob Smith and John McKeon that would incentivize conservation by establishing a gross income tax deduction for the sale of land for conservation purposes.

“Nearly 30 percent of land in New Jersey is undeveloped and unpreserved,” said Senator Smith (D-Middlesex/Somerset), who is also the Chair of the Environment and Energy Committee. “By providing a tax deduction for the sale of land for conservation, we can make it more financially feasible for landowners to conserve environmentally sensitive areas and ensure the continued presence of green space across New Jersey.”

The bill, S-3287, would allow a taxpayer a deduction against gross income for the sale of an interest in real property to a qualified organization for conservation purposes. The amount of the deduction would be equivalent to the capital gain realized by the taxpayer as determined for federal income tax purposes.

The term “qualified organization” would include, but not be limited to, a governmental unit, a charitable trust, foundation or charitable non-profit organization that participates in the Green Acres program, Blue Acres program, farmland preservation program, a park or forestry or an open space and recreation space preservation or conservation program, as well as other federal and state conservation programs.

“As it stands, there is well over a million acres of land in New Jersey available for conservation, but for landowners who may want to conserve their land there is little financial incentive to do so,” said Senator McKeon (D-Essex/Passaic). “This bill would provide that incentive without the need for the state to spend additional dollars, enabling the conservation of more of our natural environment and benefitting both these landowners and the state’s residents.”

The Committee advanced S-3287 in a unanimous vote.