Why was the Exchange created?
We chartered the Exchange to assist those landowners and land trusts wishing to take advantage of the SC Conservation Credits by providing a simple, credible, one-stop shopping option for sellers and buyers of conservation credits to get together.

Who benefits from the Exchange? In short, everybody!

• Landowners donating easements eligible for conservation credits are assured of high cash value for those credits they do not or cannot use;
• Land Trusts are able to focus on that part of the conservation deal for which they were created – providing easements and long-term monitoring -- while leaving the “banking/exchange” function to others. This avoids a possible conflict of interest if a Land Trust were to provide the easement as well as serve the exchange function;
• Taxpayers purchasing credits enjoy immediate tax advantages through the power of dollar-for-dollar tax benefits gained at less than face value;
• And finally, all citizens of South Carolina benefit, as the Exchange helps to further the conservation of South Carolina's natural and cultural heritage.

Who are the principals involved in the Exchange?
Robin Underwood, a financial analyst and conservation consultant working in the Carolinas, manages the exchange. Underwood has over twenty years experience with income, estate and investment planning.  Under a grant from the John S and James L Knight Foundation, we presented continuing education courses to accoutants and attorneys on conservation tax incentives.  She is an alumna of the Center for Whole Communities in Vermont and recipient of the Girl Scouts Woman of Distinction in Environmental Leadership 2007 award.  

Credit for the framework of the exchange belongs to Carlton Owen, president and CEO of US Endowment for Forestry and Communities, and Cary Hall, tax attorney and partner in the Wyche Law Firm based in Greenville, SC.

Are there other credit exchanges in other states?
Twelve states have state-based credits designed to encourage the donation of qualified conservation easements. Only four of those states – Colorado, Virginia, New Mexico and South Carolina – allow the transfer of credits to others. A number of exchanges have been chartered in both Colorado and Virginia.

North Carolina has a conservation credit program, but the credits may not be transferred to other taxpayers.

Just how does the Exchange work?
In short, once a landowner agrees to donate a qualified conservation easement to a land trust and all the paper work is done – easements are signed and recorded, qualified appraisals are done, etc. – South Carolina law provides for credits against South Carolina taxes for the donor to either use against their own taxes or to donate or sell to others.

For easements donated after May 31, 2001, on a qualified property in South Carolina a dollar-for-dollar tax credit equal to 25% of the deduction attributable to the gift is generated. The credit may not exceed $250 per acre or a total of $52,500 per year. Any unused credit may be carried forward until used. The unused credit may then be transferred or distributed with our without consideration, to another taxpayer upon written notification to, and approval of the transfer by, the SC Department of Revenue.

The Exchange will ensure that all necessary paper work and approvals are obtained as well as manage the transaction on behalf of the landowners (sellers) and buyers.

How does the Exchange add value to the land trust process?
In addition to the market advantages to both sellers and buyers of credits, the Exchange is committed to upholding the highest principles and ethics associated with land conservation as well as federal and state tax laws and regulations. We won’t buy or sell just any credit. Before agreeing to make a market in specific credits we review the organization accepting the easement, the vendor conducting the valuation appraisal as well as testing the entire transaction to our in-depth knowledge of not only SC Act 283 but the South Carolina and U.S. tax codes to attain a high degree of confidence that the transaction is of the highest conservation quality and in full compliance with all codes and regulations. In short, the Exchange is your “Good-Housekeeping Seal of Approval” of the quality of the underlying transaction.

As a holder of a credit, why should I work with the Exchange?
Working through the South Carolina Conservation Credit Exchange provides many benefits to the seller of credits…among them:

• Top dollar … for your credits with minimum effort on your part;
• Simplicity … with one-stop shopping in dealing with all aspects of the transfer from finding and qualifying buyers to completing forms and working with the Department of Revenue;
• Integrity and credibility … by working with trusted and proven individuals who share your commitment to conservation

As a buyer of a credit, why should I work with the Exchange?
Working with and through the South Carolina Conservation Credit Exchange provides credit buyers with many benefits … among them:

• Value … through the purchase of credits at a fair price to the seller and yet with a margin to make the purchase worth your while in terms of residual tax value;
• Simplicity … via one-stop shopping for credits that have been pre-approved and that are most likely to stand the test of time and reviews by the Department of Revenue and the IRS;
• Peace of mind … in knowing that the credit you are buying has met rigorous reviews and an independent set of eyes beyond that of the receiving organization; and
• Conservation … in knowing that by working through the Exchange you are helping to protect important conservation lands in South Carolina