Tell your clients about tax savings that make a difference in people’s lives.  Show them how to:

  • Save this year and every year on their state income tax
  • Direct their tax dollars to conservation

South Carolina Conservation tax credits have been around since 2001, but until now, there has not been an efficient market to connect sellers and buyers. The Exchange provides the expertise and service to make the buying of credits manageable and profitable for your clients.

Potential buyers can submit their request for credits HERE. We notify them when we have found a qualified seller, and they pay for the credits once we receive authorization for the transfer from the SC Department of Revenue. An Exchange transaction fee is deducted from the seller’s payment, the buyer pays no fees beyond the stated purchase price.

Buyers report the tax credit on Form SC 1040TC and Form TC-19 starting with line 6.

Federal Guidance* on income tax treatment of state tax credits for:


IRS Memorandum 200126005 states the tax credits are deductible as state income tax paid on the buyer’s federal return.  See CCM 201147024 which suggests credit buyers recognize gain on the difference between the purchase price and face value of the tax credits claimed.


A 2011 tax court ruling determined the sale of conservation credits generates capital gain income.  The cost basis is zero and the holding period begins on the date the credits were earned by making the conservation gift.

See 136 TC 15

“Our wounds are often the openings into the best and most beautiful part of us.”

SC Encourages and Rewards Landowners for Stewardship

Under the Conservation Incentives Act (Act 283) passed by the South Carolina Legislature in 2001, the Palmetto State joined four other states offering transferable credits designed to encourage private landowners who donate qualified land or conservation easements.

Key Provisions of the Conservation Incentives Act

The law allows a taxpayer who is entitled to and claims a federal charitable deduction for a gift of land for conservation or for a qualified conservation contribution (conservation easement) donated after May 31, 2001, to claim a state income tax credit equal to 25% of the value of the donation up to $250 per acre.  Taxpayers may use up to $52,500 credits per year.  Any unused credits can be carried forward until used.  For more information visit SC Dept of Revenue Tax Incentives:  SC Conservation Credit

More on Easements…

 The Land Trust Alliance  provides information and resources to conserve land for the benefit of communities and natural systems. Find your local land trust here:  SC Land Trust