Provide Tax Incentives
Case Study:
Overview:
Environmentally sound shoreline management practices can be encouraged by offering tax incentives. For example, much like discounted insurance premiums can be used to reward landowners for implementing approved shoreline practices above what is required by law, tax breaks can be used in a similar manner. Tax breaks can also be given to property owners for donating their land for conservation purposes or for adding a conservation easement to their property to either limit development and/or prevent shoreline hardening (see also North Carolina case study below).
Benefits: Encourages property owners to implement good shoreline management practices that fewer impacts on the environment and public access.
Drawbacks: Can be difficult to enforce and ensure the property owner is still implementing/maintaining the practice. Local governments may dislike tax breaks because it takes away from their tax revenue.
Case Study:
North Carolina Conservation Tax Program
The North Carolina Conservation Tax Program is a tax incentive program to encourage landowners to protect environmentally sensitive lands, including those in high risk erosion areas. In return for donating real property to qualified recipients for conservation purposes, the landowner is allowed a credit against individual and corporate income taxes. Land donations can include fee simple title transfers or less then fee simple title transfers (e.g., conservation easements). Landowners are granted a tax credit equivalent to 25 percent of the fair market value of the donated property interest, up to a maximum credit of $250,000 for individuals and $500,000 for corporations. Any unused portion of the credit may be carried forward for five succeeding tax years.
The program began over twenty years ago when the state first began requiring coastal setbacks. Realizing that the setback regulations would make some lots unbuildable, North Carolina created the tax incentive program to offer people the option of donating unbuildable property to the state in return for tax credits.