| MAINE PRESERVATION Protecting our Heritage Introduction to Maine Preservation's Easement Program A preservation easement is a partial interest in real estate having historic, architectural or archaeological significance. An easement provides for the preservation of the significant features. An owner that donates a preservation easement to Maine Preservation may qualify for a federal charitable tax deduction for the value of the easement donated. A maintenance fee is required for each easement accepted by the organization. A preservation easement provides that the owner sells, bequeaths, mortgages or leases the property subject to the easement provisions. Most commonly, a preservation easement requires the preservation and maintenance of the significant exterior features of protected structures. The easement donor may also extend protection to interior features or the surrounding landscape. Open spaces having special historic and/or archaeological significance may also be the subject of preservation easement restrictions. The conservation of open land lacking special historic or archaeological significance should be handled through the mechanism of a land conservation easement. Maine Preservation can refer interested persons to an appropriate land conservation organization; the Maine Land Trust Network is also an excellent resource for this information. Maintenance, repairs, restoration and alterations of an easement-protected property are subject to the easement provisions, and any changes must have the prior approval of Maine Preservation. Maine Preservation uses the Secretary of the Interior's Standards for the Treatment of Historic Properties in evaluating changes. In addition to limiting changes, preservation easements also require maintenance and in some cases, restoration or rehabilitation of a property. A
sample preservation easement agreement and application form may be obtained
from Maine Preservation upon request. The terms of each easement and any
special requirements will vary from property to property. Please contact
Maine Preservation at (207) 775-3652 for more information.
Maine Preservation Easement on the Sabbathday Lake Shaker Village Located at the headwaters of the Royal River in New Gloucester and Poland , Maine , Sabbathday Lake Shaker Village , a National Historic Landmark, is one of Maine ’s most important and intact cultural landscapes and a key heritage tourism destination in southern Maine . Home to the world’s only active Shaker community, Sabbathday Lake Shaker Village contains fifteen structures, nearly 1,500 acres of mixed forestland and several hundred acres of farmland, orchards, wetlands, recreational lands and the last undeveloped shoreline on Sabbathday Lake. The property is included on the National Park Service’s Shaker Historic Trails and offers exceptional recreational opportunities for hiking, hunting, fishing, cross-country skiing, nature study, and picnicking. Maine Preservation also holds easements on properties in Belfast, Cape Elizabeth, Sanford, Harrison and Yarmouth.
The
Dyer Hutchinson house in Cape Elizabeth _____________________________________________
PRESERVATION
PROTECTIONS:
Donations
of preservation easements on certain properties may qualify for federal
charitable tax deductions for easement contributions of “certified historic
structures” which are defined as either (1) those individually listed
in the National Register of Historic Places, or (2) those certified as
contributing to a National Register Historic District, or (3) those contributing
to a certified local historic district. (a) Charitable Deduction: Gifts of certain property interests to governmental bodies or to qualified charitable organizations are deductible for federal income tax purposes as charitable contributions in the amount of the appraised value of the property interest given. The Internal Revenue Code has specifically recognized the deductibility of an easement that protects a historic building (Section 170 [b]). To qualify for federal tax benefits, an easement must be “for conservation purposes”, one of which is “the preservation of a historically important land area or a certified historic structure”. Easements on building interiors are tax deductible only if there is a substantial and regular opportunity for the general public to view the architectural characteristics covered by the easement. Federal
tax benefits apply only where the easement donation is made to a “qualified
organization,” which is defined as a governmental body or a charitable
organization which has the resources to enforce the restrictions and which
can demonstrate a commitment to protect the conservation purposes of the
easement. The easement must be granted in perpetuity. (b) Investment Tax Credit: Donors
of preservation easements who are interested in taking an Investment Tax
Credit for qualified rehabilitation expenditures should note that the
Internal Revenue Service has ruled that the property’s basis, on which
depreciation deductions are calculated, must be reduced by the value of
the easement. The donation of a preservation easement may therefore
reduce the dollars needed to meet the “substantial rehabilitation” test
as well as reduce depreciation deductions. It is recommended that
the donor evaluate all of these aspects prior to making the donation of
the easement. (c) Federal Estate Tax Implication: Gifts of cash or property, including preservation easements, to public charities may reduce the federal estate taxes that would otherwise be payable at the donor’s death. If the gift is made during the lifetime of the donor, the value of the gift will not be included in the value of the donor’s estate. The results will be lower taxes for the estate, as well as for the donor’s heirs, successors or assigns.
Persons
interested in donating a Preservation easement should complete the Maine
Preservation application form and submit it with the non-refundable application
fee to: Maine Preservation 500 Congress Street , 2nd Floor
Portland , Maine 04101 Upon receipt of the application and fee, Maine Preservation will visit and document the present condition of the property. Subsequently, the applicant and the Maine Preservation Easement Committee will meet to work out the basic terms of the agreement, and the agreement will be submitted to the Maine Preservation Board of Trustees for ratification. The applicant shall be required to submit an appraisal of the property, a title report, a survey or lot map indicating structures and other improvements, and a casualty and liability insurance policy listing Maine Preservation as an additional insured. Maine Preservation cannot participate in the appraisal process or render advice regarding federal tax implications of specific easements. Applicants intending to take advantage of federal tax incentives should obtain independent advice from their accountant or attorney. Upon completion and final approval of the Preservation Agreement, the applicant pays a maintenance fee to Maine Preservation. Maine Preservation will deliver the easement for recording at the local Registry of Deeds. If the property is encumbered by any existing mortgage, then the mortgagor’s consent must be obtained as well.
COSTS: 1. Application Fee -- Non-refundable:
Properties valued up to $100,000: $150.00 Properties valued in excess of $100,000: $300.00 • Maintenance Fee: a monetary contribution is to be made to the Maine Preservation Easement Fund, established to provide for expenses associated with administration of the Preservation Easement Program. The total value of the Maintenance Fee shall be determined based u pon property value and estimated expenses to administer, monitor and enforce the easement (a minimum of $25,000 or more); however, this amount is determined for each easement based upon the specifics of the property and the complexities of the easement agreement itself.
MAINE PRESERVATION EASEMENT FUND: Participants in the Maine Preservation Easement Program make a financial contribution to the Maine Preservation Easement Fund. Income generated from the Fund enables Maine Preservation to monitor each preservation easement it accepts. For this contribution, Maine Preservation will consider a wide range of funding options including gifts of cash, securities, or other property. The donor may pledge payment of the Endowment Contribution as one lump sum or on an installment basis over several years under provisions of a Pledge Agreement drafted by Maine Preservation. The maintenance Fund contribution is tax deductible to the extent allowed by law. All contributions to the Fund are pooled and all properties in the Program will be eligible to benefit from the protection of the Fund. The income generated by the Fund and principal will be applied as follows: 1) to pay expenses associated with the management of the Program, 2) to the regular inspection of properties participating in the Program, 3) for the enforcement of the preservation easement, and 4) for any repairs which the Maine Preservation may elect to make to these properties.
Monitoring: • A qualified staff member or consultant designated by Maine Preservation shall conduct formal inspections of each easement property on an annual or more frequent basis. The inspector shall have the right to enter upon the premises to conduct such a review. • When an easement property is undergoing rehabilitation, the Maine Preservation inspector(s) shall retain the right to inspect all related work on a monthly basis. • During each inspection visit the inspector(s) shall review the property to assess improvements to the site or structures, sub-standards or unauthorized alterations, and major defects or deterioration. ____________________________________________________
For more information, or to arrange for a meeting or site visit, contact Maine Preservation at (207) 775-3652 or at info@MainePreservation.org.
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Maine Preservation's Easement Program was established to preserve Maine's historic and architectural heritage by taking and administering preservation easements in significant historic properties. Maine Preservation is a charitable non-profit corporation, qualified under Maine Law (33 M.R.S.A. 1551) to hold easements on historic properties. 
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