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4 <br /> Tax Deduction <br /> The Board discussed having the option of abandoning the easement or having it <br /> revert to the Homeowners Association if so desired in the future.. The applicant's <br /> attorney indicates in the attached letter that the holder of the easement must be an <br /> organization qualified in accordance with the Internal Revenue Code in order for the <br /> gift of easement to qualify for a one-time tax deduction. If the easement contains a <br /> provision that the easement can revert to or be assigned to a non-qualifying entity <br /> such as a homeowners association, or if the easement could be abandoned altogether, <br /> then it will not qualify for the deduction. The easement does, however, provide for its <br /> transfer or assignment a qualified organization, as defined by the Internal Revenue <br /> Code. Existing entities to which the easement could be assignee include the Triangle <br /> Land Conservancy and the Conservation Trust for North Carolina. In addition, <br /> Orange County is considering options for establishing a land trust to accept <br /> conservation easements for a variety of purposes, including the preservation of natural <br /> areas and open space as well as agricultural lands. A report on preservation issues, <br /> including options and recommendations for the creation of a land trust, will be <br /> presented to the Board of Commissioners at its January 1997 meeting. Orange <br /> County,by its acceptance of the conservation easement, could serve as a holding <br /> agency until the formation of the land trust, or until another qualifying agency would <br /> be willing to accept the easement. <br /> RECOMMENDATION: The Administration recommends approval of the attached conservation <br /> easement. <br />