A conservation easement, or simply "easement", is a recorded land use agreement in which a property owner conveys to a governmental unit or charitable organization, i.e., the "easement holder", certain rights to be enforced by the easement holder for the public's benefit. A conservation easement ensures that the historic, scenic, natural or open space characteristics that make the property worthy of conservation are specified and protected against intentional or unintentional destruction. Once the easement is recorded, it is self-enforcing to a certain extent; it provides legal notice that certain uses of the property are precluded due to clauses in the easement agreement.

Typical easement provisions restrict the property owner's rights to use the property in ways that may be at odds with the historical or environmental significance of the property. Also, the easement holder may conduct periodic inspections of the property to enforce the easement's restrictions and consult with owners regarding permissible activities. Easements bind current and future property owners to abide by the terms of the easement's provisions. Often, all that may be required is upkeep of a historic building's facade.

For federal tax purposes, the easement must be created in perpetuity. The IRS authorizes a charitable contribution deduction for the value of conservation easements granted to a qualified organization "exclusively for conservation purposes". As defined by the IRS, a "qualified organization" is a publicly supported charity or governmental unit. Historic preservation and conservation organizations usually meet the test of "publicly supported" charity requirements of the IRS code. Since the IRS allows for the charitable deduction of the value of easements, a need arises for the proper valuation of such donations. Donors also need to be aware of the substantial tax penalties for mis-valuing or overvaluing easement donations. Substantial state and local tax abatement programs may also be available for qualified investors. Consult an appropriate tax professional in your area to see if your easement qualifies.