By donating a historic facade easement in perpetuity to a qualified 501(c)(3) organization, a historic building owner may qualify for a charitable contribution that is deductible from federal income, gift and estate taxes.

A historic facade easement, also known as a historic preservation easement, enables a historic building owner to establish certain preservation restrictions while retaining possession and use of the building. Specifically, a historic facade easement is a legal agreement that permanently prevents demolition, neglect and insensitive alterations to the exterior of the historic building.

In return for donating the facade easement, the historic building owner may benefit from a charitable contribution deduction that can be applied to federal income, gift and estate taxes. The value of the facade easement is measured by the difference between the appraised fair market value of the property before and after the easement is conveyed.

In some instances, a preservation easement can also be given on historically significant interior spaces and lost development rights.