SECTION 4. SAFE HARBOR DEED

LANGUAGE

.01 Extinguishment clause . The safe harbor deed language for extinguishment clauses is:

Pursuant to Notice 2023-30, Donor and Donee agree that, if a subsequent unexpected change in the condi- tions surrounding the property that is the subject of a donation of the perpetual conservation restriction

renders impossible or impractical the continued use of the property for con- servation purposes, the conservation purpose can nonetheless be treated as protected in perpetuity if (1) the restrictions are extinguished by judi- cial proceeding and (2) all of Donee’s portion of the proceeds (as deter- mined below) from a subsequent sale or exchange of the property are used by the Donee in a manner consistent with the conservation purposes of the original contribution.

Determination of Proceeds. Donor and Donee agree that the donation of the perpetual conservation restriction gives rise to a property right, imme- diately vested in Donee, with a fair market value that is at least equal to the proportionate value that the per- petual conservation restriction, at the time of the gift, bears to the fair mar- ket value of the property as a whole at

that time. The proportionate value of Donee’s property rights remains con- stant such that if a subsequent sale, exchange, or involuntary conversion of the subject property occurs, Donee is entitled to a portion of the proceeds at least equal to that proportionate value of the perpetual conservation restriction, unless state law provides that the donor is entitled to the full proceeds from the conversion without regard to the terms of the prior per- petual conservation restriction.

.02 Boundary line adjustments clause . The safe harbor boundary line adjustment clause is:

Pursuant to Notice 2023-30, Donor and Donee agree that boundary line adjustments to the real property sub- ject to the restrictions may be made only pursuant to a judicial proceed- ing to resolve a bona fide dispute regarding a boundary line’s location.

.03 Similar terms with the same mean- ing . In substituting deed language, the donor may use the precise terms used in sections 4.01 and 4.02 of this notice, or the donor may use terms that have the same meaning as the terms in sections 4.01 and 4.02. For example, if the original deed uses the terms “Grantor” and “Grantee” instead of “Donor” and “Donee,” the donor can use either “Grantor” and “Grantee” or “Donor” and “Donee” because these terms have the same meaning. Also, for example, if the original deed uses the term “easement” or “servitude” instead of “restriction,” the donor may use any of those terms, provided the term refers to a qualified real property interest within the meaning of § 170(h)(2)(C) and § 1.170A-14(b)(2).