Legislative Victory For Land Conservation
WASHINGTON D.C. - New land conservation tax benefits for
family farmers and ranchers are included in recent pension reform
legislation.
The new law will combine an adjusted tax incentive for land conservation
with common sense reforms to ensure the public benefit of conservation
donations.
“This law will help landowners and land trusts protect important lands
across America,” said Land Trust Alliance President Rand Wentworth.
The new law extends the carry-forward period for tax deductions for
voluntary conservation agreements from 5 to 15 years and raises the cap on
those deductions from 30 percent of a donor’s adjusted gross income to 50
percent and to 100 percent for qualifying farmers and ranchers. This allows
ranchers, farmers and other modest-income landowners to get a much larger
benefit for donating very valuable development rights to their land.
“I know many ranchers who want to protect the land that they have lived
and worked on for generations, but need some help to make it happen,” said
John Lunt, a family rancher and conservationist from Wyoming. “Better
conservation tax incentives will help my friends and neighbors preserve
their land without putting their family’s economic future at risk.”
Voluntary conservation agreements, also known as conservation easements, are
an important tool for land conservation. When landowners donate voluntary
conservation agreements, they protect resources important to the public by
giving up future development rights, while retaining ownership and
management of the land.
The new law also protects the public interest by including a significant
tightening of the rules for appraisals of all donated property, including
stiff penalties for inflated appraisals.
The Land Trust Alliance recently launched a training and accreditation
program that will give a seal-of-approval to local land trusts who work
directly with private landowners to protect important lands in their
communities.
In addition, the Internal Revenue Service has stepped up its scrutiny of
land conservation donations, creating a task force to focus on strategic
ways for preventing abuses while supporting legitimate conservation
practices.
“Congress, the IRS and the private-sector have all taken decisive
action,” added Wentworth. “This three-pronged approach will solidify and
build public confidence in the private land conservation system.”
The president was expected to sign the bill into law shortly.
