Great Victory for Conservation
Congress Approves Expansion of Tax Incentives
for North Carolina Landowners
AUGUST 23, 2006
The U.S. Senate and House of Representatives have approved a tremendous expansion of the federal tax incentive for conservation agreement donations! The following changes were included in the Pensions Bill recently passed by Congress and signed by the President:
- Raises the deduction a landowner can take for donating a conservation easement from 30% of their income in any year to 50%;
- Allows qualifying farmers and ranchers to deduct up to 100% of their income; and
- Increases the number of years over which a donor can take those deductions from 5 to 15 years.
It is important to note that the new provisions only apply to conservation agreements donated in 2006 and 2007. The Land Trust Alliance (LTA) will be working hard in the next two years to make sure the change becomes permanent.
This is a remarkable accomplishment for conservation. A little more than a year ago LTA and land trusts were fighting recommendations being considered by the Joint Committee on Taxation that would have crippled private land conservation. LTA and local land trusts worked hard to educate Senators and Representatives about the good work land trusts do for local communities and the benefits of private land conservation. North Carolina land trusts helped generate well over 100 letters to North Carolina's senators.
The bill also includes sensible reforms that affect the appraisal process for all donated property and tightens the rules for preservation agreements on historic buildings. Anyone working with an appraiser should make sure they know the new rules.
For more information about the bill and the new tax incentives, go to www.lta.org. You can help land trusts work with more landowners to preserve clean drinking water, wildlife habitat, working farms and forests, and other natural lands by making a contribution to the Conservation Trust and/or your local land trust today. To learn more about land trusts and which ones are working in your community, go to www.ctnc.org.
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