Other Federal Tax Incentives
Beyond the easement incentive, there are several other federal tax provisions that support land conservation in ways large and small.
Fee Simple Donations of Land
Donating land for conservation is one of the finest legacies a person can leave to future generations. Like most other non-cash charitable contributions, the market value of an outright donation or bargain sale of land to a land trust may be deducted up to 30% of the donor's adjusted gross income and carried over for five years. Since millions of donors contribute real estate to charity for a wide variety of reasons, it was not possible to extend the enhanced percentages of the easement incentive to all land contributions.
- More information on how to donate your land
- Tax regulations and guidance for all conservation contributions
Estate Tax Benefits
Estate taxes can lead to the break-up, sale and development of family-owned farm, ranch and forest lands, even when landowners would prefer to keep these lands intact. Thanks to the Land Trust Alliance's advocacy with Congress, a June 1998 tax bill expanded the estate tax benefits of donating a conservation easement.
Updates on Federal Tax Incentives for Conservation
8/28/09 Community Forestry Conservation Act Would Create an Innovative Conservation Tool
The Land Trust Alliance supports new legislation that would allow the creation of “Community Forestry Bonds.” Under this proposal, Congress would allow land trusts to use funds derived from municipal revenue bond sales to purchase working forests and keep them working. This new tool will provide a mechanism for acquisition of lands that are at a high risk of conversion and parcelization. The bonds would be paid off with proceeds from environmentally sensitive timber harvests. In July, Senators Patty Murray (D-WA), Mike Crapo (R-ID), and Maria Cantwell (D-WA) introduced S. 1501 and Representatives Mike Thompson (D-CA), Jim McDermott (D-WA), and Dave Reichert (R-WA) introduced H.R. 3302. Read More...
10/15/08 Take Advantage of Renewed Tax Provisions, Developers Selling Land
The recently-enacted financial bailout bill includes two tax provisions you should know about:
- An extension of the “IRA Charitable Rollover” provision, allowing donors over 70 ½ to make tax-free charitable contributions from their IRA accounts
- An extension of the Pension Protection Act provision that removes the limitation on charitable deductions allowed S-corporation shareholders to their stock basis.
Meanwhile, the Wall Street Journal recently reported that longstanding tax law, combined with a souring economy, is encouraging developers to sell losing real estate investments by the end of the year—a potential opportunity for land trusts to acquire land at a steep discount. Read More...
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