The most powerful state incentives for conservation are the transferable tax credits available in Colorado, Georgia, New Mexico, South Carolina and Virginia. Such credits can be sold to an individual or corporation with high tax liability, generating immediate income for the donor.  Arkansas, California, Connecticut, Delaware, Iowa, Maryland, Massachusetts, Mississippi, New York, and North Carolina offer some form of non-transferable income tax credit.  All but AR, CO, MD, MS and NY apply to some fee-simple land donations as well as conservation easements.

Each state's program is unique, and qualifying for a federal tax benefit does not automatically qualify a donor for a state benefit. Basic information on the existing state tax credit programs can be found below. You may also find this 2004 chart comparing ten state tax credits a useful resource, although some programs have changed.

The list of states with tax incentives is expanding - the Arkansas, Florida, Iowa and Massachusetts incentives described below were added over the past few years. We recently worked with the National Assembly of Sportsmen's Caucuses to develop and promote an issue brief that seeks to inspire new state tax credits. The latest state policy updates, including tax incentives are covered on our state funding page.

Local, State and Federal Incentives for Conservation Easements

Former South Carolina Director of Revenue, Burnet Maybank, has published an excellent resource on tax incentives for conservation. It focuses on South Carolina law, but will be useful to anyone interested in conservation tax incentives.(posted 7/21/2006) View the PDF (2.59 MB)

If you have information on a pending credit, or would like to update the information below, please e-mail policy@lta.org.

Arkansas | California | Colorado | Connecticut | Delaware | Florida | Georgia | Iowa | Maryland | Massachusetts | Mississippi | New Mexico | New York | North Carolina | South Carolina | Virginia

Arkansas

In early 2009, the Arkansas legislature expanded the Wetland and Riparian Zones Tax Credit Program to allow credits for the donation of conservation easements in wetland and riparian zones.  Easement donors in these areas may qualify for an income tax credit for 50% of the easement's appraised value, up to $50,000.  While these credits are not transferable, remaining amounts may be carried forward for up to 9 years. Unfortunately the entire tax credit program is capped at $500,000, but supporters are hopeful that getting their foot in the door will pave the way for future expansion.

Learn More:

• Read the Full text of Act 351 of 2009.
• See the Wetland and Riparian Zones Tax Credit Program website.

California

The Natural Heritage Preservation Tax Credit Act offers incentives to preserve wildlife and plant habitat, agricultural lands, open spaces, and water rights on private lands. Landowners, including pass-through entities who donate land, an easement, or water rights are eligible for the credit. Eligible donations must meet the goals of a conservation plan, protect species or habitat, conserve threatened agricultural land, or increase public access to open space or archaeological resources. The tax credits are managed by the state resource agencies and essentially "granted" to landowners. Donors are allowed an income tax credit of 55% of the fair market value of the donated property against their income, with an eight-year carry-forward period. The tax credit program was suspended in 2002, but reinstated in 2005. Under the reinstated program, the state resource agencies and departments have to provide funds to the state's general fund to replace any tax credit claimed by a landowner. Please see the links below for details on the current status. The California conservation easement tax credit is non-transferable and applies in addition to federal tax benefits.

Learn More:

• See the California Council of Land Trusts website for more details.
• See the text of the California law.

Colorado

A conservation tax credit is available to Colorado residents, corporations, estates, and trusts who donate a conservation easement. Since 2007, the credit has been valued at 50% of the fair market value of the easement, up to a maximum credit of $375,000. A taxpayer can also sell all or part of a credit to a "transferee.” In recent years, Colorado land trusts have worked with the state legislature to craft additional reforms that ensure the integrity of the program and address budgetary concerns without permanently restricting its size.

Learn More:

• See details on Colorado’s conservation easement credit statute.
• Additional details from Colorado Cattlemen’s Agricultural Land Trust.
• Explore the Tax Credit Connection’s FAQ’s on the Credit.
• Learn more about transferring state tax credits in Colorado from the Conservation Resource Center

Connecticut

Connecticut provides a state corporate income tax credit for donations of conservation land or easements equal to 50% of the donation's fair market value. A 10-year carry forward period is available to donors whom do not use up the entire credit in the year of its origination. Donated land or easements must a) conserve natural or scenic resources, b) protect natural streams or water supplies, c) conserve of soils, wetlands, beaches, or tidal marshes, d) enhance neighborhood parks, forests, wildlife preserves, nature reservations, or other open space, e) enhance public, recreation opportunities, or f) preserve historic sites. The Connecticut conservation easement tax credit is non-transferable and applies in addition to federal tax benefit.

Learn More:

• See form 1120DL to claim the Connecticut credit.

Delaware

Delaware provides tax incentives to individuals or corporations that donate land or conservation easements. The credit is equal to 40% of the fair market value of the donation with a maximum credit of $50,000 for individuals per year. A 5-year carry forward period is available to individuals whom do not use up the entire credit in the year of its origination. Delaware conservation donations aim to conserve open space, natural habitat, recreational properties, resource conservation, and historic properties. The Delaware conservation easement tax credit is non-transferable and applies in addition to federal tax benefits.

Learn More:

• See the text of the Delaware law.

Florida

Florida has no state income tax, so in November 2008, Florida voters took the innovative approach of exempting land under easement from all state property tax, passing Amendment 4 by an overwhelming margin.  The law has two parts -- the first provides for a tax exemption for properties with a perpetual conservation easement.  The second provides for a "conservation assessment" on land that is in conservation use. The legislature recently enacted implementing legislation.

The permanent conservation easement portion includes requirements that mirror what land trusts already do in compliance with IRS rules and land trust standards and practices.  The bill does require that properties be at least 40 acres, unless they have special environmental features or are located next to protected areas, and excludes one acre around homes and buildings.  The second section allows for voluntary ten year covenants to restrict development rights.  There is a re-capture mechanism for back taxes when the land is taken out of conservation, but the rules for this are not spelled out, and will be developed by the Department of Revenue.

Learn More:

• Information on the property tax exemption from the Acquisition and Restoration Council
• Department of Revenue Application Form

Georgia

Georgia provides a state tax credit to individuals and corporations donating land or easements for conservation. The tax credit allows taxpayers to claim a credit against their state income tax liability of 25 percent of the fair market value of the donated property interest, up to a maximum credit of $250,000 for individuals and $500,000 for corporations. The allowed tax credit may not exceed the amount of tax owed for the taxable year, but any unused portion of the tax credit may be carried forward for the next five years. In Spring 2011 the Georgia tax credit was amended to make it transferable.

Learn More:

• See the text of the Georgia law.
• See the amendment that made it transferable.
• Additional details on the credit.

Iowa

Thanks to new legislation passed in 2008, Iowa taxpayers can now claim a substantial Iowa tax credit for donations of land or conservation easements.  Donors may receive 50% of the fair market value of the donated property interest up to a maximum tax credit of $100,000. These credits are not transferable, but any remaining value may be carried forward over a total of 20 years!  Iowa Natural Heritage Foundation (INHF) was part of a team of conservation interests that pitched their state tax credit to legislators and encouraged its adoption. “We really appreciate the work of so many lawmakers who understood that conservation budgets could not keep pace with land inflation, so they supported this innovative tax policy to encourage more voluntary land protection,” said INHF Public Policy Director Duane Sand.

Learn More:

• See Iowa Natural Heritage Foundation's guide for landowners which includes a wealth of links including legislative text.

Maryland

Maryland income tax payers who donate a conservation easement (not land in fee) may be eligible for a conservation tax credit. Easement donors qualifying for the State Income Tax Credit can deduct up to $5,000 per year with a 15 year carry forward period. Easements must be held or co-held by the Maryland Environmental Trust or the Maryland Agricultural Land Preservation Foundation, and approved by the Board of Public Works.

In addition, easement donors may also qualify for the Conservation Property Tax Credit if their easement protects unimproved, non-commercial land. This credit is worth 100% of the property tax paid on the eased land. The Maryland conservation easement tax credit is non-transferable and applies in addition to federal tax benefits.

Learn More:

• Learn more about the State Income Tax Credit from the Maryland Environmental Trust.
• See the official application form for the Conservation Property Tax Credit.
• For more information view the Eastern Shore Land Conservancy tax benefits information.

Massachusetts

In January 2009, Massachusetts enacted a new state tax credit for donors of land or easements. Donors may receive 50% of the fair market value of the donated property interest up to a maximum tax credit of $50,000. These credits are not transferable, but any remaining value may be carried forward for up to 10 years. Unfortunately, the entire program is currently capped at $2 million per year. The new credit enters into effect January 1, 2011.

Learn More:

• See the final bill text.
• See the state's tax credit webpage
• See a fact sheet on the tax credit

Mississippi

Mississippi appears to have two, small, narrowly focused tax credits for conservation:

H.B. 701 of 2003 offers a non-transferable credit toward 50% of allowable transaction costs associated with donating an easement on "Lands to protect stream bank habitats and  stability and to protect high biodiversity sites with exemplary natural communities or species of special concern or endangered species." The credit is capped at $10,000 and may be carried forward for 10 years.

A second credit was enacted in April 2010 with the passage of H.B. 1716. It appears to provide a credit of $5.50 per acre, per year, for certain lands made available for habitat or recreational purposes.  Information about the new credit is still limited.

Learn More:

• See the text of the 2003 tax credit for transaction costs

New Mexico

The Land Conservation Incentives Act of New Mexico offers a tax credit of up to $250,000 per year to anyone donating a qualified fee interest or conservation easement to any 501(c)3 organization or government entity. The credit is for 50% of the fair market value of the appraised value of the land or easement and may be carried forward for twenty successive years. In addition, the credit is transferable, meaning that a qualifying applicant for the credit can sell it on the open market at a discounted rate.  Qualifying land or easements must be donated for preservation of relatively natural habitat, open space, agricultural lands, outdoor recreation or education for the benefit of the general public, and/or historically important structures or land areas.

Learn More

• Visit The New Mexico Land Conservancy's website for additional details on the credit.
• Visit the Tax Credit Connection for information about the transferability of credits.

New York

Beginning in 2007, this innovative credit will give New York State landowners whose land is restricted by a conservation easement income tax credit. The landowner's state income tax will be reduced by 25% of the property tax paid on the eased property, up to $5,000. It is available to all owners of easement-restricted land, regardless of when the easement was created, provided that the easement was wholly or partially donated to a land trust or a governmental agency. The New York conservation easement tax credit is non-transferable, but is refundable and applies in addition to federal tax benefits.

Learn More:

• See more details on the New York State tax credit.

North Carolina

The North Carolina Conservation Tax Credit Program provides an income tax credit to some land easement donors. Land or easement donations must provide public access to land or water, fish and wildlife conservation, or fulfill other land conservation purposes (note: this is different from the federal tax code specification). The credit is worth 25% of the fair market value of the donation with a total credit of $250,000 for individuals and $500,000 for corporations. Any unused portion of the credit may be carried forward for five succeeding years. Credit taken in any year may not exceed the amount of income tax imposed by the state, reduced by the sum of all other credits. The North Carolina conservation easement tax credit is non-transferable and applies in addition to federal tax benefits.

Learn More:

• See the North Carolina Department of Environmental and Natural Resources for more details on the credit.
• See the text of the North Carolina law for corporations.
• See the text of the North Carolina law for individuals.
• See the Carolina Mountain Land Conservancy for FAQs on North Carolina’s conservation easements

South Carolina

The amended section of the 1976 code requires that a landowner has qualified for and claimed on their federal income tax return a charitable deduction for a gift of land for conservation, or for a qualified conservation contribution, to be eligible for the state income tax credit. South Carolina’s tax incentive comes in the form of a tax credit equal to 25% of the fair market value of the conservation gift. The tax credit is limited to a maximum of $52,500 per year, and to $250 per acre. The South Carolina tax incentive allows the landowner to carry the unused portion of the credit forward indefinitely until the full credit is claimed. The South Carolina conservation easement tax credit applies in addition to federal tax benefits.

Learn More:

• Detailed information on Local, State and Federal Tax Incentives in South Carolina is available from the Department of Revenue (PDF).
• Explore resources from the Open Space Protection Collaborative.
• Learn about buying and selling credits from the South Carolina Conservation Credit Exchange.

Virginia

Under the Virginia Land Conservation Act of 1999, every landowner who donates land or an easement for conservation is entitled to a credit against state income tax. The credit is worth 40% of the easement’s fair market value, up to $100,000 per year. Virginia’s income tax credit is available to tax-payers who donated a conservation easement after January 1, 2000. This tax credit applies to any person, corporation, partnership, organization, trust or estate subject to state or local taxation. If the credit is not used up in the year of the easement donation, it can be carried forward for an additional five years. Furthermore, if the easement was donated after 2001, the credit may be sold or transferred to other Virginia taxpayers. Individuals and corporations in the state of Virginia may buy or sell conservation tax credits, as long as a notification of the transfer of the credit is sent to the tax commissioner. For 2009 and 2010, the Legislature reduced the cap from $100k to $50k, but since the credits are transferable a donor should still be able to claim full credit--they may just have to transfer credits to more separate taxpayers.

Learn More:

• Read the Virginia Department of Taxation’s synopsis of the state tax credit program.
• See information from the Virginia Outdoors Foundation.
• See the text of the Virginia law.

If you have information on a pending credit, or would like to update the information above, please e-mail policy@lta.org.

Congress recently renewed the enhanced tax deduction for conservation easement donations through December 31, 2013!  That gives us just 12 months to educate potential easement donors about this important conservation tool and persuade Congress to make it permanent!

The Alliance has created this Grassroots Outreach Toolkit to assist land trusts with educating potential easement donors, elected officials and the media about this powerful incentive.  By acting fast, farmers, ranchers and other landowners an receive full credit for conserving their land and will demonstrate the value of this incentive to policy makers.  The toolkit provides the information needed to reach out to key audiences in a timely, cost-effective way.

Media Outreach | Inform Landowners | Host an Event | Thank Congress

NEW: Alert your 2012 easement donors that the law has changed!

Publicize the Incentive via the Media and Your Newsletter

• Talking Points on the enhanced easement incentive
• Sample press release announcing easement incentive renewal
• Sample newsletter article
• Sample letter to the editor
• Sample op-ed for your local newspaper

Share the News with Potential Easement Donors

• Our "Using the Conservation Tax Incentive" brochure has been updated for 2013. Please share this brochure with your donors. Additionally, you'll find much of the brochure's content has been updated on our Frequently Asked Questions page.
• A sample two-page fact sheet that you can customize for potential easement donors
• A Wall Street Journal story you can share about the incentive: Tax Breaks for Land Preservation. But Hurry.
  

Host an Event to Inform Potential Easement Donors & Elected Officials

• Tips for hosting a local public education event
• A sample event flyer
• A sample event media advisory
• A sample invitation letter for elected officials
• Prefer to simply invite your Rep. to visit a conserved property? View our guide to hosting that kind of visit.

Thank Your Members of Congress for Renewing the Incentive

• A sample thank you from your organization to Members of Congress
• A sample thank you letter for your easement donors to send to their Representatives
• Sample email for forwarding press clips to Congress
• A dozen more ideas for saying thank you

Please feel free to adjust any of these pieces to your particular communications needs.  Should you require further assistance or to suggest we add another resource, please don’t hesitate to e-mail Policy@lta.org.  For complete coverage and technical details regarding the enhanced incentive and it's renewal, visit www.lta.org/easementincentive.

Thank you for helping to spread the word on this great opportunity to support conservation!

If you think this new filing requirement may apply to your organization, go to http://www.irs.gov/charities/index.html for complete details.

Yesterday, Congress overrode a Presidential veto to pass the Food, Conservation and Energy Act of 2008. Although there was a clerical error in the process, it largely concerns a 34-page segment of the bill that was not in the copy of the bill the President vetoed (and is unrelated to the conservation provisions we have focused on).*

In addition to renewing the easement incentive, this bill:

• Provides a total of $733 million over 5 years for the Farmland Protection Program. It also clarifies the eligibility of land trusts to participate directly and specifies the following funding levels: $97M in FY08, $121M in FY09, $150M in FY10, $175M in FY11 and $200M in FY12.
• Re-establishes the Grassland Reserve Program with a goal of 1.22 million acres, funded with an estimated $300 million.

Click here for the exact language.

Thank you for adding your voice to the hundreds of land trusts and dozens of conservation, wildlife, sportsmen's and agricultural organizations that helped make this victory possible. We have powerful champions in Senators Max Baucus (D-MT) and Charles Grassley (R-IA) and Representatives Mike Thompson (D-CA) and Dave Camp (R-MI), but champions alone have failed to extend dozens of other popular tax provisions that expired this year. Your passion, and those many urgent phone calls made all the difference!

How You Can Help

Pat yourself on the back!  Soon, we'll be releasing a new "grassroots toolkit" full of templates to spread the news about this important conservation tool in your community, and to re-launch our campaign to make the incentive permanent. But today is all about saying thank you:

• Send thank-you emails to all the board members, partners and individual supporters who you've asked to contact Congress throughout this process.
• Fax thank you letters to each Senator and Representative who did anything to support the easement incentive, from cosponsoring S.469 or H.R. 1576 to voting for the final Farm Bill. Click here for a sample letter including links to those lists.
• Send a brief personal email or handwritten note to any Congressional staff members who were particularly helpful.
• Thank any reporters who covered your work with the easement incentive. Consider forwarding a copy of our press release with a personal note.

Of course, we're disappointed the conservation tax incentive wasn't made permanent, but this two-year extension has the potential to help us conserve an area twice the size of Rhode Island--forever. That's a legacy for future generations we can truly be proud of! 

Thank you!

Russ Shay                          
Director of Public Policy   
Land Trust Alliance                
rshay@lta.org           
202-638-4725

Sign up to be a Land Trust ADVOCATE
Land Trust Alliance ~ 1660 L St. NW, Suite 1100 ~ Washington DC, 20036 ~ 202-638-4725

Our Mission: To save the places people love by strengthening land conservation across America.

* Interested in the controversy over how the veto was done?  In short, House and Senate parliamentary experts believe that all parts of the Farm Bill except the 34-page international trade section that wasn't in the package that the President vetoed are now law.

Here are excerpts from the Washington Post account:

With an overwhelming 82 to 13 vote, the Senate yesterday completed the override of President Bush's veto of a comprehensive farm bill, shrugging off Republican concerns about an embarrassing legislative glitch to make the $307 billion bill the law of the land.

House GOP leaders continued to grumble that Democrats had violated the Constitution by pressing forward with the veto override after they discovered that a whole section of the bill on trade policy had been inadvertently dropped from the version vetoed Wednesday.

But Democratic leaders said they had court precedent and constitutional scholars on their side. "The veto override will have the force of law," said House Speaker Nancy Pelosi (D-Calif.).

Senate Republican leaders appeared unconcerned. Senate Minority Leader Mitch McConnell (Ky.) and Senate Republican Conference Chairman Lamar Alexander (Tenn.) were among the 35 Republicans who joined in the most significant legislative rebuff of Bush's presidency.

Lawmakers said they would take up the farm law's trade section as a separate bill and pass it after their Memorial Day break.

An enrolling clerk dropped the section, which includes international food aid programs, as the measure was being sent to the White House.

House Democratic leaders did push the entire farm bill back through the House again yesterday, in case they decide to start the process over again. But that appeared doubtful after the Senate's action.

Citing the Supreme Court's 1892 decision in Field v. Clark, House parliamentarian John Sullivan released a statement yesterday saying that "the law that would result from a bicameral override of the President's veto on H.R. 2419 would be the text that was presented to the President on parchment, notwithstanding its omission of the congressionally intended [trade] title."

Lastly, from Congress Daily:  "White House spokesman Scott Stanzel said the administration is treating the bill as law, although he continued to criticize its provisions."

For Immediate Release
March 6, 2008

Contact:
Jim Wyerman
Director, Communications & Development
Phone: 202-638-4725 x 310
E-mail: jwyerman@lta.org

Legislators call for more accountability in Colorado's conservation easement tax credit
Vow to "make a successful program stronger"

Denver - House Majority Leader Alice Madden (D-Boulder), Rep. Bernie Buescher, (D-Grand Junction) and Rep. Kathleen Curry (D-Gunnison) will join Senator Jim Isgar (D-Hesperus) tomorrow in introducing legislation to add an extra layer of accountability for state conservation easement tax credits.

Additional photos are available; e-mail pressroom@lta.org

This is a critically important juncture for our campaign . The Farm Bill is our best opportunity to move the tax incentive forward this year and the key decisions on that bill will be made in the next few weeks.  A personal call from your Representative to Speaker Pelosi or other key leaders could mean the difference between winning or losing the easement incentive.

Help Orchestrate Personal Calls to House Leadership
At this point, it will take a personal call from your Representative to key leaders of the House to make a difference on the Farm Bill. Please think about who on your board or in your community can best reach your Representative directly and ask them to make such a call. You may also have a chance to raise this with your Representative in person while they are back home for the Congressional Easter Recess, March 17-28.

Ask Democrats to call:

• Speaker Nancy Pelosi (D-CA)
• House Ways & Means Committee Chairman Charlie Rangel (D-NY)

Ask Republicans to call:

• House Ways & Means Committee Ranking Member Jim McCrery (R-LA)
• House Agriculture Committee Ranking Member Bob Goodlatte (R-VA)

Messages we need your Representative to convey:

• The tax incentive for conservation easements that Senator Baucus is trying to get into the Farm Bill is very important to landowners and conservationists in my district.
• It is extremely important to get this done in the Farm Bill.

If you already asked your Representative to do this, please follow-up—and be sure to tell them that even though House leaders are saying “no,” this issue isn't decided yet.

Click here for a fact sheet with more details.

Ask Your Representative to Support LWCF & Forest Legacy

Congressmen Tom Allen (D-ME) and Jim Gerlach (R-PA) are circulating a Congressional sign-on letter urging the Interior Appropriations Subcommittee to provide $278 million for the federal Land & Water Conservation Fund (LWCF), $120 million for the LWCF state grants program, and $120 million for the Forest Legacy Program in fiscal year 2009. These programs have historically been the most significant federal sources of funding to support land conservation and your Representative's signature will help us ensure these programs continue to succeed.

This is a relatively easy ask; here's what to do:

• Call your Representative (Switchboard: 202-224-3121) and ask to speak to the staffer who handles Interior Appropriations.
• Tell them how important LWCF and Forest Legacy are to your organization and to conservation in your state (mention specific projects if possible).
• Urge them to sign the Allen-Gerlach letter by calling Jim Bradley in Rep. Allen's office (5-6116) or Laura Carrel in Rep. Gerlach's office (5-4315) no later than Wednesday, March 12.
• Click here for a copy of the letter you can forward to them upon request.

Sign up to be a Land Trust ADVOCATE

Get Your Representative to Weigh in Personally with Leadership 

At this point, it will take a personal call from your Representative to key leaders of the House to make a difference on the Farm Bill. Just a few calls into the right people at this critical moment could literally change the history of conservation! Please think about who on your board or in your community can best reach your Representative directly and ask them to make such a call.

Ask Democrats to call:

• Speaker Nancy Pelosi (D-CA) or her Chief of Staff, John Lawrence
• House Ways & Means Committee Chairman Charlie Rangel (D-NY)

Ask Republicans to call:

• House Ways & Means Committee Ranking Member Jim McCrery (R-LA) 
• House Agriculture Committee Ranking Member Bob Goodlatte (R-VA)

Messages we need your Representative to convey:

• The Tax Incentive for Conservation Easements that Senator Baucus is trying to get into the Farm Bill is very important to landowners and conservationists in my district.
• It is extremely important to get this done in the Farm Bill

See background, frequently asked questions, and resources on the tax incentive.

Eight New Cosponsors for HR 1576; 160 Total

Over the past two weeks the following representatives have cosponsored HR 1576: Rep. Gabrielle Giffords (D-AZ), Rep. Anna Eshoo (D-CA), Rep. Lincoln Diaz-Balart (R-FL), Rep. Alcee Hastings (D-FL), Rep. Ileana Ros-Lehtinen (R-FL), Rep. Baron Hill (D-IN), Rep Adrian Smith (R-NE) and Rep. Peter Welch (D-VT). That means we now have 160 Members, more than a third of the House, on record supporting a permanent extension of the tax incentive for conservation easement donations!

Please check out our complete list of cosponsors! If your Representative isn't yet on the list, please call and urge them to cosponsor HR 1576. If your Representative is already a cosponsor, please urge them to weigh in with leadership (see above) and thank them publicly or privately using the templates on our tax incentive webpage.

Sign up to be a Land Trust ADVOCATE at: http://www.lta.org/publicpolicy/advocates.htm

FOR IMMEDIATE RELEASE

Contact: Russ Shay
Director of Public Policy
202-638-4725 x 305
rshay@lta.org

Legislative Victory for Land Conservation

Congress Passes Conservation Tax Incentive for Family Farms and Ranches

May 23, 2008

WASHINGTON, D.C.  — The hotly debated Farm Bill, which Congress enacted yesterday with an override of the President’s veto, renews a powerful tax incentive which has helped conserve a million or more acres of farms, ranches and natural areas across the US.  The incentive had expired January 1st, but is now retroactive to the beginning of the year and will last through 2009. 

A broad coalition representing sportsmen, outdoors enthusiasts, farmers, ranchers and national conservation groups, embraced the measure.  Rand Wentworth, president of the Land Trust Alliance, said “This renewed tax incentive for donations of conservation easements is one of the best things Congress could do this year to help landowners choose the conservation option over sprawl.  Especially for family farmers and ranchers of modest income, this is a great way to help them keep productive agricultural land from being lost.”

Wentworth gave special credit to Senators Max Baucus (D-MT) and Charles Grassley (R-IA) and Representatives Mike Thompson (D-CA) and Dave Camp (R-MI), saying “They are all true conservation leaders who have worked tirelessly to save a conservation measure that has already had benefits in hundreds of communities across the country.”  In conserving land, Wentworth added, “We also are protecting clean air, clean water, wildlife habitat, local food sources, historic landscapes and scenic beauty.”

Senator Baucus, who originated the incentive provision, said “Simply put—this is an incentive that works: for conservation, for farmers, for ranchers, and for all landowners who want a fair deal for their tremendous generosity in donating conservation easements.  Many ranchers and other landowners in Montana and across the US have told me they could not afford to conserve their land without this measure.”

The incentive, which applies to a landowner’s federal income tax, will:

• Raise the deduction a donor can take for donating a voluntary conservation agreement from 30% of their income in any year to 50%;
• Allow farmers and ranchers to deduct up to 100% of their income; and
• Increase the number of years over which a donor can take deductions from 6 to 16 years.

Landowner donations to conservation organizations known as land trusts have resulted in millions of acres of working lands and natural areas being conserved for the future.  According to the Alliance, many conservation groups reported an annual doubling of the number of conservation agreements completed in 2007, in response to the same incentive that had expired in January.   Land trusts in America have together saved more than 36 million acres from development, an area the size of New England.

The Alliance also credited the success of the measure to the entrepreneurial spirit of the private sector, which has taken the lead in conserving land in recent years.  Said Wentworth, “The fact is that conservation in this country now depends greatly on the generosity of individuals.  It is the individual rancher, farmer or forester, working the land in a way that is conservation-oriented, who will largely define our natural heritage in the future.’

Lead Organizations Supporting the Conservation Tax Incentive

The Land Trust Alliance is a national conservation group that works to save the places people love by strengthening conservation throughout America.  It works to  increases the pace and quality of conservation by advocating favorable tax policies, training land trusts in best practices and working to ensure the permanence of conservation in the face of continuing threats.  This year marks the Alliance’s 25th anniversary.

Contact: Russ Shay
Director of Public Policy
202-638-4725 x 305
rshay@lta.org

Legislative Victory for Land Conservation

Congress Passes Conservation Tax Incentive for Family Farms and Ranches

May 23, 2008

WASHINGTON, D.C.  — The hotly debated Farm Bill, which Congress enacted yesterday with an override of the President’s veto, renews a powerful tax incentive which has helped conserve a million or more acres of farms, ranches and natural areas across the US.  The incentive had expired January 1st, but is now retroactive to the beginning of the year and will last through 2009. 

A broad coalition representing sportsmen, outdoors enthusiasts, farmers, ranchers and national conservation groups, embraced the measure.  Rand Wentworth, president of the Land Trust Alliance, said “This renewed tax incentive for donations of conservation easements is one of the best things Congress could do this year to help landowners choose the conservation option over sprawl.  Especially for family farmers and ranchers of modest income, this is a great way to help them keep productive agricultural land from being lost.”

Wentworth gave special credit to Senators Max Baucus (D-MT) and Charles Grassley (R-IA) and Representatives Mike Thompson (D-CA) and Dave Camp (R-MI), saying “They are all true conservation leaders who have worked tirelessly to save a conservation measure that has already had benefits in hundreds of communities across the country.”  In conserving land, Wentworth added, “We also are protecting clean air, clean water, wildlife habitat, local food sources, historic landscapes and scenic beauty.”

Senator Baucus, who originated the incentive provision, said “Simply put—this is an incentive that works: for conservation, for farmers, for ranchers, and for all landowners who want a fair deal for their tremendous generosity in donating conservation easements.  Many ranchers and other landowners in Montana and across the US have told me they could not afford to conserve their land without this measure.”

The incentive, which applies to a landowner’s federal income tax, will:

• Raise the deduction a donor can take for donating a voluntary conservation agreement from 30% of their income in any year to 50%;
• Allow farmers and ranchers to deduct up to 100% of their income; and
• Increase the number of years over which a donor can take deductions from 6 to 16 years.

Landowner donations to conservation organizations known as land trusts have resulted in millions of acres of working lands and natural areas being conserved for the future.  According to the Alliance, many conservation groups reported an annual doubling of the number of conservation agreements completed in 2007, in response to the same incentive that had expired in January.   Land trusts in America have together saved more than 36 million acres from development, an area the size of New England.

The Alliance also credited the success of the measure to the entrepreneurial spirit of the private sector, which has taken the lead in conserving land in recent years.  Said Wentworth, “The fact is that conservation in this country now depends greatly on the generosity of individuals.  It is the individual rancher, farmer or forester, working the land in a way that is conservation-oriented, who will largely define our natural heritage in the future.’

Lead Organizations Supporting the Conservation Tax Incentive

The Land Trust Alliance is a national conservation group that works to save the places people love by strengthening conservation throughout America.  It works to  increases the pace and quality of conservation by advocating favorable tax policies, training land trusts in best practices and working to ensure the permanence of conservation in the face of continuing threats.  This year marks the Alliance’s 25th anniversary.

• View a fact sheet about this exciting legislation
  
  

Press Coverage of the Bill

• Seattle Post-Intelligencer
• Seattle Times
• The Bond Buyer
• Create your own: Newsletter Article Template
  
  

More information or to get involved, contact:

Dan Stonington
Cascade Land Conservancy
(206) 905-6903
dans@cascadeland.org
www.cascadeland.org

Tom Tuchmann
US Forest Capital, LLC
(503) 220-8103
tuchmann@usforestcapital.com
www.usforestcapital.com

Thank Your Representative If They Signed The Letter!

On February 14, 2008, Congressmen Chris Murphy (D-CT), Jim Gerlach (R-PA) and Joe Pitts (R-PA) and 62 other Members of the House sent a letter to the House Agriculture Committee urging a permanent extension of the tax incentive for conservation easements in the Farm Bill. Click here for a copy of the letter.

If your Member of Congress appears on the list below, please call and thank them for their support. If they’re listed in red, that means that even though they supported the tax incentive in this letter, they haven’t yet signed on as cosponsors of H.R. 1576, a bill to do exactly what they supported in the letter!   Please ask them to cosponsor HR 1576 too – building that list of cosponsors also helps us demonstrate support for the tax incentive!!

Support the Conservation Programs in the Farm Bill
Your continued support over the next two weeks will be critical to securing the tax incentive and in getting funding increases for critical conservation programs in the Farm Bill! The Senate’s Farm Bill includes a permanent extension of the conservation tax incentive.
Negotiations between the House, the Senate and the President are already underway, so every bit of extra support for making the conservation easement incentive permanent will help. Here are some easy ways you can help:

• TODAY:  Check our list to see if your Representative has cosponsored H.R. 1576, the stand-alone bill to make the easement incentive permanent!  If not, please ask them to do so by calling Elizabeth Thomas in the office of Congressman Mike Thompson (D-CA).  If they HAVE cosponsored, thank them – and ask them to please call Chairman Charles Rangel (D-NY) or Ranking Member Jim McCrery (R-LA) of the House Ways & Means Committee and ask them to help ensure that the provisions in the Senate’s Farm Bill that are identical to H.R. 1576 are included in the final Farm Bill.
  
  
• NEXT WEEK is a Congressional recess, so it’s a great opportunity to meet your Members of Congress close to home! Visit their websites at www.house.gov and www.senate.gov to find the phone number for the district office closest to you. You can request an in-district meeting or find out if they’ll be at public events where you can meet them. If you can’t get to meet with your Representative, be sure to ask their staff to support the same $5 billion in increased funding for conservation programs as was in the bill the House passed last summer. This includes the House’s higher funding for the Farm and Ranch Protection Program and the Grasslands Reserve Program, both of which give grants to land trusts and states to purchase conservation easements on working farm and ranch land.

Need help?  Want to do even more?  E-mail policy@lta.org.

See background, frequently asked questions, and resources on the tax incentive