IRS issues final State and Local Tax regulations
iYesterday, the IRS and U.S. Treasury Department issued final regulations that will drastically erode state tax incentives for landowners who donate land or conservation easements to land trusts.
The IRS and Treasury have fallen short in their duty. Congress and the states have repeatedly affirmed that philanthropic Americans who donate conservation easements and land should be eligible for certain tax deductions because of the benefits conserved lands provide to the public.
The new State and Local Tax rule change eliminates — or substantially shrinks — an important incentive for donors and will slow the rate of land conservation. Without the ability to utilize a state tax credit in combination with the federal tax deduction, financial pressures may force landowners to sell lands with important conservation values to raise funds. This means we, as a nation, will lose farm and ranch lands, wildlife refuges, forests and other remarkable places.
This new rule fails to respect the intent of Congress. As such, the Land Trust Alliance will seek a legislative remedy so that Americans are given the helping hand they need as they do the right thing: Protect our lands, our wildlife, our waters and our ways of life.
We will soon ask for your help in this new campaign. In the meantime, please know the Alliance stands with you.
Andrew Bowman is president & CEO of the Land Trust Alliance.