Tax
Incentives for Conservation Easements Extended
In May,
2008 Congress enacted the Farm Bill that renews the increased
tax incentive for donations of conservation easements that
expired on January 1 of this year. By a vote of 81 to 15 in
the Senate and 318 to 106 in the House, a 2-year extension
of the enhanced incentive for conservation easements was approved
in the new Farm Bill. The extension is retroactive to the
beginning of this year.
Many organizations,
including the Mississippi Land Trust, worked hard for a permanent
extension of the tax incentive. Daniel S. Coggin, director
of the Mississippi Land Trust, states, “We are very
excited about the extension of the incentives for conservation
easements and we are very thankful for all those who worked
very hard to ensure the extension was in the new Farm Bill.”
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 land from being lost.”
The Mississippi
Land Trust, the Mississippi River Trust and Wildlife Mississippi
worked with Congress to ensure that the tax incentives were
renewed. Also of importance was the major new funding for
the Healthy Forests Reserve Program and the Grassland Reserve
Program. The new Farm Bill provides a total of $39 million
for the Healthy Forests Reserve Program and re-establishes
the Grassland Reserve Program with a goal of 1.22 million
acres, funded with an estimated $300 million.
The incentive,
which applies to a landowner’s federal income tax, will:
• Raise the deduction a donor can take for donating
a voluntary conservation easement from 30 percent of their
income in any year to 50 percent;
• Allow farmers and ranchers to deduct up to 100 percent
of their income; and
• Increase the number of years over which a donor can
take deductions from 6 to 16 years.
Download
Tax Brochure (1.20 MB)
More
News
>>
|
