May 23, 2008
Congress Extends Tax Break for Land-Conservation Gifts
By Elizabeth Schwinn
Washington
Nonprofit organizations have won an extension of a generous tax incentive for donations of land or historically important property under a law approved by Congress Thursday.
A two-year extension of the so-called conservation easement deduction was included in a bill to protect farmers, which became law Thursday over President Bush’s veto.
The provision, created as a temporary, two-year incentive under the Pension Protection Act, expired at the end of last year. Conservation groups, including the Land Trust Alliance — a Washington group with 1,100 member land trusts — lobbied Congress to make the provision permanent, saying it does much to spur donations of property.
More than a million acres of land have been protected from development as a result of the expanded tax incentive, says Russ Shay, public policy director of the Land Trust Alliance.
Landowners now have until December 31, 2009, to take advantage of the tax break when they donate ranches, wetlands, forests, and other properties for conservation.
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Hooray for land conservation! To be clear, a conservation easement is when a landowner sells or donates the development rights of his or her land. It’s a voluntary restriction, and the value of the tax deduction depends on the amount of “development potential” that the landowner gives up, as determined by a qualified appraiser.
— Katie May 23, 02:22 PM #
Part of a bill “to protect farmers”??? Excuse me ?? This provision was tacked onto the biggest farm subsidy bill in history, passed at a time when feed grains and other agricultural products are at record highs, and farmers (including huge corporations) are making more money than they’ve ever made in their lives. There was also more pork in this bill than you’d find on the average hog farm. Bush was right to veto the measure, but shameless election-year pandering over-rode the veto, and the taxpayers will foot the bill!
— Jimbo May 23, 09:57 PM #