Changes to Tax Law Increase Benefits for Donating Easements
Congress passed a new tax law at the end of 2006 that helps all of us interested in protecting recreation trails, clean water, natural areas and family farms. The law enhances the federal tax benefits for landowners who donate voluntary conservation agreements. These agreements can provide a win-win solution for protecting resources important to our community while keeping land in productive private ownership.
What Congress did recently makes the tax law work much better for many modest income landowners who, under the old rules, only got credit for a small portion of the value of their donation. Now, a conservation donor can deduct up to 50% of his or her adjusted gross income in any year (up from 30%), and, if most of that income is from farming, ranching or forestry, he or she can deduct all of that income. Even more important is that if the value of the donation is larger than this, the landowner can continue to use the deduction for up to 15 years (up from five) after the initial year.
If you are interested in finding out more about this new tax incentive, go to