Photos by Bob Sharp
 


New Federal Law Gives Better Tax Break for Voluntary Conservation Agreements
Last year Congress passed a law to enhance the tax benefits of protecting your land by donating a voluntary conservation agreement. While this legislation currently expires at the end of 2007, earlier this year a new bill was introduced that would make these same incentives permanent.

 If you own land with important natural or historic resources, donating a voluntary conservation agreement can be one of the smartest ways to conserve the land you love and protect America’s natural heritage, while maintaining your private property rights and possibly realizing significant federal tax benefits.  
These new incentives make it easier for average Americans, including working family farmers and ranchers, to donate land.  The legislation allows:

  • A conservation agreement donor to deduct up to 50% of their adjusted gross income in any year;
  • Qualifying farmers and ranchers to deduct up to 100% of their adjusted gross income; and
  • Donors to carry over deductions for their contribution for as many as 15 years.

These changes allow many modest income landowners to deduct much more than they could under the old rules, bringing increased fairness to the tax code.

Donation of a conservation easement is a tax-deductible, charitable gift – provided that the easement is perpetual and is donated “exclusively for conservation purposes” to a qualified conservation organization or public agency.  Conservation purposes include protection of valuable ranchland, relatively natural wildlife habitats and natural areas, among others.

The Southeastern Arizona Land Trust is recognized by the Internal Revenue Service as an appropriate organization to receive and act as steward for conservation easements.  SEALT is also qualified  to assess the conservation features of a property, to document that the property meets IRS Code Criteria.

Potential easement donors should consult with their estate planner, CPA and financial advisor before exploring a conservation easement.

Call us at (520) 455-5592 or email us at sealt@qwestoffice.net to request a free copy of Conservation Tax Law Update, a publication developed by the Land Trust Alliance, a non-profit organization headquartered in Washington, D.C. that is the convener, strategist, and representative of land trusts across America.  There is extensive information on the new tax law on the Alliance’s website at www.lta.org.