Conservation Tax Incentives Fact Sheet

Adjusted Deduction for Conservation Easement Donations Will Help Farmers and Ranchers

Section 1206 of the House-passed pensions bill (HR 4) would help family farmers, ranchers, and other moderate-income landowners get a significant tax benefit for making the extraordinarily valuable donation of a conservation easement, restricting future development of their land to protect a resource important to the public.  Most such donations are made to local, community-based charities dedicated to keeping land in agriculture, conserving important wildlife habitats, and protecting important open space and historic resources.  This proposal would:

• Raise the maximum deduction a donor can take for donating a conservation easement from 30% of their adjusted gross income (AGI) in any year to 50%;
• Allow qualified farmers and ranchers to deduct up to 100% of their AGI; and
• Increase the number of years over which a donor can take deductions from 6 years to 16 years.

This provision would be effective for donations made through December 31, 2007.  After that, the law would revert back to previous provisions, unless Congress extended the provision prior to the deadline.

Conservation Incentive Combined with Solid Tax Reforms

Section 1219 of the bill sets higher standards for appraisers and appraisals of all donated property, and sets higher penalties for abusive appraisals.  Conservationists support this to ensure the integrity of the charitable donation process.  Also, Section 1213 tightens restrictions on donations of easements to protect historic buildings. 

Widespread Support

A variety of sportsmen’s and conservation organizations support the incentives proposal, including:

American Bird Conservancy

American Farmland Trust

American Fisheries Society

American Sportfishing Association

Archery Trade Association

ArrowSport

BASS/ESPN Outdoors

Bear Trust International

Berkley Conservation Institute

Bowhunting Preservation Alliance

Campfire Club of America

Civil War Preservation Trust

Dallas Safari Club

Ducks Unlimited

Houston Safari Club

International Association of Fish and

    Wildlife Agencies

Izaak Walton League of America

Land Trust Alliance

National Audubon Society

National Shooting Sports Foundation

North American Grouse Partnership

Pheasants Forever

Piedmont Environmental Council

Quail Unlimited

Quality Deer Management  

    Association

Rocky Mountain Elk Foundation

Safari Club International

Scenic America

Texas Wildlife Association

The Conservation Fund

The Nature Conservancy

The Wildlife Society

Theodore Roosevelt Conservation

    Partnership

Trout Unlimited

Trust for Public Land

Whitetails Unlimited

Wildlife Management Institute

Legislative Vehicles

In the 109^th Congress, this language originally passed as Section 207 of the Senate’s tax reconciliation bill in November of 2005 (in THOMAS, see S.2020.EAS and HR 4297.EAS).  In early 2006, the language was introduced as a free-standing bill in the House of Representatives (HR 5056).  Although the final tax reconciliation bill did not include this provision, it still may be included as part of another tax package this year (possibly in HR 4).