Federal Conservation Tax Benefit Extended through 2011

In December 2010, Congress renewed the enhanced tax incentive for conservation easement donations through December 31, 2011 and retroactive to January 1, 2010!   The enhanced tax deduction for conservation easement donations has helped America’s land trusts work with farmers, ranchers and other modest-income landowners to increase the pace of conservation by about 250,000 acres a year!  

The tax benefits were originally signed into law on August 3, 2006 when Congress approved a tremendous expansion of the federal tax incentive for conservation easement donations. This was a great victory for conservation!

The tax incentive has helped America’s land trusts increase the pace of land conservation by at least 535,000 acres compared to the previous two years! The law:

• Raises 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%;
• Allows qualified farmers and ranchers to deduct up to 100% of their AGI; and
• Increases the number of years over which a donor can take deductions from 6 years to 16 years.

These changes enable family farmers, ranchers, and other moderate-income landowners to get a significant tax benefit for donating a conservation easement on their land.  Under prior law, an agricultural landowner earning $50,000 a year who donated a conservation easement worth $1 million could take a total of no more than $90,000 in tax deductions!  Under the new law, that landowner can take as much as $800,000 in tax deductions – still less than the full value of their donation, but a significant increase.

Learn More at Land Trust Alliance website.