Enhanced Conservation Easement Tax Incentive:

Federal tax deduction regarding Conservation Easements

Due to the Congress’ debate over the payroll tax extension, the enhanced conservation easement incentive expired at the end of 2011. However, the easement incentive extension could be included with any number of tax bills early this year 2012 and retroactively applied.

Conservation easements donated in 2011 will continue to benefit from the enhanced incentive and conservation easements donated in 2012 will be treated just like other non-cash charitable donations, which are deductible up to 30% of a donor’s income for up to six years. What does expire is the enhanced incentive, which 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 to 16 years.

Heart of the Lakes has been thanking co-sponsors of H.R. 1964 or S. 339, which would make the enhanced incentive permanent, and urging people who have not yet signed on as sponsors to do so. You can join us by contacting them via the Capitol switchboard at 202-224-3121. For more on Heart of the Lakes Center for Land Conservation Policy see www.heartofthelakes.org.