By Greg Sharkey, LLT Board Member
In May 2008, the U.S. Congress renewed a powerful tax incentive that makes it
more attractive for landowners to donate conservation easements to qualified
charitable conservation organizations like the Licking Land Trust. Specifically,
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.
Under law prior to 2006, 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 is able to
take as much as $800,000 in tax deductions – still less than the full value
of the donation, but a significant increase.
Not surprisingly, The Licking Land Trust and land trusts across the country
have experienced a significant increase in landowners wanting to give conservation
easements since the law was originally enacted in 2006. In fact, the legislation
has helped conserve over one million acres of farms, ranches and natural areas
across the U.S. The legislation has created a true win-win situation –
thousands of acres of beautiful lands preserved for the enjoyment of future
generations and a much better tax deal for the generous donors of these lands.
While Congress let the original 2006 law expire at the end of 2007, its action
in May 2008 makes the renewed law retroactive to the beginning of the year and
it will last through the end of 2009.
The Licking Land Trust is a key player in the national land trust community
that successfully persuaded Congress to pass both the original 2006 law and
the new 2008 law that renews these compelling tax incentives. For more information
on the provisions of the tax law, please contact the Licking Land Trust at lickinglandtrust@windstream.net
or call Greg Sharkey at (614) 787-4739. We welcome the opportunity to help you
explore the possibility of granting a conservation easement for the permanent
protection of your land.