Update from The Land Trust Alliance, 11/18/2005:
Senate Passes Tax Bill on Land Conservation

(For the text of the Washtenaw Land Trust's letter to Representatives, see below.)

Late last night, the US Senate passed a tax bill that included a significant expansion of the deductions available to landowners who donate a conservation easement to a land trust. Thanks to the great work of land trusts throughout the country, not only did we block the Joint Committee on Taxation proposal to eliminate tax deductions for conservation, but we have won support for a dramatic expansion of that incentive!

We are also pleased to report that this Senate bill includes some much-needed appraisal reforms but does not contain unreasonable restrictions on conservation easements . The Senate bill does not include any new limitations on the size or composition of conservation easements on land, or any new requirements for donees accepting those easements.

The bill provides for extending the carry-forward period for tax deductions from 5 to 15 years and raising the cap on conservation deductions from 30 percent of a donor's income to 50 percent - and to 100 percent for farmers and ranchers. The bill also includes a variety of changes in law affecting charities and charitable contributions, including a significant tightening of the rules on donations of easements for the protection of historic structures, and tightening of the rules on appraisers and appraisals of all donated property (including conservation lands and easements). View the details of the Senate bill (pdf, 2.2MB - large file).

This story is far from over. The House counterpart of this bill does not include the conservation incentive, and getting the House to accept the Senate provision will not be easy. A final decision could be made in the next month, and we will need your help to influence it.

I want to personally thank each and every one of you who helped get us to this point -- each person and organization that contacted their Senators about the importance of the work of land trusts and the implications of the changes suggested by the Joint Committee on Taxation for that work; everyone that helped us raise the financial resources for LTA's work here in Washington, DC; and every one who helped demonstrate our community's commitment to high standards and public benefit, by adopting Land Trust Standards and Practices and helping us to design a private-sector accreditation process for conservation organizations. The inclusion of an expanded tax incentive and the absence of draconian restrictions is a great victory for land conservation!

Sincerely,
Rand Wentworth, President, Land Trust Alliance

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The Washtenaw Land Trust's letter to Representatives:
Sent 11/23/2005 to Reps. Dingell, Schwarz, and Rogers

Dear (Representative),

      I'm pleased to pass along the news that the US Senate tax bill that passed last week includes an expansion of the incentives for private land conservation. I'd like to encourage you to support similar provisions in the House version of the bill.

      The bill provides for extending the carry-forward period for tax deductions from 5 to 15 years and raising the cap on conservation deductions from 30 percent of a donor's income to 50 percent - and to 100 percent for farmers and ranchers. This will further encourage private land protection, and make it financially possible for a wider cross section of Americans. The bill also includes a variety of changes in law affecting charities and charitable contributions, including a significant tightening of the rules on donations of easements for the protection of historic structures, and tightening of the rules on appraisers and appraisals of all donated property (including conservation lands and easements).

      The House counterpart of this bill, however, does not yet include the expanded conservation incentives.

      When you consider the tax bill that you will be voting on, I urge you to support land conservation provisions such as those approved by the Senate.

      Thank you for your consideration, and have a wonderful Thanksgiving!

Best regards,
Susan Lackey, Executive Director, Washtenaw Land Trust

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Washtenaw Land Trust
info@washtenawlandtrust.org
734-302-LAND(5263)