New Tools for Land Trusts
Increased Federal Tax Benefits for Conservation Easements
(known as Conservation Restrictions in Massachusetts)
After considering a proposal to eliminate
conservation tax incentives altogether,
this past August the U.S. Congress passed
legislation that expands the federal tax benefit
for protecting important conservation values. For
qualified conservation contributions, under the
new law, the value of a CR donation can be de-ducted
up to 50% of an individualís Adjusted
Gross Income for the year of the gift, with a
15-year carry forward of any unused deduc-tion
amount. The 2006 Tax Act also provides
additional incentives for a qualified farmer
or rancher (including those of moderate
income levels) to donate conservation ease-
ments. Currently these tax advantages only
apply to conservation donations made in
2006 and 2007, but it is hoped these benefits
will be extended for donations made beyond
January 1, 2008. It should be noted that with
this added tax incentive there is also increased
scrutiny and additional regulations regard-ing
conservation donations values. Contact
CRAC (Conservation Restriction Advisory
Committee) or CCF for more information.
Enforcement of
Conservation Restrictions
In July 2006 the Massachusetts Legislature
passed a law which insures that in any
future CR enforcement action, towns and
conservation non-profits will not have to
foot the bill for the attorney hired to bring
the action (so long as the attorney wins).
Greg Peterson of CCF spearheaded this
effort and brought together representatives
of The Trustees of Reservations, Sudbury
Valley Trustees, Mass Audubon, the
Massachusetts Association of Conservation
Commissioners, the Massachusetts Land
Trust Coalition, the Real Estate Bar
Association and the Smart Growth Alliance
in a multi-year effort to work with the
legislature to craft and enact this important
legislation. This law helps resolve a major,
long-standing concern regarding the long-term
effectiveness of CRs, which require the
possibility of enforcement in order to be a
viable tool for land protection.
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