Enhanced Easement Tax Incentives

ENHANCED CONSERVATION EASEMENT TAX INCENTIVES (Extended Through 2011)

By allowing conservation easement donors to deduct up to 50 percent of their income (100 percent for farmers, ranchers and forest landowners) for up to 16 years, the enhanced easement incentive helps modest-income landowners realize a greater tax benefit for their generous donation and has boosted the pace of conservation by about 250,000 acres a year.  The enhanced incentive was created in the 2006 Pension Protection Act, extended through 2009 in the 2008 Farm Bill and then extended through 2011 by section 723 of H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

Click here to review the pertinent part of HR 4853.

Click here to review detailed information on the enhanced incentives, drafted by the Land Trust Alliance and republished here for convenience.

Click here to review Internal Revenue Bulletin 2007-50. This bulletin was an IRS response to questions posed by the Land Trust Alliance regarding interpretation of the enhanced incentives. It provides detailed information on numerous questions, such as what constitutes a “qualified farmer or rancher.”

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