WASHINGTON, D.C. – U.S. Reps. Mike Thompson (D-CA) and Jim Gerlach (R-PA) on Tuesday announced that they will introduce the bipartisan Conservation Easement Incentive Act of 2013.
The legislation provides a permanent tax incentive to family farmers, ranchers, and other landowners who chose not develop their land and instead preserve their property for conservation.
By providing tax benefits to landowners who choose conservation, the bill helps preserve our nation’s farm lands and open spaces for future generations.
The bill has received broad bipartisan support in the House of Representatives, with more than 125 original co-sponsors.
“Conservation easements work. They’ve already encouraged landowners to conserve millions of acres of farm lands and scenic open spaces, but there’s more we can do” said Thompson. “By making this important conservation tool permanent, our bill will give landowners the certainty they need to preserve and protect even more land and natural resources for future generations.”
“Whether you are a farmer looking to preserve land that's been in your family for generations or a local land trust forging community partnerships to protect natural resources, this legislation gives you greater freedom to make critical choices about future land use,” Gerlach said.
“Our effort to make the conservation easement tax incentive permanent has generated bipartisan support because it makes sense,” Gerlach added. “I look forward to continue working with Congressman Thompson and my colleagues in the House to provide certainty and ensure that conservation easements remain an option for all property owners in the future.”
Under Thompson and Gerlach’s bill, landowners who donate their property’s development rights would maintain ownership and management of the land, but forgo their rights to develop the land in the future.
The Conservation Easement Incentive Act would make permanent an enhanced tax incentive for donating development rights that will otherwise expire at the end of 2013.
The incentive’s current uncertainty discourages conservation because it takes an average of three years to set up a conservation easement.
Landowners who want to donate their development rights for conservation may not know if incentive’s tax benefits will be available to them by the time their conservation easement is established.
Eliminating this ever-changing deadline will give more farmers, ranchers, and forest owners the assurance they need to choose land conservation over development.
In addition, the Conservation Easement Incentive Act would also help moderate-income landowners choose conservation by:
Raising the maximum deduction a donor can take for donating a conservation easement from 30 percent of their adjusted gross income (AGI) in any year to 50 percent;
Allowing qualified farmers and ranchers to deduct up to 100 percent of their AGI; and
Increasing the number of years over which a donor can take this deduction from five to 15 years.
The Conservation Easement Incentive Act has been endorsed by the Land Trust Alliance, Ducks Unlimited, National Wildlife Federation, National Cattleman’s Beef Association, American Forest Foundation, Congressional Sportsmen’s Foundation, and more than fifty other groups.
The bill will be referred to the House Committee on Ways and Means for further consideration, on which Congressmen Thompson and Gerlach both serve.
Thompson represents California’s Fifth Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma counties.