August 18, 2006

New Tax Cut for Conservation on Private Land
President Signs Bill That Helps Farmers and Ranchers Protect Their Land

WASHINGTON, D.C.—New land conservation tax benefits for family farmers and ranchers are included in just-passed pension reform legislation (Section 1206 of HR 4) signed by the President August 17, 2006.  The new law will combine an adjusted federal tax incentive for land protection with common sense reforms to ensure the public benefit of conservation donations.

“The new law is an important step in helping landowners protect their land’s qualities,” says Julie Bear, Executive Director of the Eastern Sierra Land Trust. “Better conservation tax incentives will help landowners who want to pass their land or working family farms and ranches on to their children and grandchildren without putting their economic future at risk.”

The new law extends the carry-forward period for federal tax deductions for voluntary land protection agreements from 5 to 15 years and raises the cap on those deductions from 30 percent of a donor’s adjusted gross income to 50 percent—and to 100 percent for qualifying farmers and ranchers.  This allows ranchers, farmers and other landowners to get a much larger benefit for donating valuable development rights to their land.

Voluntary land protection agreements, also known as conservation easements, are an important tool for land conservation.  When landowners donate voluntary land protection agreements, they protect resources important to the public while retaining ownership and management of the land.  These agreements also keep land on the tax rolls, preserving revenue for local schools and local services and providing cost-effective, non-regulatory conservation.

The new law also protects the public interest by including a significant tightening of the rules for appraisals of all donated property, including stiff penalties for inflated appraisals.

“Congress, the IRS and the private sector have all taken action to build confidence in private land protection, further confirming that land trust tools can be beneficial to landowners in the Eastern Sierra.” emphasized Tony Taylor, Eastern Sierra Land Trust’s Board President.

The Eastern Sierra Land Trust is a non-profit, 501 (c)3 organization that works with private landowners and the public to protect farms and ranches, natural areas, rural culture and scenic vistas in Inyo, Mono, and Alpine counties.

For more information about the Eastern Sierra Land Trust please contact us at (760) 873-4554.