Generous landowners who donate voluntary conservation easements to the Whitewater Valley Land Trust are inspired by many things: they love their Whitewater Valley's mostly unspoiled, rural nature, they feel connected to their land, and they wish to leave a legacy for future generations.
These agreements, often referred to as conservation easements, are donations of a landowner's development rights to land, to protect specific natural, scenic or historic resources. The landowner continues to own and manage their land, and continues to pay local taxes. The public gets protection of resources that are an important heritage for our community. Whether a working family farm, forest land, shoreline or other natural resources, local land owners can ensure that it remains as it is, for their children and for future generations.
However, for most all of our donors, giving a conservation easement is a major financial decision, and federal income tax deduction that comes with a donation helps make easements possible for willing landowners in our community. Congress has just passed a law President Bush signed into effect August 17, 2006 that enhances the tax benefits for many landowners for conserving private land. The legislation improves the tax incentive for conservation easements by allowing donors of these agreements to:
EXAMPLE: Under the previous rules , a landowner earning $50,000 a year who donated a $1,000,000 conservation easement could take a $15,000 deduction for the year of the deduction and for an additional 5 years.a total of $90,000 in tax deductions.
EXAMPLE: The new rules allow that landowner to deduct $25,000 for the year of the donation and then for an additional 15 years. That's $400,000 in deductions. If the landowner qualifies as a farmer or rancher, they can "zero out" their taxes. In that case, they could have a maximum of $800,000 in deductions for their $1,000,000 gift.
Regrettably, these enhanced benefits are limited to gifts of conservation easements made during 2006 and 2007 only, which will allow Congress to evaluate subsequently this measure's success and any unforeseen abuses. There is absolutely no certainty these new benefits will be restored in later years after their expiration December 31, 2007 at midnight. Congress also passed tighter appraisal standards for such gifts. stronger penalties for appraisers who violate the standards and strong reforms to the private land conservation system, ensuring that local land trusts across the country meet the highest ethical and fiscal standards.
The Land Trust Alliance (LTA) led the effort to get Congress to approve this new law, in concert with most all other national conservation organizations, including The Nature Conservancy, The Trust for Public Land, the American Farmland Trust and hundreds of regional and local groups. LTA is the national organization for our country's over 1500 land trusts which sets national standards for conservation organizations like the Whitewater Valley Land Trust, provides training and networking opportunities, and represents the land trust community in Washington, D.C. Whitewater Valley Land Trust has been a supporting member of LTA from its founding.
The new law was supported by U.S. Senators Dick Lugar and Evan Bayh and the Whitewater Valley's U.S. Congressman Mike Pence. Our thanks to them for their help in winning this new help for conservation of Indiana's and our nation's wonderful natural areas!
Each day we are touched by the generous and inspired landowners who work with us. The new law will make it easier for others in our community to build on their love of the land and permanently protect more of our lovely Whitewater Valley.
To learn more about the new tax law developments, call the Whitewater Valley Land Trust at 765-962-2427 or visit: www.whitewatervalleylandtrust.org or www.lta.org.
