Tax law changes made in 2006 provide major tax benefits for landowners who enter into preservation agreements with local land trusts. These tax benefits will expire at the end of 2007 unless Congress extends them.

Pajaro Valley farmer and Land Trust Board member Jim Rider says these benefits will “make a huge difference for the average farmer” thinking about donating a conservation easement.  “We have a one year window to tap into an IRS deduction that could be spread over the next 15 years,” he says.  “The IRS basically becomes a partner in saving family farms.”

The new law increases the benefits of conservation easement donations in several ways:

• It raises the deduction a landowner can take from 30% of their adjusted gross income in any year to 50%;
• It allows qualifying farmers, ranchers, and forest landowners to deduct up to 100% of their taxable income; and
• It extends the carry-forward period for a donor to take tax deductions from 5 to 15 years.

You can obtain general information on the tax laws from the Land Trust.  For more information call our office at (831) 429-6116 or .

You can also download this informative booklet on the tax benefits of donating conservation easements from the Land Trust Alliance, a membership organization made up of over 1600 local land trusts, including the Land Trust of Santa Cruz County.

Booklet: LTA_Tax_Brochure.pdf (236KB)

More information on tax incentives for donating conservation easements:
http://www.lta.org/publicpolicy/tax_incentives_updates.htm

 

 

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