New Tax Incentives Enhance Value of Conservation Donations for Private Landowners

"This is the biggest boon for conservation land giving in my 20 years of experience in this field."
~ Mark Robinson, Executive Director of The Compact of Cape Cod Conservation Trusts

Congress just passed new tax legislation that can help landowners who are interested in protecting natural systems, family lands, and traditions in their communities. It does so by providing enhanced tax benefits for landowners who donate conservation restrictions on their land. Conservation restrictions are an effective way for private landowners to protect critical natural resources in their community while keeping land in the family and traditions alive.

Previously, conservation restriction (CR) donors received tax deductions up to 30% of their Adjusted Gross Income (AGI) for a maximum of 6 years. Under the old rules, many lower income level donors were not able to fully realize their deduction within the 6 year period, forcing them to leave money on the table.

These new incentives make it easier for private landowners with an average income, including family farmers, to donate land and fully realize their benefits. The legislation allows:

• A conservation agreement donor to deduct up to 50% of their adjusted gross income in any year;

• Qualifying farmers and ranchers to deduct up to 100% of their adjusted gross income; and

• Donors to carry over deductions for their contribution for as many as 16 years.

Here is why landowners should take advantage of the new tax incentives today:

Property Value		Pre-2006 federal tax law
$1,000,000		Appraised value of land before CR
$ 200,000		Appraised value of land after CR
$ 800,000		Charitable deduction
$ 100,000		Adjusted gross income (AGI) of landowner
$ 30,000		Maximum use of charitable deduction each year (30% of AGI)
$ 180,000		Six-year total deduction ($30,000/yr. x 6 yrs.)
$ 45,000		Six-year total tax savings (assumes 25% tax bracket)

Property Value		NEW 2006 federal tax law
$1,000,000		Appraised value of land before CR
$ 200,000		Appraised value of land after CR
$ 800,000		Charitable deduction
$ 100,000		Adjusted gross income (AGI) of landowner
$ 50,000		Maximum use of charitable deduction each year (50% of AGI)
$ 180,000		16-year total deduction ($50,000/yr. x 16 yrs.)
$ 200,000		16-year total tax savings (assumes 25% tax bracket)

Many towns, like Barnstable, offer additional tax incentives at a local level for conserving private property. The town rewards land donors with property tax reductions if they consider the land to be of a high conservation value. New tax incentives, combined with property tax reductions, can make it significantly more feasible for people to hold on to their family land.

So why is it critical for landowners to take advantage of these new tax incentives today?

Because this legislation is only effective for donations made through December 31, 2007. After December 31st, the legislation will be subject to re-examination. This may be a once in a lifetime opportunity to maximize the monetary benefits of preserving your family lands- the time to act is now!

According to Mark Robinson, Executive Director of The Compact of Cape Cod Conservation Trusts, "This is the biggest boon for conservation land giving in my 20 years of experience in this field." Barnstable Land Trust and The Compact hope that new tax incentives may help to boost the number of conservation restrictions across the Cape over the next year. Conservation restrictions are an effective tool for the people of Cape Cod to take back the future of their communities by preserving their family lands. Please talk to your tax advisor and find out if a conservation restriction donation is right for you.

(Information provided by Land Trust Alliance, The Compact of Cape Cod Conservation Trusts, and the Barnstable Land Trust.)

Osprey Platform Repaired

On November 11, 2006 four BLT member volunteers replaced the osprey platform at Turtle Island. We have had a nesting pair of osprey here since the platform was first installed in 1993. Early this past summer the platform disintegrated. Still, this year's bewildered pair hung on to their home for the remainder of the season. Once they headed south for the winter, BLT volunteers, Jeff Eshbaugh, Conrad Geyser, Fritz Dietzgen, and Bill Keto took advantage of their absence to refurbish the dilapidated homestead. Ospreys are loyal to their nesting site, and make their return each April. We will keep our eye out for them to see if they take to their newly renovated home. Hopefully they appreciate the repairs we made while they were out. BLT certainly appreciates the efforts of our four BLT members and volunteers. Thanks guys.

More osprey poles are likely to be going up throughout 2007. If this sounds like a project that you would like to get involved in, contact BLT at 508-771-2585 or email rbansfield@yahoo.com.