Congress Overrides Presidential Veto on Farm Bill- Increased Tax Incentives for Preservation and Conservation Easements Renewed

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In August of 2006 the laws relating to donations of qualified conservation contributions, otherwise referred to as preservation and conservation easements, were changed. These changes included increases in the annual amount a taxpayer could deduct for the donation of a qualified conservation contribution from 30 percent to 50 percent of a taxpayer's contribution base (adjusted gross income less net operating loss carrybacks) and an extension of the carry-over period for deductions from five to fifteen years. Qualified Farmers and Ranchers were given even greater incentives, allowing for these individuals to deduct up to 100 percent of their contribution base and carry-over up to fifteen years. These increases were temporary and expired on December 31, 2007.

 

Historic
This house was the subject of the 1988 tax court case Losch v. Commissioner, T.C. Memo 1988-230, 55 T.C.M. 909 (CCH). The National Trust holds a preservation easement on this property.

Credit: NTHP

Over the last year congress has been working to renew these provisions, and on May 22, 2008 congress voted to override the President’s veto, enacting the Food, Conservation, and Energy Act of 2008 as Public Law 110-234 . 

 

Public Law 110-234 renews the incentives passed in 2006 and extends them from January 1, 2008 until December 31, 2009. Accordingly, donors of qualified conservation contributions may deduct up to 50 percent of their contribution base (adjusted gross income less net operating loss carrybacks) and carry-over any used portion of the deduction for up to fifteen years. Qualified Farmers and Ranchers may deduct up to 100 percent of their contribution base and carry-over up to fifteen years.