How does the bill change the current tax incentive for conservation donations?
• Raises the deduction a donor can take for donating a conservation easement from 30% of their adjusted gross income in any year to 50%; • Allows qualifying farmers and ranchers to deduct up to 100% of their income; and • Extends the carry-forward period for a donor to take tax deductions for voluntary conservation agreements from 5 to 15 years. 2. Can you give me an example? Under the previous rules, a landowner earning $50,000 a year who donated a $1 million conservation easement could take a $15,000 deduction for the year of the donation and for an additional 5 years – a total of $90,000 in tax deductions. 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 take a maximum of $800,000 in deductions for their million dollar gift. 3. Can anyone deduct more than the value of their gift
