Congress extends federal
income tax benefits for conservation easements
Congress
recently expanded the federal income tax benefits available to
landowners who donate conservation easements. The 2008 Farm Bill
allows qualified farmers and ranchers who donate
conservation easements in 2008 or 2009 to take a federal tax
deduction up to 100 percent of adjusted gross income and to
carry that deduction forward as much as 15 years. The Farm Bill
also raises the deduction other conservation easement donors can
take from 30 to 50 percent of their income. These expanded
benefits will expire at the end of 2009 unless Congress takes
action to extend them.
If you are a farmer, forestland
owner, or owner of other lands with significant conservation
value, donating a conservation easement in the next two years
can enable you to conserve the land you love while maintaining
ownership and possibly realizing considerable tax benefits.
To learn
more about federal tax benefits, consult this
brochure from the Land Trust
Alliance.
Also, North
Carolina is one of the few states that provides state tax
incentives. Donors of land and conservation easements may
qualify for a state income tax credit equal to 25 percent of the
donated value of the land or easement. This credit carries
forward for five years.
To learn more about
conservation easements and the North Carolina state tax credit, consult this
brochure
produced by
the Conservation Trust of North Carolina. Or contact TLC's
conservation professionals at (919) 833-3662 ext. 103.
Other resources:
Conservation
Easements: Frequently Asked Questions
Potential Tax Benefits
Information for
Landowners
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