The USDA has opened the public comment period for Agricultural Conservation Easement Program Interim Final Rule

The U.S. Department of Agriculture is accepting public comments on its interim final rule for the new Agricultural Conservation Easement Program (ACEP). Agriculture Secretary, Tom Vilsack explains that "Since 2009, USDA has worked with producers and private landowners to enroll a record number of acres in conservation programs. This interim rule takes into account recommendations from the agricultural landowners and conservation stakeholders about how to better streamline and enhance conservation easement processes." The comment period is 60 days and began on February 26th. Electronic comments must be submitted through regulations.gov. More information about ACEP and the interim final rule can be found here. 

Must Pass Through Senate Next

On February 12, the House of Representatives voted 279-127 to make permanent the enhanced tax incentive for the donation of qualified conservation contributions. Typically these contributions are conservation easements, but a donation of an entire interest by the donor also qualifies. The incentive expired at the end of 2014, following a retroactive extension to cover donations made during the past year. The House-passed bill making the incentive permanent must now pass the Senate and be signed by the President before it becomes law.

 Donors will be allowed to deduct the value of the donated property up to 50% of adjusted gross income (AGI). Qualified farmers and ranchers will be permitted to deduct up to 100% of AGI. The carryover period for the deduction of conservation contributions will be 15 years. Without this incentive, a limit of 30% of AGI would apply to gifts of appreciated property with a five-year carryover period.