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.
|