PrintTwo landowner tax incentive programs were included in the Farm Bill. One, that opens private lands to public access, is a two-year extension of expanded tax incentives for conservation easements that provides generous tax deductions to landowners who enter into irrevocable conservation easements on their properties. The other, originally introduced as the Endangered Species Recovery Act is particularly helpful to working farmers, ranchers and woodlot owners to enable them stay on the land and also contribute to the conservation of listed species. These incentives potentially allow sportsmen access to thousands of acres of private forest, ranch and farmlands currently posted "No Hunting-No Fishing".
Conservation Easements
These tax incentives apply to "qualified conservation contributions" which, under Section 170(h) of the tax code, must meet one of the following "conservation purposes" tests:
1. The preservation of land areas for outdoor recreation by, or the education of, the general public;
2. The protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem;
3. The preservation of open space for the scenic enjoyment of the general public, or pursuant to a clearly delineated governmental policy, which will yield a significant public benefit; and
4. The preservation of an historically important land area or a certified historic structure.
A further requirement under section 170(h) is that these conservation purposes must be enforceable in perpetuity. In the case of a conservation easement, this means at least two things: a) the easement must be perpetual, and b) the restrictions imposed by the easement must actually protect the conservation values of the property.
Endangered Species Recovery Act
ESRA takes a new approach to updating the Endangered Species Act by providing tax incentives to farmers, ranchers and private landowners who voluntarily enter into agreements to protect habitats of endangered and threatened species.
Tax credits would be realized by eligible landowners entering into a conservation easement for habitat protection, or a habitat protection agreement that provides restoration of habitat for listed species. Easements may be held by the appropriate Secretary, the Secretary of Agriculture, or a State, either in perpetuity or, under some circumstances, for not less than 30 years. The provision would also exclude from tax liability, federal cost share payments to private landowners under the Partners for Fish and Wildlife Program; the Landowner Incentive Program; the State Wildlife Grants Program; and the Private Stewardship Grants Program.
"Under the leadership of CSF, this legislation has become an important bridge builder between many diverse groups with more than 35 hunting, fishing and conservation groups supporting this legislation." Senator Mike Crapo (R-ID)
