Iowa Natural Heritage Foundation: trout of iowa

The federal government’s latest attempts to generate revenues could damage conservation and its public benefits—and impact Iowa’s conservation landowners.

The Congressional Joint Committee on Taxation’s recommendations to the U.S. Senate Finance Committee seem intent on reducing conservation land tax deductions. If they succeed, they’ll reduce the public benefits those deductions encourage.

The committee’s proposals include limiting the charitable deduction to 33% of current fair value per donated conservation easement, eliminating all deductions if the owner resides on easement lands and limiting the charitable deduction on land donated or sold below market value to the property’s basis rather than current market value. Moreover, conservation easements could be forced to conform to state or local government plans, even though governments seldom plan to protect the full range of natural resources typically protected by easements. Any one of these changes could dramatically reduce private, voluntary land protection and the effectiveness of land trusts—including the Iowa Natural Heritage Foundation— and government agencies.

While Congress is reacting to some reported abuses of the current system, their proposed cure could kill the patient. Alternatively, the land trust community (through our national association, the Land Trust Alliance) supports targeted action to end any abuses and is developing a private accreditation program to raise standards and eliminate “bad actors.” This will make it easier for the IRS to enforce existing law by targeting unprofessional activities.

It is important to help Congress understand two concepts before they try to fix tax policies that are generally working well.

Tax incentives are the most cost-effective land protection tool used by government. The public cost is pennies on the dollar compared to public purchase of land. Donors give far more in market value than they can ever recover through tax deductions. Even on properties that remain closed to public use, easements provide public benefits like wildlife habitat, water quality protection and spectacular scenery.

Though most conservation donors aren’t motivated by tax deductions alone, INHF can cite many examples where tax deductions helped spur an ambivalent landowner to action or bring a less supportive joint owner to the table.

America—and Iowa—have benefited from conservation projects that reward private donors with tax deductions. These deduction costs pale in comparison to public costs of protecting these lands at full market value or, worse, not protecting them at all. Almost all of Iowa’s land is privately owned. Let’s not discourage Iowans from protecting important natural, cultural and recreational resource lands and waters.

Mark C. Ackelson is President of the Iowa Natural Heritage Foundation and one of the founders and current board members of the Land Trust Alliance

Proposed legislation reduces conservation