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2006 – BIG WIN

Land Trusts and Federal Policy 2007 Will the new tax incentive continue? Will every easement donation be audited? Will the Farm Bill increase easement funding?. 2006 – BIG WIN. Biggest increase in benefits for conservation donations since …. Expires at midnight, December 31!. The Good News

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2006 – BIG WIN

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  1. Land Trusts and Federal Policy 2007Will the new tax incentive continue? Will every easement donation be audited? Will the Farm Bill increase easement funding?

  2. 2006 – BIG WIN • Biggest increase in benefits for conservation donations since …. • Expires at midnight, December 31!

  3. The Good News • September 21-- Senate Finance Committee unanimously approves permanent extension • House bill (HR 1576) has 106 cosponsors, including a majority of the members of the House Ways and Means Committee

  4. A fabulous achievement --how did it happen?

  5. A fabulous achievement --how did it happen?

  6. The secret ingredient…

  7. CAN MAKE A CONGRESSPERSON LOVE LAND CONSERVATION!

  8. The not-so-good news… • The House and Senate are not exactly getting along…. • Senator Grassley says he won’t let the bill go forward without new changes to prevent abuse

  9. What was that? Senator Grassley proposed to let the IRS require, for any class of conservation easements for which they believe there are “indicia of abuse”, pre-approval by IRS of any easement donation’s legal qualification and value.

  10. Did we have an alternative? We had discussed the following with Mr. Grassley’s staff: • Making easements on golf courses “reportable transactions.” • Changing the 8283 to require donors to report $/acre values of all prior sales of an eased property over the past 3 years.

  11. What happens next? • House could put HR 1576 into their extenders bill • Senate could put it into their Farm Bill, or some entirely different bill • Everyone could get into an argument about something else and walk out of the room before they do any of this

  12. And on changes to the law? Keep tuned in…

  13. Yipes! What can I do? Do things right! Not just good, right! Have you asked your Congressionals to cosponsor HR 1576/S 496? Have you invited them to see your work?

  14. Will Every Easement Donation Be Audited?

  15. No, but enough will be audited to make our business a bit different in the future • Colorado is a special case – and we (and the IRS) are well aware of it • Remember, THERE ARE BAD EASEMENTS OUT THERE – MAYBE MORE THAN YOU KNOW ABOUT. • The IRS is trying hard to learn the difference between a good easement and a bad easement – and they are having a tough time of it.

  16. The IRS is… • Very literal. They are reading the law and aren’t going to take your word for what it ought to mean. • Very big on following rules. They do not give credit for good intentions. Even the good guys have to follow the rules. • NOT experts on conservation. They don’t know conservation – you have to lay it out for them. • Very suspicious

  17. Land Trust Alliance is… • Working with IRS (they’re here, by the way!) • Working closely with CCLT on helping land trusts deal with audits of donations made to them • Monitoring and trying to influence precedent-setting cases • Providing you with up-to-date information

  18. Federal Funding for Land Conservation – Farm Bill 2007

  19. 2007 Farm Bill • Still totally up in the air! • Where we are focusing: FRPP and GRP –programs that help land trusts buy conservation easements • Two goals: • Reverse declining usability • Increase funding!

  20. House Bill – Passed in July • FRPP gets $125 - $150 - $200- $240 - $280 million • FRPP problems: • Secretary Co-Holds : FIXED • Yellow Book Required : FIXED? • Reversionary Interest: FIXED?? • More than 2% Impervious requires Waiver - ??? • GRP gets another million acres

  21. Senate Bill? • FRPP gets $97 million a year – but wait! • FRPP problems: • Secretary Co-Holds : FIXED • Yellow Book Required : FIXED • Reversionary Interest: FIXED • More than 2% Impervious requires Waiver – FIXED • Cost-share -- IMPROVED • GRP gets $54 million a year – but wait!

  22. I need your help! • The Alliance’s priorities under review – session E20 • Fill out your evaluation • Tell us how we can help you – what else do you want to see at Rally! • The Land Trust Alliance is you! Your success saving land is our goal.

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