Maine Land Conservation Law E-Bulletin December 2010

In this Issue:

• Introduction
• Conservation Easement Tax Incentives Extended
• Tax Treatment for Canadian Property Donations Now More Favorable
• Upcoming Event – Advanced Conservation CLE

Introduction

Welcome to this issue of the Maine Land Conservation Law E-Bulletin!  I send E-Bulletins 3 or 4 times per year to provide updates and analyses on legal and policy matters respecting Maine land conservation.  I do my best to keep my messages brief, timely, and useful to conservation-minded landowners, as well as land trust professionals and volunteers.  At the same time, no one should rely on these E-Bulletins as legal advice, and I encourage you to consult a qualified attorney for advice on any particular situation.

If you find this free E-Bulletin to be valuable and interesting, please forward it to a friend or colleague.  Subscriptions remain free, and I respect my subscribers’ privacy.  Anyone who would like to receive this E-Bulletin or the Maine Nonprofit Law E-Bulletin can e-mail me at rob [at] roblevin.net.  If you’d like to be removed from my list, simply drop me a line at that same address.

Conservation Easement Tax Incentives Extended

The recent tax deal brokered between President Obama and Congress extends through the end of 2011 the enhanced federal income tax incentives for the donation of conservation easements.  Those incentives previously had expired at the end of 2009.  Any conservation easement (but not land) donations made in 2010 or 2011 now qualify for the incentives.  These incentives:

• Raise the income tax deduction a conservation easement donor can take from 30% of their income in any year to 50%;
• Allow farmers (which includes those who derive the majority of their income from forest management) and ranchers to deduct up to 100% of their income; and
• Increase the carryover period (i.e., length of time over which a donor can claim deductions) from 6 to 16 years.

The tax deal also maintains the federal estate tax, although at a top rate of 35% and for estates with assets of $5 million or greater.  The estate-tax-related conservation easement incentives of § 2031(c) continue, but additional incentives championed by the Land Trust Alliance and local land trusts did not make it into the bill.

Tax Treatment for Canadian Property Donations Now More Favorable

The American Friends of Canadian Land Trusts (AFoCLT) and the Canadian Minister of Finance, Jim Flaherty, jointly announced a new environmental initiative that has opened the door to enhanced protection of natural areas across the country.  Canadian land trusts faced a major barrier to protecting many unique and significant natural areas across Canada owned by Americans.  Americans who wished to protect land in Canada were required to pay often hefty Canadian capital gains tax on their conservation gift.  In response land conservation leaders formed a new U.S. charity, AFoCLT to act on both sides of the border to provide the legal mechanism and structure required to make such ‘cross-border’ land conservation possible.  At the end of October changes to the Canadian Income Tax Act regulations removed the capital gains tax on cross-border gifts of land through the leadership of Minister Jim Flaherty and AFoCLT.  For more information, see http://www.nsnt.ca/af/.

Upcoming Event: Advanced Conservation CLE

 What:  Second Symposium on Advanced Legal Topics in Land Conservation

Where:  Boston, Massachusetts

When: February 7-8, 2011

This two-day symposium will feature Maine attorneys Rob Levin and Karin Marchetti Ponte, as well as many national land conservation legal experts.  It is an experts-only opportunity to stay current on the latest developments and collaborate with colleagues on approaches to perplexing issues.  This level of advanced discussion on emerging issues in land conservation is rarely available, so take advantage of this opportunity to gather with your colleagues to discuss and contribute insights on complex conservation challenges. Register at www.lta.org/legal.

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              CIRCULAR 230 DISCLOSURE: Any federal tax advice contained in this communication or attachment is not to be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing or recommending any transaction or matter addressed in this communication.

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