In the odd way of politics, the new Federal Pension Protection Act helps protect family farms, working forests, wildlife and water with added tax benefits, but only through 2007, according to the PA Land Trust Association.

Provisions in the law expand tax benefits for families who enter into agreements to conserve their land. These agreements, often called conservation easements, protect special places and natural resources while keeping land in private ownership.

U.S. Senator Rick Santorum wrote and championed the Act's conservation provisions in Congress. Thanks to his hard work, the generosity of conservation-minded landowners, and the efforts of charitable conservation organizations, more of the forest, family farms and other special places that make Pennsylvania great will be protected for present and future generations.

Conservation agreements establish conservation goals for a property and set limitations on uses of the property to achieve these goals. The landowner keeps control of the property subject to the limits. The agreement is tailored to the character of the property, the wishes of the owner and the purposes of the participating conservation organization.

For example, an agreement might prohibit construction within 200 feet of a stream but allow it everywhere else. Another agreement might support farming and building a residence but forbid any other development. Another might allow sustainable timbering but restrict most other uses. The agreement applies to present and future landowners, protecting the land forever.

With the new tax provisions, federal law now works much better for folks who conserve their valuable land for the benefit of all. (For tax purposes, the value of a conservation easement is the difference between the land's value with the easement and its value without the easement.)

Previously, a family earning $50,000 a year who donated a $1 million conservation easement could take a total of $90,000 in charitable deductions distributed over six years. The new law allows that same family to use $400,000 in deductions over 16 years - a substantial improvement. If the landowner qualifies as a farmer, they might receive up to $800,000 in deductions for their million dollar gift for the public good.

Donations and partial donations that meet IRS requirements can take advantage of the federal tax benefits. However, the decision to enter a conservation agreement is not just about tax benefits. (A landowner can still make more money by selling their land for development.) A conservation agreement is about conserving natural resources and places that matter for our children.

Fifty charitable conservation organizations working in communities across the Commonwealth have partnered with landowners to conserve 150,000 acres of forest, farm and community open space using conservation agreements.

The enhanced tax benefits are only available through 2007, so now is the time for conservation-minded landowners to act.

For more information, visit the Federal Pension Protection Act webpage.

9/1/2006