Congress Moves To Expand Conservation Easement Tax Incentive

According to CNBC, Congress is moving to expand a land preservation tax incentive that has been under IRS scrutiny for nearly a decade, with House and Senate farm bill proposals that would create a new program to fund landowners who keep forests intact rather than sell or develop them. The IRS has cracked down on conservation easements after investors used them to generate billions of dollars in inflated tax deductions, but lawyers said the strategy still has value for individuals and families that want to preserve land and reduce taxes. A recent U.S. Tax Court ruling cut an Alabama partnership's claimed $41.6 million deduction to $800,000, and the IRS still has about 1,100 cases in its backlog after extending a settlement offer in May.