It’s that time of year. While most are consumed with thoughts about gifts for that impossible relative or honing survival skills for holiday parties, I find my mind preoccupied with Richmond and a new General Assembly session.
Land Conservation Policy
Public policy decisions impacting land conservation in the Commonwealth.
Speaking Up for Land Conservation
(By Rex Linville) My job with The Piedmont Environmental Council usually has me visiting farms and forests in Albemarle and Greene counties and advising landowners on conservation strategies for their property. But early this November, I found myself on Constitution Avenue in Washington, D.C. offering public comment to the IRS about proposed regulations that would adversely impact land conservation in Virginia…
New IRS Proposal Would Hurt Land Conservation in Virginia
On August 27, 2018 the IRS proposed new regulations changing how it would characterize state income tax credits (such as the Virginia Land Preservation Tax Credit “LPTC”) that are received when people make charitable gifts. If this rule passes, landowners who donate conservation easements would have to count the Virginia LPTC issued to them as a payment and their federal income tax deduction would be reduced by the value of the state tax credits received.
Your General Assembly Update
The beginning of spring marks the end of the 2018 Virginia General Assembly session. Well, sort of. In the case of the budget, there was no resolution, which means the fate of conservation funding and the general path forward is still up in the air. To address this, the Governor has announced that a special session will convene on April 11.
One of the bigger issues taking up bandwidth this year was Medicaid expansion. The House’s budget bill included the expansion, while the Senate’s bill did not — this set up a showdown in the budget conference committee. Due to this and other differences, the conferees were unable to come to an agreement, meaning it will be some time before we know what programs will be affected.
Advocating for Strong Land Conservation Policies
Successful land conservation requires action at all levels to protect the Commonwealth’s diverse landscapes. Land conservation is critical in achieving measurable goals on protecting water quality, water supply, climate resiliency, and the Chesapeake Bay. State agencies, local communities, and private individuals need the right tools to protect working farms and forests, scenic landscapes, natural areas, wildlife habitat and game lands, historic resources, and parks and recreational areas for Virginia’s present and future generations. Virginia currently has a variety of programs and approaches that can deliver lasting results across the Commonwealth.
Regarding the Mountain Valley Pipeline (MVP) and Conservation Easements
PEC Comments to VOF on June 22, 2017: “…As we did at your February 9th meeting in regard to the Atlantic Coast Pipeline, PEC encourages the VOF Board to vote NO on the Mountain Valley Pipeline request for a 1704 Conversion/Diversion to allow an industrial access road through the “Terry Property” in Roanoke County…”
Regarding the Atlantic Coast Pipeline & Conservation Easements
A decision is being considered that could have a profound and lasting effect on the integrity of conservation easement programs in Virginia.
General Assembly eyes further cuts to land conservation
The Virginia General Assembly will kick off on January 11, 2017, and with a budget shortfall weighing heavily on the minds of our legislators, a lot of cuts are being discussed. Of particular concern is HB 1470, which would substantially reduce the tax incentives for land conservation.
Legislation to Benefit Land Conservation
We are excited to announce that Congress recently passed legislation to permanently enhance the federal income tax deduction for the donation of a conservation easement. The new law allows conservation easement donors to deduct their donation at the rate of 50 percent of their Adjusted Gross Income (AGI) per year, and they can carry forward any excess contribution for as many as 15 years. Further, a qualified farmer can deduct their easement donation at the rate of 100 percent of AGI per year, potentially paying no federal income tax for the next 15 years.
Conservation Easement Enforcement Goes Before the Virginia Supreme Court
UPDATE: On Feb 12, 2016, the Virginia Supreme Court issued a ruling in Wetlands America Trust, Inc. v. White Cloud Nine Ventures, L.P. The decision by the Virginia Supreme Court affirms the validity of perpetual conservation easements in the Commonwealth. Troublingly though, the court clarified the standard of review for conservation easements as “strict construction,” which means the presumption on any ambiguity will be a finding in favor of the “free use of land.”
At a practical level, the ruling will impact how land trusts steward current easements and underscores the importance of specificity in the drafting of future easements.