U.S. Congress Moves to Expand Conservation Easement Tax Incentive for Land Preservation

According to CNBC, the U.S. Congress is moving to expand a land preservation tax incentive through proposed farm bill provisions. The new program would provide funding to landowners who agree to keep forests intact rather than sell or develop them.

The Internal Revenue Service has spent nearly a decade targeting conservation easement abuse, particularly syndicated deals where investors inflated property valuations to claim excessive tax deductions. In a recent Tax Court case, a $41.6 million deduction claimed by an Alabama partnership was slashed to $800,000. However, lawyers specializing in conservation easements told CNBC that the strategy still holds legitimate value for individual landowners seeking to preserve property while obtaining tax benefits, provided they work with qualified legal counsel and avoid inflated valuations.