LAND CONSERVATION NEWS 1/6/12

Issue Number 185

 

Financial incentives for land conservation turn topsy turvy: With the beginning of the new year, the Federal incentives for land conservation decrease while the state’s incentives increase. Because the Congress failed to extend or make permanent the enhanced incentives enacted in 2006 and then extended through 2011, deductions for donations of conservation easements now revert to their pre-2006 level: a deduction of 30% of adjusted gross income which can be carried forward for up to five years. On the positive side, Georgia’s incentives for land conservation increase, with earned tax credits now being transferable (including those earned but not used since 2006; see next article). Whether, in sum, the decrease in Federal incentives and the increase in state incentives are more or less of a financial incentive than last year will depend on the individual taxpayer’s financial situation.  

 

Final Rules on the transferable tax credit issued: On January 4, the Georgia Department of Revenue (DOR) posted the Final Rules for the Conservation Tax Credit (Chapter 560-7-8-.50) on their web site. As expected, there were no substantive changes made to the Proposed Rules issued on November 7, 2011.

 

Several key features of the Final Rule include:

 

  • The transferability of unused tax credits is retroactive. “Beginning on January 1, 2012, a taxpayer may sell or transfer in whole or in part any conservation tax credit, previously claimed but not used by such taxpayer…” (Rule Paragraph 11). Comment: In other words, tax credits earned in, say, 2010 or 2011, can now be sold.

 

  • The conservation tax credit can be transferred before the tax return is filed by the taxpayer (Paragraph 11 a). Comment: That means now! However, the taxpayer must file Form IT-TRANS, “Notice of Tax Credit Transfer” with DOR within 30 days of the transfer (Paragraph 11 b).  

 

  • To claim the tax credit, the taxpayer must submit forms to DOR, including Form IT-CONSV, certifications from DNR and an appraisal of the donated property, with the taxpayer’s Georgia tax return in the year in which the qualified donation occurred (Paragraph 7). Comment: note that DOR does not see evidence of the land’s certified conservation values or the appraisal until as much as 22 months after the credit can be transferred.

 

  • The carry forward period is ten years for both the taxpayer and the transferee (Paragraph 11 d).

 

To get your own copy of the Final Rule, go to:

https://etax.dor.ga.gov/inctax/newregs/1-4-12%20%20Rule%20560-7-8-%2050%

20Conservation%20Tax%20Credit.pdf

Governor expected to recommend major changes to land conservation tax credit law in Georgia: The Advisory Group assembled by the State Properties Commission have sent draft recommendations to the Governor’s Office on how to tighten up conservation easement laws (including the transferable tax credit law passed last year). It is not clear yet when their recommendations will be made public. The Governor is expected to recommend reforms based on the Advisory Group’s recommendations to the General Assembly – which starts January 9.

 

2012 Southeast Land Conservation Conference program: The Southeast U.S. Program Office of the Land Trust Alliance will soon announce details of the Conference on their web site: www.landtrustalliance.org  The event will be held March 14-16 at Sea Palms on St. Simons Island. Here is an outline of the program:

 

            Wednesday, March 14

 

9:00 to 12:00 pm: Special seminars on land trust accreditation preparation and essentials for land trust beginners (separate registration is required for these events: contact southeast@lta.org for more information)

 

1:30 to 4:30 pm: Four concurrent seminars. Topics will be: Community based conservation; partnerships for protection with the Department of Defense; public policy and tax incentives for land conservation; and easement stewardship and monitoring.

 

                        5:00 to 6:30 pm: Welcoming reception

 

8:00 to 9:30 pm: Georgia Conclave – focus on the current status of transferable tax credit program and the roles that facilitators and brokers play in the process.

 

            Thursday, March 15

 

9:00 to 12:00 pm: Four concurrent seminars. Topics will be: Marketing (part 1); board member 1-2-3; Conserving southern forests (part 1); and conservation easement transactions.

 

12:00 to 1:30 pm: Lunch and comments from Rand Wentworth, President, Land Trust Alliance.

 

2:00 to 5:00 pm: Four concurrent seminars. Topics will be: Marketing (part 2); empowering your board to fundraise; conserving southern forests (part 2); and resources for climate change response.

 

6:30 pm: Oyster roast

 

 

            Friday, March 16

 

                        9:00 to 12:00 pm: Optional field trip led by the St. Simons Land Trust

 

Registration forms, lodging and other information will soon be available at www.landtrustalliance.org  Registration will start on about January 17.

 

Georgia the 4th fastest growing state: In case you missed it, the Census Bureau has recently released population growth figures for the period between April 1, 2010 and July 1, 2011. During this 15-month period, the nation’s growth rate was the lowest since before the baby boom, but some states including Georgia continued to grow rapidly. Georgia grew at a rate of 1.32%, adding 128,000 people. Only Texas, California and Florida grew faster. Much of Georgia’s growth occurred in the Piedmont, further straining open space resources like agricultural land and natural habitats.

 

Changes

 

Nancy Stangle, Executive Director of the Athens Land Trust, is moving to a new role as Emerita Director, where she will focus on resource development and the land-term sustainability of ALT. Taking over as Director of Operations in charge of the day-to-day management of ALT will be Heather Benham. Previously, she was ALT’s Housing Director. Laura Hall continues as Land Conservation Director.

 

The Madison-Morgan Conservancy has new officers for 2012: Robert Trulock, President; Carolyn Ainslie, Vice President; Betsy Morehouse, Treasurer; and Chris Brandon, Secretary.

 

Mark Wenger will be the new Executive Director of the Appalachian Trail Conservancy starting in February. He replaces David Startzell, who had held the post for 25 years. The Conservancy is the umbrella organization for the Appalachian Trail Conservancy Land Trust, which is located in Harpers Ferry, VA, and which holds conservation easements in Georgia.

 

 

Land Conservation News is a periodic communication produced by the Georgia Land Conservation Center for land trust leaders and others who care about the future of open space in Georgia. To subscribe or to contribute news items, please contact Hans Neuhauser at the Georgia Land Conservation Center: 706-546-7507 or hans@galandcc.com