Number: RL34338
Title: Legal Analysis of the Conservation Easement Tax Credit in the Senate Version of H.R. 2419 (the 2007 Farm Bill)
Authors: Kristina Alexander and Erika Lunder, American Law Division 
Abstract: Section 12204 of the Food and Energy Security Act of 2007 (H.R. 2419, as passed by the Senate) would create a new tax credit for taxpayers who agree to protect a qualified species for a specified amount of time under an approved plan. The amount of the credit would depend on whether the taxpayer, as part of the plan, granted a conservation easement to a federal agency or state in order to protect the species' habitat. Conservation easements appeal to both landowners and those who favor environmental protection. Issues arise in balancing the amount of protection provided with the tax credit given, in order to provide a fair public benefit in exchange for the funds. Also, enforcement can prove difficult, in light of the expanse of the program, the fact-specific nature of monitoring, and the number of parties that could be involved. The House-passed version of H.R. 2419 does not include the proposed tax credit. The Senate has insisted on its amendment of H.R. 2419 and requested a conference. House and Senate staff are engaged in active discussion.
Pages: 10
Date: January 24, 2008