Conservation Easement Credit Included in House Tax Plan
On May 29, the House Ways and Means Committee approved legislation that makes permanent the bonus depreciation of improvements for qualified properties; the legislation also made permanent a number of tax measures related to charitable giving.
The depreciation measure, H.R. 4718, was approved out of committee by a vote of 23-11. If enacted, the depreciation measure would make permanent the provisions originally conceived of as temporary economic stimulus. In the Senate, a two-year extension for bonus depreciation has been approved by the Finance Committee but has not seen action on the floor.
The committee also approved legislation to make permanent the enhanced tax benefit for donation of conservation easements. The easement provision allows taxpayers to deduct up to 50 percent of their annual adjusted gross income instead of 30 percent, and to extend the deduction over a 15-year period rather than five years. Farmers can deduct up to 100 percent of income.