Analysis: States Add Tax Breaks on Green Land, Amid IRS Scrutiny

As states continue to embrace conservation easement credits, federal policy makers see easements as prone to valuation distortions and are targeting these programs for tax penalties at the state and federal level.

Recent limitations on charitable contribution easement deductions and a rise in federal litigation challenging the validity of these programs stand in stark contrast to a Biden administration initiative. That campaign, dubbed “30x30,” aims to conserve 30% of US lands and waters by 2030. It relies heavily on voluntary conservation efforts, such as easements delivered by private landowners to nonprofit land trusts.

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