Public Policy
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The Peconic Land Trust is committed to keeping landowners, donors and our government partners up to date on the latest issues concerning land conservation legislation. Please check back often for updates.
For links to contact your Government officials, click here.
Latest News
2011/2012 Updates & 2012 Priorities
- Gift and Estate Tax Legislation Increases Lifetime Gift to $5 Million: Sunsets December 31, 2012
- Conservation Easement Incentive Act and the Federal Estate Tax
- New York State's Environmental Protection Fund and the Conservation Partnership Program
- America's Great Outdoor Initiative
- Environmental Protection Fund FY2010/2011
- Background on the Estate Tax
Gift and Estate Tax Legislation Increases Lifetime Figt to $5 million: Sunsets December 31, 2012
As of January 1, 2011, the US Congress passed favorable gift and estate tax laws that could benefit landowners on the East End before the end of 2012. As you know, the Trust has been working for many years on estate tax and other transfer tax issues in order to stem the tide of land, particularly farmland, being lost due to the estate tax, or the anticipation of the tax. These new laws, which are only in effect until December 31, 2012, may be an opportunity for farmers and other landowners to pass land of conservation value to the next generation with the least amount of tax exposure.
Of most importance is the increase of exemptions to $5 million for Gifts. Beginning January 1, 2011, individuals can give up to $5 million (or $10 million per couple) free of gift tax, reduced by any portion of the exemption used in prior years. Gifts over $5 million will be subject to a 35% tax rate.
Beginning January 1, 2011, the estate tax is also now reinstated with a 35% rate, a $5 million exemption, and stepped-up basis for all assets included in the estate for estate tax purposes. However, for decedents dying in 2010 and before the date of enactment, the estate can elect to pay no estate tax in favor of the carryover basis rules, with an allocation of $1.3 million of basis step-up and an additional $3 million for assets passing to a spouse.
Also reinstated was the Generation Skipping Tax (GST), effective January 2010, with a $5 million exemption. However, the tax rate is 0% for 2010 transfers. The rate increased to 35% effective January 1, 2011. This historically low rate is an opportunity if you are interested in GST planning, specifically direct gifts or gifts in trust to grandchildren only.
If these can be applied to your estate, it is not too early to start planning -- you only have until December 31, 2012 before these laws potentially sunset. Please consult your legal and tax advisers to see how these could be applied to your specific situation. As always, the Trust does not provide legal advice, but we are available to speak with you and your advisers as needed. If you have any questions, please contact Julie Zaykowski at 631.283.3195 or jzaykowski@peconiclandtrust.org.
Conservation Easement Incentive Act and the Federal Estate Tax
Updates on this legislation will be posted soon regarding 2012. No bill was enacted for the year 2012 as of yet.
In December 2010, H.R. 4853: Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act dealt with two pressing issues: enhanced tax incenteives for conservation easements and the federal estate tax. In this Act, Congress renewed the enhanced tax incentive for conservation easements, which will now be in effect through December 31, 2011 and is retroactive to January 1, 2010. The incentive, which applies to donations in 2010 and 2011, raises the income tax deduction a landower can take for donating a conservation easement from 30% of their income in any year to 50%; allows farmers and ranchers to deduct up to 100% of their income; and increases the number of years over which a donor can take deductions from 6 to 16 years. It also extends the S Corporation donation incentive and the IRA Charitable Rollover through 2011.
In mid-February, Senators Max Baucus and Charels Grassley and Congressmen Jim Gerlach and Mike Thompson announced the reintroduction of legislation to make the enhanced conservation easement tax incentive permanent. If you would like to help support this legislation, please call your senators and representatives today and ask to speak with the staff members who handle tax issues:
- Ask your senators to co-sponsor the Rural Heritage Conservation Act, S. 339, by contacting Tiffany Smith at the Senate Finance Committee.
- Ask your representative to become an original co-sponsor of the Conservation Easement Incentive Act by contacting Lori Prater in Rep. Gerlach's office or Carla McNeill in Rep. Thompson's office.
And, as it relates to the federal gift and estate tax, it increased the available exemption to $5 million per person, and decreased the marginal gift and estate tax rate to 35%. However, this change is only in place for two years. Please consult with your tax advisors to see how these changes could affect your individual situation.
We will continue to work with our local representatives, particularly Congressman Bishop, on a long term solution for the estate tax as it relates to land of conservation value. It is expected that Congressman Bishop will reintroduce his legislations (Farmland Preservation and Land Conservation Act) in the new Congress. Information on Congressman Bishop's legislation, as well as other legislative issues related to the Federal Estate Tax, can be found below.
New York State's Environmental Protection Fund and the Conservation Partnership Program
In 2012, the Peconic Land Trust will continue to work with local and state representatives on protecting the funding for the Environmental Protection Fund (EPF) including the Conservation Partnership Program (CPP), which provides grants for land trusts and community conservation organizations. We will once again lobby with other New York State land trusts and the Friends of New York's Environment, a coalition of land conservation and environmental groups from across the state, as well as with American Farmland Trust during its No Farms No Food rally. The recent budget proposal (FY2012/2013) from Governor Cuomo's office mostly protects the funding levels from 2011. The focus on lobbying efforts this year will be to ask Legislators to hold the line, recognizing that while many other areas of the budget are seeing more severe cuts, the EPF has already undergone drastic reductions in the previous fiscal year (see below for more details on the FY2010/2011 budget).
This year, the New York Land Trust Alliance will have a joint lobby day with the Friends of New York's Environment, scheduled for Monday, February 13, 2012; the No Foods No Farms rally will a few days later, on Wednesday, February 15, 2012.For more details, contact Julie Zaykowski at 631.283.3195.
If you can't join us in Albany, we ask that you contact your local representatives and ask them to support the Governor's funding levels for the EPF at $134 million. Let them know how important the environment is to you and your family, and how the EPF supports industries taht cotnribute billions to the state's economy, inlcuidng tourism, agriculture, forestry, and private investment in programs including recycling.
The Peconic Land Trust has once again joined a broad industry coalition to urge the NY State Legislature to restore funding to the EPF. The campaign, We Love New York, provides detailed information on how supporters of the EPF can lobby their legislators in support of the funding. For more information, visit their website at http://keepprotectingny.com.
America's Great Outdoors
In April 2010, John v.H. Halsey, President of the Peconic Land Trust, joined more than three dozen land trust leaders at the White House Conference for the America's Great Outdoors Initiative.
The conference kicked off with a welcome speech by President Barack Obama, who applauded the work of the land trust community: "... rising to meet these challenges is a task and an obligation, but it's one that government cannot and should not meet alone. There are roughly 1,600 privately run land trusts in this country that have protected over 10 million acres through voluntary efforts. . . . together we are conserving our working lands in a way that preserves the environment and protects local communities."
At the meeting, President Obama signed a Presidential Memorandum seeking a report on America's Great Outdoors from the Initiative by November 15th. The Initiative is led by the Secretaries of Interior and Agriculture, the Administrator of the Environmental Protection Agency, and the Chair of the Council on Environmental Quality.
In his speech to the conference, the President outlined four ways he believes the government, in concert with public and private entities such as land trusts, can move the conservation story forward:
First, we're going to build on successful conservation efforts being spearheaded outside of Washington so we can write a new chapter in the protection of rivers, wildlife habitats, historic sites, and the great landscapes of our country
Second, we're going to help farmers, ranchers, property owners who want to protect their lands for their children and grandchildren.
Third, we'll help families spend more time outdoors, building on what the First Lady has done through the "let's move" initiative to encourage young people to hike and bike and get outside more often.
And fourth, we want to foster a new generation of community and urban parks so that children across American have the chance to experience places like Millennium Park in my own Chicago.
The conference generated a lot of discussion among the approximately 500 participants from all over the country . . . and John as always turned the conversation toward what the Trust's believes to be a leading factor in the loss of working farms: estate taxes -- a critical issue that is at the forefront of making the President's second point a reality for our local farm families.
The Department of the Interior set up a great website for America's Great Outdoors where the public was invited to vote on ideas for conservation, and submit their own -- including stories about land conservation. Members of the land trust community took advantage of this opportunity, and shared their stories on issues important to our community, in particular around the issues of making permanent the tax incentives for conservation easements. This made what we all do and care about real to the folks in Washington. Thank you for your contributions.
In February 2011, the landmark America’s Great Outdoors Report was introduced by President Obama at a reception at the White House. At the introduction, the President gave a boost to voluntary conservation of private land by mentioning the work of the land trust community in his remarks and the incorporation of land trust initiatives in the final report, which includes proposals to extend the enhanced tax incentives for conservation easement donations beyond 2011, fully funding the Land and Water Conservation Fund (LWCF), and focus a portion of LWCF on innovative projects that support urban parks, community green spaces, and large-scale land conservation.
Mr. Obama said at the reception: “at a time when America’s open spaces are controlled by a patchwork of groups, from government to land trusts to private citizens, it’s clear that conservation in the 21st century is going to take more than what we can do here in Washington . . . Meeting the new test of environmental stewardship means finding the best ideas at the grassroots level, it means helping states, communities and nonprofits protect their own resources, and it means figuring out how the federal government can be a better partner in those efforts.”
The report drew inspiration from hundreds of land trust participants at America’s Great Outdoors listening sessions from around the country.
To learn more about America’s Great Outdoor initiative, and to read the report, visit the Department of Interiors website at http://americasgreatoutdoors.gov.
Environmental Protection Fund FY2010/2011:
In January 2010, the Governor's budget proposal called for a 33% cut in the EPF, which included the elimination of the EPF funding for the state's Open Space acquisitions and a more than 50% reduction in funding for Farmland Protection.
June 1, 2010: A compromise was reached on the EPF before the Memorial Day weekend, which staved off proposed "off-loads," including a new one that would have used EPF funding to re-open closed parks. However, the fund received $134 million in the 2010/11 budget, versus the $220 that was requested. A 37% cut from the previous year's funding level. There was also no provision for restoring the nearly $500 million that has been swept.
Background on the Estate Tax
Congressman Bishop introduced legislation in early March 2009, Farmland Preservation and Land Conservation Act of 2009 (HR 1328), which sought to exclude land of conservation value from estate tax consideration. Click here for a PDF of the legislation. The Trust has prepared two explantory documents: a white paper on the impact of Federal Estate Tax policy on farmland and natural lands and the Trust's recommendations for policy revision; and a white paper on the key points of HR 1328.
- In December, Trust President John v.H. Halsey wrote a letter to the editor of the New York Times in response to a recent Op-Ed (and subsequent letters) regarding the Estate Tax and Farmers. To read the letter, click here.
If you would like to learn more about these, or other public policy issues affecting land conservation in our communities, please contact Julie Zaykowski at 631.283.3195 or email to jzaykowski@peconiclandtrust.org. Additionally, the Land Trust Alliance's website provides additional information on public policy issues impacting land conservation.
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Interested in reaching out? Here are links for Government Officials:
Suffolk County Legislature: www.co.suffolk.ny.us/
Nassau County Legislture: www.nassaucountyny.gov
New York State Governor's Office: www.ny.gov/governor/contact/index.html
New York State Senate: www.senate.state.ny.us/
New York State Assembly: www.assembly.state.ny.us/
U.S. Senate: www.senate.gov/
U.S. House of Representatives: www.house.gov/
U.S. Capitol Switchboard: 202.224.3121