‘Reckless Republicans’ force Thompson to oppose his own bill

U.S. Rep. Mike Thompson today voted against his own legislation, the Conservation Easement Incentive Act of 2015, after House Republicans rejected Thompson’s amendment to pay for the bill.

Thompson offered an amendment that would not have raised taxes on any individuals, but would have simply given the IRS more time to investigate if someone overstated an asset’s value which could lead to a larger deduction than they are entitled.

Thompson said his amendment was previously proposed by former Ways and Means Chairman Dave Camp, a Republican.

Passing the legislation without paying for it adds $1.2 billion to the deficit.

“This is a conservation policy that I’ve championed since coming to Congress, but House Republicans are acting so fiscally reckless that I cannot even support my own legislation,” said Thompson.

Thompson’s conservation easement legislation was passed as part of a larger tax bill, H.R. 644, none of which was paid for and would add a total of $93 billion to the deficit.

“This conservation tool has preserved millions of acres across our country and we should make it permanent – but we can’t do it by forcing our kids and grandkids to foot the bill. Congress should pay for the bills we pass.”

Under the Conservation Incentive Easement Act of 2015, landowners who donate their property’s development rights would maintain ownership and management of the land, but forgo their rights to develop the land in the future. The legislation would make permanent an enhanced tax incentive for donating development rights that expired at the end of 2014.

In the past, the enhanced tax incentive has been extended on a short-term basis. Consequently, Thompson said, this has created uncertainty among landowners and has discouraged donations because it takes an average of three years to set up a conservation easement, Thompson said.

Making the enhanced incentive permanent will give more farmers, ranchers, and other landowners the assurances they need to choose land conservation over development, he said.

In addition, the Conservation Easement Incentive Act would also help moderate-income landowners choose conservation by:

• Raising the maximum deduction a donor can take for donating a conservation easement from 30 percent of their adjusted gross income (AGI) in any year to 50 percent;
• Allowing qualified farmers and ranchers to deduct up to 100 percent of their AGI; and
• Increasing the number of years over which a donor can take this deduction from 5 to 15 years.