THOMPSON: HOUSE REPUBLICANS RECKLESSLY REJECT PAYING FOR IMPORTANT CONSERVATION LEGISLATION

WASHINGTON, D.C. – 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, and was previously proposed by former Republican Ways and Means Chairman Dave Camp. Thompson's amendment 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. 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. "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."

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.

The bipartisan Conservation Easement Incentive Act of 2015 provides a permanent enhanced tax incentive to family farmers, ranchers, and other landowners who choose not to develop their land and instead preserve their property for conservation. By providing tax benefits to landowners who choose conservation, the bill helps preserve our nation's farm lands and open spaces for posterity.

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, this has created uncertainty among landowners and has discouraged donations because it takes an average of three years to set up a conservation easement. With a short-term extension, landowners who want to donate their development rights for conservation may not know if the enhanced tax benefits will be available to them by the time their conservation easement is established. Making the enhanced incentive permanent will give more farmers, ranchers, and other landowners the assurances they need to choose land conservation over development.

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.

Congressman Mike Thompson is proud to represent California's 5^th Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma Counties. He is a senior member of the House Ways and Means Committee. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and chairs the bipartisan, bicameral Congressional Wine Caucus.

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