WASHINGTON, D.C. – Today, U.S. Rep. Mike Carey (R-Ohio-15), a member of the Ways & Means Committee, introduced the Historic Preservation and Land Conservation Certainty Act to end the multi-year backlog of litigation surrounding the conservation easement program. This new settlement program aligns with Congressional reforms included in the SECURE 2.0 provisions of the 2022 Omnibus. This legislation is structured to help fairly and expeditiously clear the backlog of easement cases at the U.S. Tax Court, and to promote historic preservation, natural habitat protection, and economic revitalization policy goals.
“Historic preservationists and property owners should feel confident when using this Congressional tax incentive to protect historic buildings and natural habitats,” said Rep. Carey. “Litigation surrounding conservation easements has caused a backlog at the U.S. Tax Court for years and the program currently isn’t working as Congress intended. The Historic Preservation and Land Conservation Certainty Act will generate billions in current-year revenues for Treasury and will help to resolve the backlog of cases at the U.S. Tax Court, in addition to addressing abuse within the program.”
The Historic Preservation and Land Conservation Certainty Act aligns with the parameters of the SECURE 2.0 Section of the 2022 Omnibus, which included reforms to Section 170(h) of the Internal Revenue Code. These amendments to IRC § 170(h) provide an efficient process to resolve tax controversy surrounding the program, and will:
- Introduce a time-limited, self-executing settlement initiative for partnerships with open cases over qualified conservation contributions made in taxable years ending on or before December 31, 2024;
- Resolve disputes via standardized deduction limits, mechanical tax/penalty calculations, and a streamlined filing process that is consistent with the reforms passed in SECURE 2.0;
- Ensure that property owners who claimed ratios in excess of the limits passed in SECURE 2.0 pay higher settlements that account for penalties where applicable and provide a settlement cap for long-term holding period, family partnerships and historic preservation transactions;
- Avoid the costly case-by-case valuation litigation that has clogged the U.S. Tax Court; and,
- Incentivize partners to elect to resolve tax controversy through a single payment to Treasury thereby significantly reducing the strain on IRS and Tax Court resources.
Full text of the bill can be found here.
###