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Pipelines Update: Citizen Education Series Launched

While the immediate threat to conserved land in our region from gas pipeline projects has subsided, drilling in the Marcellus Shale formation, which covers much of the state, means the potential still exists for future natural gas pipeline proposals in northern Chester County. For this reason, West Vincent Township in partnership with West Pikeland Township and Green Valleys Association applied for and received a Department of Transportation Technical Assistance Grant to educate the community about pipelines. The resulting series of educational monthly programs, "People and Pipelines," began in January with a presentation at Welkinweir by industry representatives about their operations and requirements. Up to five additional monthly presentations are scheduled.

Rep. Schroder Introduces Legislation for Regional Pipeline Control

In response to the recent public concern about the profusion of pipeline proposed and approved in Chester County, PA Rep. Curt Schroder (R-East Brandywine) introduced House Bill 1817 to permit regional control over the placement of natural gas pipelines in communities across Pennsylvania. Introduced in July, the bill calls for the establishment of a Mid-Atlantic Area Natural Gas Corridor Interstate Compact, as provided for in the federal Natural Gas Act of 1938. The compact would have the power to govern the siting of interstate natural gas pipelines within their area, replacing the Federal Energy Regulatory Commission (FERC), which currently has exclusive authority. According to Representative Schroder the legislation would "level the playing field and provide a review process that will protect our communities, citizens and natural resources."

Conservation Tax Issues

Help make enhanced tax incentives permanent

The temporary federal enhanced conservation tax incentives first enacted in 2006 expired on December 31, 2009 when Congress failed to pass an extension.  Despite ongoing pressure from the land conservation world, the federal budget does not include the continuation of the enhanced tax incentive for conservation easements (last year's budget contained a one-year extension of the incentive) and the jobs bill draft that contained a one-year retroactive extension of the easement incentive was scrappped. All is not lost, however, as there is still a chance that Congress will pass an extension in another bill.

At the Trust, we have first-hand experience of the powerful inducement the expanded tax deductions are to landowners considering a conservation easement donation. Please take a moment to help us persuade Congress to enact permanent extensions of the incentives.

  1. Call the offices of Senator Casey (866-802-2833) and Senator Specter (202-224-4254)

  2. Ask for the staff member who handles taxes, tell them about the easement incentive and urge them to an extension of the incentives in the new jobs bill.

Until a retroactive extension is passed, the tax deductions for conservation easement donors reverts to their pre-2006 levels: 30% of Adjusted Gross Income may be deducted a year for up to six years' 50% for farmers and ranchers.

Improving conservation incentives in estate tax legislation

The Land Trust Alliance reports that Congress will create legislation in 2010  to keep the estate tax from returning to 2001 levels in 2011.  The land trust community is working to persuade members of Congress to exclude land under easement, or agricultural lands in general, from the estate tax.

Several different proposals are under consideration. One would increase the 2031(c) exclusion to 50% with a $5 million ceiling. Another would defer all estate taxes for lands used for farming or protected with a conservation easement.  For more information about the estate tax and conservation visit www.landtrustalliance.org/policy/taxincentives/estate-tax.

Limits on charitable deductions proposed

The proposed budget also proposes a 28% limit on deductions for charitable donations for upper-income taxpayers. This was opposed in Congress last year, and probably will be once again, but if you are concerned about the effect of such a provision on nonprofit donations, please make your feelings known to your congressman.



Conservation Vignettes