Young Moves Legislation Through House to Provide Equitable Tax Treatment for Alaska Native Corporations

Washington, D.C. – Legislation introduced by Alaskan Congressman Don Young to provide Alaska Native Corporations (ANCs) an equitable tax deduction for the donation of conservation easements has successfully passed the House as part of H.R. 644, the America Gives More Act of 2015.

On January 13, 2015, Congressman Young introduced legislation to raise the tax deduction cap for conservation easement donations made by ANCs. His legislation, which was folded into H.R. 664, works to bring the conservation easement tax deduction in line with what is currently available to certain farmers or ranchers making similar donations.

Under the existing tax code, corporations owned by farmers and ranchers are permitted to deduct the value of a conservation easement donation by up to 100% of their Adjusted Gross Income (AGI), however ANCs are only eligible to claim up to 10% for the same type of easement donation. 

“ANCs generally pay federal corporate taxes at the highest marginal rate, but are not eligible for the same corporate tax credits available to other corporations,” said Congressman Don Young. “In order to ensure the tax code for ANCs is in line with other non-Alaska Native corporations who donate conservation easements, I believe raising the cap is the right thing to do. This change will further the spirit of ANCSA by allowing ANCSA Native Corporations to maintain the underlying ownership of their lands, while maximizing its economic, cultural, and conservation values.”

Congressman Young’s language does not mandate the creation of conservation easements, but allows ANCs and their Native shareholders greater flexibility to determine, for themselves, what lands are best suited for utilizing the option.

H.R.644, a bipartisan package of four charitable tax donation bills, passed the House today by a margin of 279 to 137. The package included the following provisions:

• The Conservation Easement Incentive Act – would make permanent the tax deduction for charitable contributions by individuals and corporations of real property interests for conservation purposes – includes language introduced by Congressman Young;
• The Fighting Hunger Incentive Act – would make permanent the tax deduction for charitable contributions of food inventory by farmers, restaurants and grocery stores;
• The Permanent IRA Contribution Act – would allow seniors to contribute annually from their Individual Retirement Account (IRA) to charitable organizations without a tax penalty;
• The Private Foundation Excise Tax Simplification Act – would reduce administrative and compliance costs for private foundations by decreasing the investment income excise tax rate in order to encourage greater giving.

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