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Congress Passes Bipartisan Package of Charitable Tax Bills



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Includes Language Offered By Rep. Young for Favorable Alaska Native Corporation Tax Treatment

Washington, D.C. – The House of Representatives today passed H.R. 4719, the American Gives More Act of 2014, a bipartisan package of five charitable tax donation bills that included language offered by Alaskan Congressman Don Young to protect and extend favorable tax treatment for Alaska Native Corporations (ANCs).

On May 22, 2014, Congressman Young introduced H.R. 4721, which would allow Alaska Native Corporations an equitable tax deduction for donations of conservation easements related to lands conveyed under the Alaska Native Claims Settlement Act (ANCSA). Under the current tax code, the federal government permits corporations owned by farmers and ranchers to deduct the value of a conservation easement donation up to 100% of their Adjusted Gross Income (AGI).  However, ANCs are only eligible to claim up to 10% for the same easement donation.  Congressman Young’s language in H.R. 4719 would change that by raising the cap to match the 100% deduction available to certain farmers and ranchers.

“A conservation easement donation, for some ANCs, is an attractive way to monetize their lands by protecting wildlife, timber, flora, and general recreational availability while retaining underlying ownership of their lands,” said Congressman Don Young. “ANCs generally pay federal corporate taxes at the highest marginal rate, but are not able to take advantage of the many corporate tax credits available to other corporations. In order to ensure the tax code for ANCs is in line with other non-Alaska Native corporations who donate conservation easements, I believe this is the right thing to do. This change will further the spirit of ANCSA by allowing ANCSA Native Corporations to maximize the economic, cultural, and conservation values of their land.”

This language was accepted as part of H.R. 4719, which passed the House today by a margin of 277-130.

H.R. 4719, the American Gives More Act of 2014, included the following tax bills:

  • The Fighting Hunger Incentive Act – would make permanent the tax deduction for charitable contributions of food inventory by farmers, restaurants and grocery stores;
  • 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;
  • he Permanent IRA Contribution Act – would allow seniors to contribute annually from their Individual Retirement Account (IRA) to charitable organizations without a tax penalty;
  • The Charitable Giving Extension Act – would encourage increased charitable giving by allowing taxpayers to claim dedications until April 15th of the following year;
  • The Private 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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