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    Tax reform's effects on land trusts

    Posted 2017
    Source
    Land Trust Alliance
    Author
    Lori Faeth
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    About This Document

    This week, Congress sent President Trump the finalized Tax Cuts and Jobs Act, a bill that makes sweeping changes to the U.S. tax code. As I've reported to you before, these changes are likely to affect charitable organizations including land trusts.

    Lori Faeth is government relations director for the Land Trust Alliance.

    © 2026 Land Trust Alliance, Inc. All rights reserved.

    Disclaimer

    These resources are provided "as is" for informational purposes only, without warranty of any kind. They do not constitute legal or professional advice and do not create an attorney-client relationship. They may not reflect current legal developments and should be adapted for your organization with qualified professional help. The Alliance is not liable for any damages arising from use of or reliance on these resources. Views in individual posts and third-party links/logos are not Alliance endorsements. The Alliance is committed to equal opportunity and does not condone unlawful discrimination.

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    This week, Congress sent President Trump the finalized Tax Cuts and Jobs Act, a bill that makes sweeping changes to the U.S. tax code. As I've reported to you before, these changes are likely to affect charitable organizations including land trusts.

    First, I'm happy to say that "no news is good news" when it comes to two of our priorities. The conservation easement tax incentive remains in place and will continue to be an important tool for land conservation. Additionally, the so-called Johnson Amendment remains intact. This legal provision that keeps nonprofits nonpartisan was at risk during bill negotiations. But the provision stands — for now. There is some concern that another attempt to repeal the Johnson Amendment may emerge as part of the appropriations process, so we'll continue to keep an eye on things.

    Second, I'll note the most relevant change this bill brings us was expected. The Tax Cuts and Jobs Act doubles the standard deduction. Experts predict this will have consequences on charitable giving because by doubling the standard deduction, fewer people will itemize their deductions. (You can learn more here.) That could have a huge impact on charitable giving because taxpayers who itemize and currently receive a deduction might no longer be eligible for that incentive. Without that tax incentive, it is possible that charitable donations will decline. As a community, we will need to adapt.

    It will take some time for the IRS to analyze and implement the bill that Trump is expected to sign into law. We do know today that the majority of the bill's provisions kick in after the New Year, though many of the individual tax cuts, including the standard deduction's doubling, are scheduled to sunset after 2025.

    As your eyes and ears on Capitol Hill, the Land Trust Alliance will continue to monitor the process and engage when and where it makes sense to do so on your behalf. In the meantime, enjoy your holidays and rest up for what will likely be a busy 2018!