S-4700-119
Read twice and referred to the Committee on Finance.
Sponsored by Richard Blumenthal (D-CT)
What it does
This bill would create a new federal income tax credit equal to the full fair market value of land donated as a conservation easement along any of the 11 National Scenic Trails (such as the Appalachian Trail or Pacific Crest Trail). The credit would apply to donations made after enactment, could be carried forward for up to 10 years if it exceeds the donor's tax liability, and would replace — not supplement — the existing charitable deduction for the same contribution. The bill also directs the Secretary of the Interior to study the credit's effectiveness and report to Congress within four years.
Who benefits
Private landowners (individuals, farmers, ranchers, and businesses) who own property adjacent to or along National Scenic Trails and choose to donate conservation easements. Hikers, outdoor recreationists, and the general public who use or benefit from completed trail corridors. Conservation land trusts and nonprofits that receive easement donations. Rural communities near trail corridors that may see increased tourism and economic activity. Future generations who would benefit from permanently protected open land.
Who is hurt
The federal government would forgo tax revenue equal to the fair market value of donated land, which could be substantial for high-value properties. Landowners who do not own property along designated National Scenic Trails receive no benefit, potentially creating an uneven incentive landscape compared to other conservation programs. Taxpayers broadly may bear the cost of reduced federal revenue. Competing conservation priorities — such as donations near non-scenic-trail lands — may be relatively disadvantaged since this credit is more generous than the standard deduction.
Supporters argue
Supporters argue that the existing charitable deduction for conservation easements is insufficient to motivate donations along National Scenic Trails, where large gaps in public access remain — the Appalachian Trail alone has hundreds of miles still crossing private land. A dollar-for-dollar tax credit, unlike a deduction, provides equal incentive regardless of the donor's marginal tax rate, making it accessible to a broader range of landowners. They contend that completing these nationally designated trails produces durable public benefits — recreation, tourism, and habitat protection — that justify a targeted federal incentive.
Opponents argue
Opponents argue that converting a conservation deduction into a full fair-market-value tax credit creates a mechanism that could be exploited through inflated appraisals, a problem the IRS has repeatedly flagged with syndicated conservation easements. They contend that the credit's value — dollar-for-dollar against tax liability — is significantly more generous than standard conservation incentives and lacks the guardrails needed to prevent abuse, potentially costing the Treasury far more than the public benefit warrants. Critics may also argue that completing trail corridors is a land management priority that should be funded through direct appropriations rather than open-ended tax expenditures.
Constitutional context
Tax bills must originate in the House under the Origination Clause (Art. I, §7, cl. 1); this bill was introduced in the Senate, which could raise a procedural challenge if it advances. The Taxing and Spending Clause (Art. I, §8, cl. 1) gives Congress broad authority to create tax credits for public purposes, and no realization or direct-tax issues are implicated here since the credit offsets income tax on realized income.
Checks and balances
Congress gains authority to direct conservation outcomes through the tax code; the IRS retains enforcement authority over appraisal standards and eligibility; the Secretary of the Interior is directed to evaluate the program and report back, giving Congress an oversight mechanism.
Historical precedent
Congress has previously enhanced conservation easement deductions — most recently in the Protecting Americans from Tax Hikes Act (2015) — but converting the benefit to a full fair-market-value tax credit for a specific trail system has no direct enacted precedent.