H.R. 9168: Complete America’s Great Trails Act

This legislation, known as the Complete America’s Great Trails Act, proposes an amendment to the Internal Revenue Code to create a new tax credit for individuals who make contributions to the conservation of National Scenic Trails. Here’s a breakdown of what the bill entails:

Overview of the Tax Credit

The Act introduces a tax credit that taxpayers can claim against their income tax, equal to the fair market value of their contributions towards the conservation of National Scenic Trails. This aims to incentivize the protection and maintenance of these trails and their environments.

Definition of Contributions

For the purposes of the tax credit, a "National Scenic Trail conservation contribution" is defined as:

• A qualified conservation contribution that includes a National Scenic Trail and its corridor.
• The taxpayer must make an election to receive the credit.

Details on National Scenic Trails

A "National Scenic Trail" refers to any trail designated under the National Trails System Act, which is managed federally to promote conservation and public enjoyment.

Trail Corridor Specifications

The "trail corridor" is defined as the area at least 50 feet wide on either side of the trail, but not exceeding 2,640 feet in total width. There are exceptions where properties closer than 50 feet to the trail may still qualify for the corridor definition.

Special Rules for the Credit

• The fair market value of contributions will be estimated on the basis of the best use of the property.
• The election to claim the credit is irrevocable, meaning once made, it cannot be undone.
• No tax deduction is permitted for contributions for which the credit is claimed, to prevent double benefits.

Use of Property after Contribution

Property owners can still use their land for activities like recreational or agricultural purposes as long as these uses do not harm the conservation objectives of the trails.

Study and Reporting Requirements

The Secretary of the Interior, in consultation with the Secretary of the Treasury, is tasked to study the effectiveness of this tax credit in enhancing and increasing the number of National Scenic Trails. They will also explore the potential for making the credit refundable or transferable. A report on the findings is to be submitted to Congress within four years of the Act’s enactment.

Effective Date

The amendments regarding this credit will take effect for contributions made after the law is enacted.

Relevant Companies

• None found