Sponsor
James R. Walkinshaw
Representative · D-VA
Representative · D-VA
The bill makes donating land for National Scenic Trails more attractive by creating a valuable tax credit and study requirement, but it risks sizable federal revenue loss, potential inequities for low‑income donors, reduced flexibility compared with existing deductions, and greater administrative complexity.
Landowners and donors of trail corridor land can reduce federal income tax liability by claiming a tax credit equal to the fair market value of qualifying contributions, increasing incentives to donate land for National Scenic Trails.
Donations that generate income for businesses can be claimed as a business credit, making it easier for small-business owners to donate income-producing property to support trail conservation.
The credit makes trail corridors eligible for conservation incentives, encouraging protection and extension of National Scenic Trails and preserving recreational access and natural landscapes for rural communities and outdoor users.
Taxpayers and the federal budget risk larger-than-expected revenue losses because valuing donated land by its 'highest and best use' and excluding the qualified mineral interest limitation can inflate credit amounts and expand the credit's cost.
Low-income donors and taxpayers with little or no tax liability may get no immediate benefit because the credit is nonrefundable.
Claiming the new credit disallows the section 170 charitable deduction for the same contribution, reducing flexibility and potentially lowering the overall tax advantage for some donors and nonprofits.
Based on analysis of 2 sections of legislative text.
Creates a nonrefundable federal tax credit equal to fair market value for qualifying National Scenic Trail conservation contributions, with a 10-year carryforward and a required Interior/Treasury study.
Official title: To amend the Internal Revenue Code of 1986 to allow a credit against income tax for qualified conservation contributions which include National Scenic Trails.
Introduced June 4, 2026 by James R. Walkinshaw · Last progress June 4, 2026
Creates a new nonrefundable federal income tax credit equal to the fair market value of a donated “National Scenic Trail conservation contribution” when the donor elects the credit instead of a charitable deduction. The credit applies to donations of National Scenic Trails (or portions) and their trail corridors, uses section 170(h) rules for qualified conservation contributions (with a narrow exception for mineral interests), treats business-use property credits as business tax credits and personal credits for other donations, and allows unused credits to carry forward up to 10 years. The Interior Department, with Treasury consultation, must study the credit and report to Congress within four years on its effectiveness and the feasibility/cost of making the credit refundable or transferable. The credit applies to contributions made after enactment.