Tax credit for trail donations benefits wealthy landowners, costs federal budget
H.R. 9168 — Complete America’s Great Trails Act · Filed by James Walkinshaw (D-VA) · Introduced Jun 4, 2026 · Referred to committee
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What it does
This bill creates a new federal income tax credit equal to the fair market value of land donations that include National Scenic Trails and their corridors. Landowners who donate conservation easements protecting trails can claim the credit against their income taxes, with unused credits carried forward up to 10 years. The bill allows continued recreational and agricultural use of the land without disqualifying the donation, and requires the Interior Department to study whether the credit should be made refundable or transferable.
Why we flagged it
The bill's core mechanism is a tax credit designed to incentivize land conservation for scenic trails—a legitimate public-policy tool. However, the structure concentrates benefits on high-net-worth landowners able to claim large credits, making it a tax expenditure that favors private wealth while pursuing a public conservation goal.
What the text implies
- The credit's value is tied to 'highest and best use' of the property, potentially inflating valuations and tax benefits for land near development pressure—landowners in high-demand areas receive larger credits than those in rural areas.
- No income limit or cap on individual credit size; a single large donation could generate a six- or seven-figure tax credit, concentrating benefits among the wealthiest landowners.
The full analysis lists 5 implications of this text.
Who stands to gain
High-net-worth landowners with trail-adjacent property; Conservation easement intermediaries and land trusts (if credit is later made transferable); Tax advisory and appraisal firms (valuation services for conservation contributions)