A new law targeting syndicated conservation easements was included in the huge $1.7 trillion omnibus spending bill just passed by Congress. It takes aim at the proliferation of the deals, heavily promoted to dentists, promising the opportunity to make more money from tax breaks for conservation easements than they invested.

In a traditional conservation easement, a landowner makes a permanent binding restriction on the use of the land in the form of a deed restriction, which is donated to a non-profit land trust. The restriction, such as a pledge to never build homes or develop the property, diminishes the value of the property. The subsequent decline in value can be considered a charitable contribution eligible for a federal income tax deduction.

A syndicated conservation easement is similar, but the property is typically purchased by a deal promoter through a newly-formed partnership. The