On August 11, the U.S. Court of Appeals for the Fifth Circuit decided the case of BC Ranch II, LP, et al., v. Commissioner of Internal Revenue, which involved charitable tax deductions based on the creation of conservation easements. After reviewing the record, the Fifth Circuit, in a split decision, disagreed with both the Commissioner and the Tax Court, placing heavy stress on the Internal Revenue Code’s public policy goals:
[T]he hope of adding untold thousands of acres of primarily rural property for various conservation purposes – acreage that would never become available for conservation if land-owning potential donors were limited to the traditional method of conveyance.