Conservation Tax Incentive Act of 2001

Conservation Tax Incentive Act of 2001 - Amends the Internal Revenue Code to exclude from gross income 50 percent of any gain from the sale of land or an interest in land or water to an eligible entity if: (1) such land or interest in land or water was owned by the taxpayer or a member of the taxpayer's family at all times during the 3-year period ending on the date of the sale; and (2) such land or interest in land or water is being acquired by an eligible conservation entity which provides the taxpayer, at the time of acquisition, a written letter of intent stating that the purchaser's intent in making the acquisition will serve specified conservation purposes.

Revises the definition of land subject to a qualified conservation easement to mean land located in the United States or any U.S. possession for purposes of expanding the estate tax exclusion for such land.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 960 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 960

To amend the Internal Revenue Code of 1986 to expand the incentives for 
   transferring land or easements therein for conservation purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 2001

  Mr. Kolbe introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to expand the incentives for 
   transferring land or easements therein for conservation purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Conservation Tax Incentive Act of 
2001''.

SEC. 2. EXCLUSION OF 50 PERCENT OF GAIN ON SALES OF LAND OR INTERESTS 
              IN LAND OR WATER TO ELIGIBLE ENTITIES FOR CONSERVATION 
              PURPOSES.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 121 the 
following new section:

``SEC. 121A. 50-PERCENT EXCLUSION OF GAIN ON SALES OF LAND OR INTERESTS 
              IN LAND OR WATER TO ELIGIBLE ENTITIES FOR CONSERVATION 
              PURPOSES.

    ``(a) Exclusion.--Gross income shall not include 50 percent of any 
gain from the sale of land or an interest in land or water (determined 
without regard to any improvements) to an eligible entity if--
            ``(1) such land or interest in land or water was owned by 
        the taxpayer or a member of the taxpayer's family (as defined 
        in section 2032A(e)(2)) at all times during the 3-year period 
        ending on the date of the sale, and
            ``(2) such land or interest in land or water is being 
        acquired by an eligible entity which provides the taxpayer, at 
        the time of acquisition, a written letter of intent which shall 
        include the following statement: `The purchaser's intent is 
        that this acquisition will serve 1 or more of the conservation 
        purposes specified in clause (i), (ii), or (iii) of section 
        170(h)(4)(A).'
    ``(b) Eligible Entity.--For purposes of this section, the term 
`eligible entity' means--
            ``(1) any agency of the United States or of any State or 
        local government, or
            ``(2) any other organization that--
                    ``(A) is organized and at all times operated 
                principally for 1 or more of the conservation purposes 
                specified in clause (i), (ii), or (iii) of section 
                170(h)(4)(A), and
                    ``(B) is described in section 170(h)(3).
    ``(c) Stock in Holding Corporations.--For purposes of this section, 
the term `land or an interest in land or water' shall include stock in 
any corporation, if the fair market value of the corporation's land or 
interests in land or water equals or exceeds 90 percent of the fair 
market value of all of such corporation's assets at all times during 
the 3-year period ending on the date of the sale.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 121 the following new item:

                              ``Sec. 121A. 50-percent exclusion of gain 
                                        on sales of land or interests 
                                        in land or water to eligible 
                                        entities for conservation 
                                        purposes.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales occurring on or after December 31, 2003.

SEC. 3. EXPANSION OF ESTATE TAX EXCLUSION FOR REAL PROPERTY SUBJECT TO 
              QUALIFIED CONSERVATION EASEMENT.

    (a) Repeal of Certain Restrictions on Where Land Is Located.--
Clause (i) of section 2031(c)(8)(A) of the Internal Revenue Code of 
1986 (defining land subject to a qualified conservation easement) is 
amended to read as follows:
                            ``(i) which is located in the United States 
                        or any possession of the United States,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to estates of decedents dying after December 31, 2001.
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