Tax Credits for Conservation Act of 2003

Tax Credits for Conservation Act of 2003 - Amends the Internal Revenue Code to allow an annual tax credit of 50 percent of the qualified conservation contributions of qualified U.S. real property interests for specified conservation purposes.

Limits such credit to $100,000 ($50,000 for tax year 2003; $75,000 for tax year 2004).

Allows a limited carryover of unused credit.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1607 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1607

   To amend the Internal Revenue Code of 1986 to allow a credit for 
  contributions of real property interests for conservation purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 3, 2003

  Mr. Goode 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 allow a credit for 
  contributions of real property interests 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 ``Tax Credits for Conservation Act of 
2003''.

SEC. 2. CREDIT FOR CONSERVATION CONTRIBUTIONS OF REAL PROPERTY 
              INTERESTS IN PERPETUITY.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30B. CREDIT FOR CONSERVATION CONTRIBUTIONS OF REAL PROPERTY 
              INTERESTS IN PERPETUITY.

    ``(a) In General.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to 50 
percent of the aggregate qualified conservation contributions in such 
taxable year of qualified real property interests located in the United 
States or any of its possessions for a conservation purpose specified 
in clause (i), (ii), or (iii) of section 170(h)(4)(A).
    ``(b) Limitation.--The amount allowed as a credit under subsection 
(a) for a taxable year shall not exceed $100,000 ($50,000 for taxable 
years beginning in 2003 and $75,000 for taxable years beginning in 
2004).
    ``(c) Definitions.--For purposes of this section, the terms 
`qualified conservation contribution' and `qualified real property 
interest' have the meanings given such terms by section 170(h).
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Carryover of unused credit.--If the credit allowable 
        under subsection (a) for a taxable year exceeds the limitation 
        imposed by subsection (b) for such taxable year, such excess 
        shall be carried over to the succeeding taxable year and added 
        to the credit allowable under subsection (a) for such taxable 
        year. No credit may be carried forward under this subsection to 
        any taxable year following the fifth taxable year after the 
        taxable year in which the credit arose. For purposes of the 
        preceding sentence, credits shall be treated as used on a 
        first-in first-out basis.
            ``(2) Related persons.--
                    ``(A) In general.--The taxpayer and all persons 
                related to the taxpayer shall be treated as one person.
                    ``(B) Related person.--For purposes of subparagraph 
                (A), a person is a related person to another person 
                if--
                            ``(i) the relationship between such persons 
                        would result in a disallowance of losses under 
                        section 267 or 707(b), or
                            ``(ii) such persons are members of the same 
                        controlled group of corporations (as defined in 
                        section 1563(a), except that `more than 50 
                        percent' shall be substituted for `at least 80 
                        percent' each place it appears therein).
            ``(3) Denial of Double Benefit.--In the case of the amount 
        of the credit determined under this section, no deduction shall 
        be allowed for such amount under any other provision of this 
        title.''.
    (b) Conforming Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 30B. Credit for conservation 
                                        contributions of real property 
                                        interests in perpetuity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions after December 31, 2002.
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