Ponds and Water-Based Conservation Act of 2009

Ponds and Water-Based Conservation Act of 2009 - Amends the Internal Revenue Code to allow a tax credit for 50% of qualified pond construction expenditures, up to $50,000 in a taxable year. Defines "qualified pond construction expenditures" as amounts, including labor costs, incurred to construct a body of water to promote stormwater management and conservation or foster expansion of water-based habitat for wildlife or fish.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3622 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3622

 To amend the Internal Revenue Code of 1986 to allow a credit for the 
construction of pond establishments for the purposes of non-commercial 
recreational fishing and conservation of water-based wildlife habitats.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 22, 2009

  Mr. Bright 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 the 
construction of pond establishments for the purposes of non-commercial 
recreational fishing and conservation of water-based wildlife habitats.

    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 ``Ponds and Water-Based Conservation 
Act of 2009''.

SEC. 2. POND CONSTRUCTION CREDIT.

    (a) Pond Construction Credit.--Subpart A 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. 25E. POND CONSTRUCTION CREDIT.

    ``(a) Allowance of Credit.--In the case of an individual, 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 qualified pond 
construction expenditures.
    ``(b) Limitations.--The amount allowed as a credit under subsection 
(a) for a taxable year shall not exceed $50,000.
    ``(c) Qualified Pond Construction Expenditures.--For purposes of 
this section--
            ``(1) In general.--The term `qualified pond construction 
        expenditures' means amounts paid or incurred to construct a 
        body of water larger than one-half acre and smaller than 10 
        acres that serves to promote stormwater management and 
        conservation or foster expansion of water-based habitat for 
        wildlife or fish.
            ``(2) Labor costs.--For purposes of paragraph (1), 
        expenditures for labor costs properly allocable to the onsite 
        construction of such body of water shall be taken into account.
            ``(3) Exception for commercial uses.--Such term does not 
        include any amount paid or incurred with respect to commercial 
        fishing.
    ``(d) Recapture of Credit.--
            ``(1) In general.--The Secretary shall provide for the 
        recapture of the credit allowed under this section in any case 
        in which, before the close of the recapture period, the land 
        with respect to which the qualified pond construction 
        expenditures were paid or incurred is disposed of or otherwise 
        ceases to sustain water-based wildlife or fish.
            ``(2) Exceptions.--
                    ``(A) Death of taxpayer.--Paragraph (1) shall not 
                apply to any taxable year ending after the date of the 
                taxpayer's death.
                    ``(B) Involuntary conversion.--Paragraph (1) shall 
                not apply in the case of a property which is 
                compulsorily or involuntarily converted (within the 
                meaning of section 1033(a)).
                    ``(C) Transfers between spouses or incident to 
                divorce.--In the case of a transfer of a property to 
                which section 1041(a) applies--
                            ``(i) paragraph (1) shall not apply to such 
                        transfer, and
                            ``(ii) in the case of taxable years ending 
                        after such transfer, paragraph (1) shall apply 
                        to the transferee in the same manner as if such 
                        transferee were the transferor (and shall not 
                        apply to the transferor).
            ``(3) Recapture period.--For purposes of paragraph (1), the 
        recapture period is the 10-taxable year period beginning with 
        the taxable year after the taxable year for which a credit is 
        allowed under subsection (a).
    ``(e) Certification.--
            ``(1) Year of construction.--No amount shall be treated as 
        a qualified pond construction expenditure unless the taxpayer 
        certifies that the body of water constructed pursuant to such 
        expenditures meets the requirements of subsection (c)(1).
            ``(2) Recapture.--Recapture shall be required under 
        subsection (d) for any year in the recapture period unless the 
        taxpayer certifies that the taxpayer is in compliance with 
        subsection (d).
            ``(3) Certification requirements.--A certification under 
        this subsection shall be in such form and meet such 
        requirements as the Secretary may require.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25D the following new 
item:

``Sec. 25E. Pond construction credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
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