Wetlands Conservation Investment Act of 2011 - Amends the Internal Revenue Code to treat gain or loss from the sale or exchange of a mitigation bank credit by the sponsor of the mitigation bank (i.e., the wetland, stream, or other aquatic resource area that has been restored, established, enhanced, or preserved for the purpose of providing compensation for unavoidable impacts to aquatic resources) who earned such credit as the sale or exchange of a capital asset held for more than one year (thus allowing preferential tax treatment of such gain or loss). Exempts from tax withholding requirements any gain from sales of mitigation bank credits.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2058 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2058
To amend the Internal Revenue Code of 1986 to clarify the capital gain
or loss treatment of the sale or exchange of mitigation credits earned
by restoring wetlands, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 31, 2011
Mr. Boustany 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 clarify the capital gain
or loss treatment of the sale or exchange of mitigation credits earned
by restoring wetlands, and for other 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 ``Wetlands Conservation Investment Act
of 2011''.
SEC. 2. CLARIFICATION OF TREATMENT OF SALES OR EXCHANGES OF WETLAND
MITIGATION CREDITS AS LONG-TERM CAPITAL GAIN OR LOSS.
(a) In General.--Part IV of subchapter P of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
1257 the following new section:
``SEC. 1257A. GAINS OR LOSSES FROM SALES OR EXCHANGES OF WETLANDS
MITIGATION CREDITS.
``(a) General Rule.--Gain or loss attributable to the sale or
exchange of a mitigation bank credit by the sponsor of the mitigation
bank who earned such credit shall be considered the sale or exchange of
a capital asset held for more than 1 year.
``(b) Definitions.--For purposes of this section, the terms
`mitigation bank' and `mitigation bank credit' have the respective
meanings given such terms by part 332 of title 33 of the Code of
Federal Regulations.''.
(b) Clerical Amendment.--The table of sections for part IV of
subchapter P of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to section 1257 the
following new item:
``Sec. 1257A. Gains or losses from sales or exchanges of wetlands
mitigation credits.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to sales or exchanges of mitigation bank credits
occurring before, on, or after the date of enactment of this Act.
SEC. 3. EXEMPTION OF WETLAND MITIGATION CREDIT SALES FROM FIRPTA.
(a) In General.--Section 897(c)(6) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(D) Exemption of wetland mitigation credit
sales.--The term `United States real property interest'
does not include any mitigation bank credit (as defined
in part 332 of title 33 of the Code of Federal
Regulations).''.
(b) Conforming Amendment.--Section 897(c)(1)(A) of the Internal
Revenue Code of 1986 is amended by inserting ``and paragraph (6)(C)''
after ``subparagraph (B)''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to sales or exchanges of mitigation bank credits
occurring before, on, or after the date of enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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