Capital Gains Easement Act of 2013

Capital Gains Easement Act of 2013 - Amends the Internal Revenue Code to exclude from gross income, for income tax purposes, any gain from the sale or grant of a qualified real property interest to a tax-exempt organization made exclusively for conservation purposes. Defines "qualified real property interest" as any interest in real property which is: (1) the entire interest of the taxpayer, (2) a remainder interest, or (3) a restriction (granted in perpetuity) on the use which may be made of the real property. Exempts such a sale or grant of a qualified real property interest from the application of estate tax property valuation rules.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2713 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2713

To amend the Internal Revenue Code of 1986 to exclude from gross income 
gain from the sale or grant of conservation easements and to allow the 
  sale or grant of conservation easements in the case of the special 
  estate tax valuation provisions for certain farm and other trade or 
                        business real property.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2013

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

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
gain from the sale or grant of conservation easements and to allow the 
  sale or grant of conservation easements in the case of the special 
  estate tax valuation provisions for certain farm and other trade or 
                        business real property.

    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 ``Capital Gains Easement Act of 
2013''.

SEC. 2. EXCLUSION OF GAIN FROM SALE OR GRANT FOR REAL PROPERTY 
              CONSERVATION PURPOSES.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting before section 
140 the following new section:

``SEC. 139E. GAIN FROM SALE OR GRANT FOR CONSERVATION PURPOSES.

    ``(a) In General.--Gross income shall not include any gain from the 
sale or grant of a qualified real property interest to a qualified 
organization exclusively for conservation purposes.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified real property interest.--
                    ``(A) In general.--The term `qualified real 
                property interest' means any of the following interests 
                in real property:
                            ``(i) The entire interest of the taxpayer.
                            ``(ii) A remainder interest.
                            ``(iii) A restriction (granted in 
                        perpetuity) on the use which may be made of the 
                        real property.
                    ``(B) Special rule for mineral interests.--An 
                interest in real property shall not fail to be treated 
                as a qualified real property interest solely by reason 
                of a retention of a qualified mineral interest.
            ``(2) Qualified organization; conservation purposes.--The 
        terms `qualified organization' and `conservation purpose' shall 
        have the respective meanings given such terms by section 
        170(h).''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting before 
the item relating to section 140 the following new item:

``Sec. 139E. Gain from sale or grant of conservation easement.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. SALE OF CONSERVATION EASEMENT NOT A DISPOSITION FOR PURPOSES OF 
              SPECIAL ESTATE TAX REAL ESTATE VALUATION RULES.

    (a) In General.--Paragraph (8) of section 2032A(c) of the Internal 
Revenue Code of 1986 is amended by inserting ``or a sale or grant to 
which section 139E applies'' after ``by gift or otherwise''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales or grants after the date of the enactment of this Act.
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