[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1181 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1181

   To amend the Internal Revenue Code of 1986 to provide Federal tax 
 incentives to owners of environmentally sensitive lands to enter into 
    conservation easements for the protection of endangered species 
habitat, to allow a deduction from the gross estate of a decedent in an 
  amount equal to the value of real property subject to an endangered 
        species conservation agreement, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 16, 1997

Mr. Kempthorne introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to provide Federal tax 
 incentives to owners of environmentally sensitive lands to enter into 
    conservation easements for the protection of endangered species 
habitat, to allow a deduction from the gross estate of a decedent in an 
  amount equal to the value of real property subject to an endangered 
        species conservation agreement, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Endangered Species 
Habitat Protection Act of 1997''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Nonrefundable credit for the agreement to manage land to 
                            preserve endangered species.
Sec. 4. Enhanced deduction for the donation of a conservation easement.
Sec. 5. Additional deduction for certain State and local real property 
                            taxes imposed with respect to property 
                            subject to an endangered species 
                            conservation agreement.
Sec. 6. Exclusion from estate for real property subject to endangered 
                            species conservation agreement.
Sec. 7. Exclusion of 75 percent of gain on sales of land to certain 
                            persons for the protection of habitat.
Sec. 8. Right to compensation.

SEC. 2. FINDINGS.

    The Senate finds and declares the following:
            (1) The majority of American property owners recognize the 
        importance of protecting the environment, including the 
        habitats upon which endangered and threatened species depend.
            (2) Current Federal tax laws discourage placement of 
        privately held lands into endangered and threatened species 
        conservation agreements.
            (3) The Federal Government should assist landowners in the 
        goal of conserving endangered and threatened species and their 
        habitat.
            (4) If the environment is to be protected and preserved, 
        existing Federal tax laws must be modified or changed to 
        provide tax incentives to landowners to attain the goal of 
        conservation of endangered and threatened species and the 
        habitats on which they depend.

SEC. 3. NONREFUNDABLE CREDIT FOR THE AGREEMENT TO MANAGE LAND TO 
              PRESERVE ENDANGERED SPECIES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25A the 
following new section:

``SEC. 25B. CREDIT FOR AGREEMENT TO MANAGE LAND TO PRESERVE ENDANGERED 
              SPECIES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the lesser of--
            ``(1) the applicable acreage rate of the qualified acreage, 
        or
            ``(2) $50,000.
    ``(b) Applicable Acreage Rate.--For purposes of subsection (a), the 
applicable acreage rate is the rate established by the Secretary of the 
Interior for the taxable year utilizing rates comparable to rental 
payments under the conservation reserve program under section 1234 of 
the Food Security Act of 1985 (16 U.S.C. 3834).
    ``(c) Qualified Acreage.--For purposes of this section, the term 
`qualified acreage' means any acreage--
            ``(1) which is subject to an endangered species 
        conservation agreement under the Endangered Species Act (16 
        U.S.C. 1531 et seq.) and accepted into the expanded 
        conservation reserve program pursuant to section 1231(d)(2) of 
        the Food Security Act of 1985 (16 U.S.C. 3831(d)(2)),
            ``(2) which is owned by one or more individuals directly or 
        indirectly through a partnership or S corporation that is held 
        entirely by individuals, and
            ``(3) subject to a perpetual restriction that is valued 
        pursuant to section 170(h)(7).
    ``(d) Credit Recapture.--If, during the period of the endangered 
species conservation agreement, the taxpayer transfers the qualified 
acreage without also transferring the taxpayer's obligations under the 
expanded conservation reserve program under subchapter B of chapter 1 
of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) 
and the endangered species conservation agreement, then the taxpayer's 
tax under this chapter for the taxable year shall be increased by the 
amount of the credit received under this section during all prior years 
by such taxpayer, plus interest at the overpayment rate established 
under section 6621 on such amount for each prior taxable year for the 
period beginning on the due date for filing the return for the prior 
taxable year involved. No deduction shall be allowed under this chapter 
for interest described in the preceding sentence, and any increase in 
tax under the preceding sentence shall not be treated as a tax imposed 
by this chapter for purposes of determining the amount of any credit 
under subpart A, B, D, or G of this part.
    ``(e) Joint Owners.--For purposes of this section, the amount of 
credit under this section that any joint owner is entitled to 
constitutes the total credit allowable under this section with respect 
to the qualified acreage multiplied by the individual's percentage 
ownership in the qualified acreage. Each joint owner shall include on 
the return of tax in which the credit is claimed the names and taxpayer 
identification numbers of all other joint owners in the property.
    ``(f) Regulatory Authority.--
            ``(1) Treasury department.--The Secretary shall promulgate 
        regulations to ensure that a taxpayer cannot subdivide property 
        to determine such taxpayer's qualified acreage unless all of 
        the acreage such taxpayer owns within a significant region is 
        submitted to the expanded conservation reserve program, whether 
        or not such acreage is eligible for a credit under this 
        section.
            ``(2) Secretary of the interior.--As necessary, the 
        Secretary of the Interior shall determine the applicable 
        acreage rate for regions within the United States based on 
        rates comparable to those under the expanded conservation 
        reserve program. Once a rate is prescribed under an endangered 
        species conservation agreement, however, such rate shall remain 
        in effect for the duration of that agreement.''
    (b) Conforming Amendments.--Subchapter B of chapter 1 of subtitle D 
of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) is amended--
            (1) in section 1231(b)--
                    (A) by striking the period at the end and inserting 
                ``; or''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(5) lands with respect to which the owner or operator and 
        the Secretary of the Interior or the Secretary of Commerce have 
        entered into an endangered species conservation agreement.'';
            (2) in section 1231(d), by striking ``(d)'' and inserting 
        ``(d)(1)'' and by adding at the end the following new 
        paragraph:
    ``(2) The Secretary of the Interior and the Secretary of Commerce 
shall enter into endangered species conservation agreements under this 
section to enroll acreage, in addition to the 38,000,000 acres 
authorized by paragraph (1), into the expanded conservation reserve, 
for which no payment is due under section 3834, totaling 5,000,000 
acres during calendar years 1997 through 2002. In enrolling such acres, 
the Secretary of the Interior and the Secretary of Commerce shall 
reserve 1,000,000 acres for enrollment under this section in calendar 
year 1997.'';
            (3) in section 1232, by adding at the end the following new 
        subsection:
    ``(f) This section shall not apply to owners and operators subject 
to endangered species conservation agreements.'';
            (4) in section 1234, by adding at the end the following new 
        subsection:
    ``(i) This section shall not apply to owners and operators subject 
to endangered species conservation agreements.''; and
            (5) by inserting after section 1234 the following new 
        section:

``SEC. 1234A. NO PAYMENTS TO PROPERTIES FOR WHICH AN INCOME TAX CREDIT 
              OR DEDUCTION IS TAKEN.

    ``The Secretary shall ensure that no payment be made under this 
subchapter to any owner if that owner has indicated an intention to 
claim an income tax credit (under section 25B of the Internal Revenue 
Code of 1986) for participation in this program, or an income tax 
deduction (under section 170(h)(4)(A)(iii) of such Code).''
    (c) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25A the 
following new item:

``Sec. 25B. Credit for agreement to manage land to preserve endangered 
                            species.''
    (d) Effective Dates.--
            (1) Credit.--The amendments made by subsections (a) and (c) 
        shall apply to taxable years beginning after December 31, 1995.
            (2) Conforming amendments.--The amendments made by 
        subsection (b) shall take effect on the date of enactment of 
        the Endangered Species Habitat Protection Act of 1997.

SEC. 4. ENHANCED DEDUCTION FOR THE DONATION OF A CONSERVATION EASEMENT.

    (a) In General.--Subparagraph (A) of section 170(h)(4) of the 
Internal Revenue Code of 1986 (defining conservation purpose) is 
amended by striking ``or'' at the end of clause (iii), by striking the 
period at the end of clause (iv) and inserting ``, or'', and by adding 
at the end the following new clause:
                            ``(v) the protection of a species 
                        designated endangered by the Secretary of the 
                        Interior or the Secretary of Commerce.''
    (b) Enhanced Valuation.--Section 170(h) of the Internal Revenue 
Code of 1986 (defining qualified conservation contribution) is amended 
by adding at the end the following new paragraph:
            ``(7) Enhanced valuation of property with endangered 
        species.--For purposes of this section, the valuation of a 
        perpetual restriction granted to the Secretary of the Interior 
        or the Secretary of Commerce or to a State agency implementing 
        an endangered species program for the purpose described in 
        paragraph (4)(A)(iii) shall be made by comparing the value of 
        the property after the restriction is granted with the value of 
        that same property without either the encumbrance of such 
        restriction or any of the restrictions placed on such property 
        by the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).''
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after the date of the enactment of this 
Act.

SEC. 5. ADDITIONAL DEDUCTION FOR CERTAIN STATE AND LOCAL REAL PROPERTY 
              TAXES IMPOSED WITH RESPECT TO PROPERTY SUBJECT TO AN 
              ENDANGERED SPECIES CONSERVATION AGREEMENT.

    (a) In General.--Section 164 of the Internal Revenue Code of 1986 
(relating to deductions for taxes) is amended by redesignating 
subsection (g) as subsection (h) and by inserting after subsection (f) 
the following new subsection:
    ``(g) Additional Deduction for Certain State and Local Real 
Property Taxes Imposed With Respect to Property Subject to an 
Endangered Species Conservation Agreement.--
            ``(1) General rule.--Except as provided in paragraph (3), 
        in the case of property--
                    ``(A) which, on the last day of the taxable year, 
                is described in section 25B(c)(1), and
                    ``(B) with respect to which no recapture event 
                described in section 25B(d) has occurred, a deduction 
                in the amount determined under paragraph (2) shall be 
                allowed for all State and local real property taxes 
                paid or accrued with respect to such property during 
                such year. The deduction allowed by this subsection 
                shall be in addition to any other deduction allowed by 
                this section.
            ``(2) Amount of additional deduction.--The deduction 
        allowed by this subsection shall equal 25 percent of the amount 
        of State and local real property taxes that are otherwise 
        deductible under this section without regard to this 
        subsection.
            ``(3) Deduction not allowed.--No deduction shall be allowed 
        under this subsection for taxes imposed upon real property--
                    ``(A) with respect to which a credit under section 
                25B is allowable, or
                    ``(B) subject to a perpetual restriction that is 
                valued pursuant to section 170(h)(7).''
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 6. EXCLUSION FROM ESTATE FOR REAL PROPERTY SUBJECT TO ENDANGERED 
              SPECIES CONSERVATION AGREEMENT.

    (a) In General.--Part IV of subchapter A of chapter 11 of the 
Internal Revenue Code of 1986 (relating to taxable estate) is amended 
by adding at the end the following new section:

``SEC. 2057. CERTAIN REAL PROPERTY SUBJECT TO ENDANGERED SPECIES 
              CONSERVATION AGREEMENT.

    ``(a) General Rule.--For purposes of the tax imposed by section 
2001, the value of the taxable estate shall be determined by deducting 
from the value of the gross estate an amount equal to the adjusted 
value of real property included in the gross estate which is subject to 
an endangered species conservation agreement.
    ``(b) Property Subject to an Endangered Species Conservation 
Agreement.--For purposes of this section--
            ``(1) In general.--Real property shall be treated as 
        subject to an endangered species conservation agreement if--
                    ``(A) each person who has an interest in such 
                property (whether or not in possession) has entered 
                into--
                            ``(i) an endangered species conservation 
                        agreement with respect to such property, and
                            ``(ii) a written agreement with the 
                        Secretary consenting to the application of 
                        subsection (d), and
                    ``(B) the executor of the decedent's estate--
                            ``(i) elects the application of this 
                        section, and
                            ``(ii) files with the Secretary such 
                        endangered species conservation agreement.
            ``(2) Adjusted value.--The adjusted value of any real 
        property shall be its value for purposes of this chapter, 
        reduced by any amount deductible under section 2053(a)(4) or 
        2055(f) with respect to the property.
    ``(c) Endangered Species Conservation Agreement.--For purposes of 
this section--
            ``(1) In general.--The term `endangered species 
        conservation agreement' means a written agreement entered into 
        with the Secretary of the Interior or the Secretary of 
        Commerce--
                    ``(A) which commits each person who signed such 
                agreement to carry out on the real property activities 
                or practices not otherwise required by law or to 
                refrain from carrying out on such property activities 
                or practices that could otherwise be lawfully carried 
                out,
                    ``(B) which is certified by such Secretary as 
                assisting in the conservation of any species which is--
                            ``(i) designated by such Secretary as an 
                        endangered or threatened species under the 
                        Endangered Species Act of 1973 (16 U.S.C. 1531 
                        et seq.),
                            ``(ii) proposed for such designation, or
                            ``(iii) officially identified by such 
                        Secretary as a candidate for possible future 
                        protection as an endangered or threatened 
                        species, and
                    ``(C) which applies to at least one-half of the 
                total area of the property.
            ``(2) Annual certification to the secretary by the 
        secretary of the interior or the secretary of commerce of the 
        status of endangered species conservation agreements.--If the 
        executor elects the application of this section, the executor 
        shall promptly give written notice of such election to the 
        Secretary of the Interior or the Secretary of Commerce. The 
        Secretary of the Interior or the Secretary of Commerce shall 
        thereafter annually certify to the Secretary that the 
        endangered species conservation agreement applicable to any 
        property for which such election has been made remains in 
        effect and is being satisfactorily complied with.
    ``(d) Recapture of Tax Benefit in Certain Cases.--
            ``(1) Disposition of interest or material breach.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), an additional tax in the amount 
                determined under subparagraph (B) shall be imposed on 
                any person on the earlier of--
                            ``(i) the disposition by such person of any 
                        interest in property subject to an endangered 
                        species conservation agreement (other than a 
                        disposition described in subparagraph (C)),
                            ``(ii) the failure by such person to comply 
                        with the terms of the endangered species 
                        conservation agreement, or
                            ``(iii) the termination of the endangered 
                        species conservation agreement.
                    ``(B) Amount of additional tax.--The amount of the 
                additional tax imposed by subparagraph (A) shall be an 
                amount that bears the same ratio to the fair market 
                value of the real property at the time of the event 
                described in subparagraph (A) as the ratio of the 
                amount by which the estate tax liability was reduced by 
                virtue of this section bore to the fair market value of 
                such property at the time the executor filed the 
                agreement under subsection (b)(1). For purposes of this 
                subparagraph, the term `estate tax liability' means the 
                tax imposed by section 2001 reduced by the credits 
                allowable against such tax.
                    ``(C) Exception if transferee assumes obligations 
                of transferor.--Subparagraph (A)(i) shall not apply if 
                the transferor and the transferee of the property enter 
                into a written agreement pursuant to which the 
                transferee agrees--
                            ``(i) to assume the obligations imposed on 
                        the transferor under the endangered species 
                        conservation agreement,
                            ``(ii) to assume personal liability for any 
                        tax imposed under subparagraph (A) with respect 
                        to any future event described in subparagraph 
                        (A), and
                            ``(iii) to notify the Secretary of the 
                        Treasury and the Secretary of the Interior or 
                        the Secretary of Commerce that the transferee 
                        has assumed such obligations and liability.
                If a transferee enters into an agreement described in 
                clauses (i), (ii), and (iii), such transferee shall be 
                treated as signatory to the endangered species 
                conservation agreement the transferor entered into.
            ``(2) Due date of additional tax.--The additional tax 
        imposed by paragraph (1) shall become due and payable on the 
        day that is 6 months after the date of the disposition referred 
        to in paragraph (1)(A)(i) or, in the case of an event described 
        in clause (ii) or (iii) of paragraph (1)(A), on April 15 of the 
        calendar year following any year in which the Secretary of the 
        Interior or the Secretary of Commerce fails to provide the 
        certification required under subsection (c)(2).
    ``(e) Statute of Limitations.--If a taxpayer incurs a tax liability 
pursuant to subsection (d)(1)(A), then--
            ``(1) the statutory period for the assessment of any 
        additional tax imposed by subsection (d)(1)(A) shall not expire 
        before the expiration of 3 years from the date the Secretary is 
        notified (in such manner as the Secretary may by regulation 
        prescribe) of the incurring of such tax liability, and
            ``(2) such additional tax may be assessed before the 
        expiration of such 3-year period notwithstanding the provisions 
        of any other law or rule of law that would otherwise prevent 
        such assessment.
    ``(f) Election and Filing of Agreement.--The election under this 
section shall be made on the return of the tax imposed by section 2001. 
Such election, and the filing under subsection (a) of an endangered 
species conservation agreement, shall be made in such manner as the 
Secretary shall by regulation provide.
    ``(g) Application of This Section to Interests in Partnerships, 
Corporations, and Trusts.--The Secretary shall prescribe regulations 
setting forth the application of this section in the case of an 
interest in a partnership, corporation, or trust which, with respect to 
a decedent, is an interest in a closely held business (within the 
meaning of paragraph (1) of section 6166(b)). For purposes of the 
preceding sentence, an interest in a discretionary trust all the 
beneficiaries of which are heirs of the decedent shall be treated as a 
present interest.''
    (b) Carryover Basis.--Section 1014(a)(4) of the Internal Revenue 
Code of 1986 (relating to basis of property acquired from a decedent) 
is amended by inserting ``or 2057'' after ``section 2031(c)''.
    (c) Clerical Amendment.--The table of sections for part IV of 
subchapter A of chapter 11 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item:

                              ``Sec. 2057. Certain real property 
                                        subject to endangered species 
                                        conservation agreement.''
    (d) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after the date of the enactment of 
this Act.

SEC. 7. EXCLUSION OF 75 PERCENT OF GAIN ON SALES OF LAND TO CERTAIN 
              PERSONS FOR THE PROTECTION OF HABITAT.

    (a) In General.--Part I of subchapter P of chapter 1 of the 
Internal Revenue Code of 1986 (relating to treatment of capital gains) 
is amended by adding at the end the following new section:

``SEC. 1203. 75 PERCENT EXCLUSION FOR GAIN ON SALES OF LAND TO CERTAIN 
              PERSONS FOR THE PROTECTION OF HABITAT.

    ``(a) Exclusion.--Gross income shall not include 75 percent of any 
gain from the sale of any land to a conservation purchaser if--
            ``(1) such land 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 is being acquired by a conservation 
        purchaser for the purpose of protecting the habitat of any 
        species listed by the Secretary of the Interior or the 
        Secretary of Commerce under the Endangered Species Act as 
        endangered or threatened, proposed for listing as endangered or 
        threatened, or which is a candidate for such listing.
    ``(b) Conservation Purchaser.--For purposes of this section--
            ``(1) Conservation purchaser.--The term `conservation 
        purchaser' means--
                    ``(A) any agency of the United States or of any 
                State or local government, and
                    ``(B) any qualified organization.
            ``(2) Qualified organization.--The term `qualified 
        organization' has the meaning given such term by section 
170(h)(3) (determined without regard to section 170(b)(1)(A)(v)).''
    (b) Clerical Amendment.--The table of sections for part I of 
subchapter P of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item:

``Sec. 1203. 75-percent exclusion for gain on sales of land to certain 
                            persons for the protection of habitat.''
    (c) Effective Date.--The amendments made by this section shall 
apply to sales after December 31, 1997.

SEC. 8. RIGHT TO COMPENSATION.

    (a) Prohibition.--No agency action affecting privately owned 
property under this section shall result in the diminishment of the 
value of any portion of that property by 30 percent or more unless 
compensation is offered in accordance with this section.
    (b) Compensation for Diminishment.--Any agency that takes an action 
the economic impact of which exceeds the amount provided in subsection 
(a)--
            (1) shall compensate the property owner for the diminution 
        in value of the portion of that property resulting from the 
        action; or
            (2) if the diminution in value of a portion of that 
        property is greater than 50 percent, at the option of the 
        owner, such agency shall buy that portion of the property and 
        shall pay fair market value based on the value of the property 
        before the diminution.
    (c) Request of Owner.--A property owner seeking compensation under 
this section shall make a written request for compensation to the 
agency whose action would limit the otherwise lawful use of property. 
The request shall, at a minimum, identify the affected portion of the 
property, the nature of the diminution, and the amount of compensation 
claimed.
    (d) Choice of Remedies.--If the parties have not reached an 
agreement on compensation within 180 days after the written request is 
made, the owner may elect binding arbitration through alternative 
dispute resolution or seek compensation due under this section in a 
civil action. The parties may by mutual agreement extend the period of 
negotiation on compensation beyond the 180-day period without loss of 
remedy to the owner under this section. In the event the extension 
period lapses the owner may elect binding arbitration through 
alternative dispute resolution or seek compensation due under this 
section in a civil action.
    (e) Alternative Dispute Resolution.--
            (1) In general.--In the administration of this section--
                    (A) arbitration procedures shall be in accordance 
                with the alternative dispute resolution procedures 
                established by the American Arbitration Association; 
                and
                    (B) in no event shall arbitration be a condition 
                precedent or an administrative procedure to be 
                exhausted before the filing of a civil action under 
                this section.
            (2) Review of arbitration.--
                    (A) Appeal of decision.--Appeal from arbitration 
                decisions shall be to the United States District Court 
                for the district in which the property is located or 
                the United States Court of Federal Claims in the manner 
                prescribed by law for the claim under this section.
                    (B) Rules of enforcement of award.--The provisions 
                of title 9, United States Code (relating to 
                arbitration), shall apply to enforcement of awards 
                rendered under this section.
    (f) Civil Action.--An owner who prevails in a civil action against 
any agency pursuant to this section shall be entitled to, and such 
agency shall be liable for, just compensation, plus reasonable 
attorney's fees and other litigation costs, including appraisal fees.
    (g) Source of Payments.--Any payment made under this section shall 
be paid from the responsible agency's annual appropriation supporting 
the agency's activities giving rise to the claim for compensation. If 
insufficient funds are available to the agency in the fiscal year in 
which the award becomes final the agency shall pay the award from 
appropriations available in the next fiscal year.
    (h) Definitions.--For the purposes of this section--
            (1) the term ``agency'' has the meaning given that term in 
        section 551 of title 5, United States Code;
            (2) the term ``agency action'' means any action or decision 
        taken by any agency that at the time of such action or decision 
        adversely affects private property rights;
            (3) the term ``fair market value'' means the likely price 
        at which property would change hands, in a competitive and open 
        market under all conditions requisite to fair sale, between a 
        willing buyer and willing seller, neither being under any 
        compulsion to buy or sell and both having reasonable knowledge 
        of relevant facts, prior to occurrence of the agency action;
            (4) the term ``just compensation''--
                    (A) means compensation equal to the full extent of 
                a property owner's loss, including the fair market 
                value of the private property taken, whether the taking 
                is by physical occupation or through regulation, 
                exaction, or other means; and
                    (B) shall include compounded interest calculated 
                from the date of the taking until the date the United 
                States tenders payment;
            (5) the term ``owner'' means the owner or possessor of 
        property or rights in property at the time the taking occurs, 
        including when--
                    (A) the statute, regulation, rule, order, 
                guideline, policy, or action is passed or promulgated; 
                or
                    (B) the permit, license, authorization, or 
                governmental permission is denied or suspended;
            (6) the term ``property'' means land, an interest in land, 
        proprietary water rights, and any personal property that is 
        subject to use by the Federal Government or to a restriction on 
        use;
            (7) the term ``private property'' or ``property'' means all 
        interests constituting real property, as defined by Federal or 
        State law, protected under the fifth amendment to the United 
        States Constitution, any applicable Federal or State law, or 
        this section, and more specifically constituting--
                    (A) real property, whether vested or unvested, 
                including--
                            (i) estates in fee, life estates, estates 
                        for years, or otherwise;
                            (ii) inchoate interests in real property 
                        such as remainders and future interests;
                            (iii) personalty that is affixed to or 
                        appurtenant to real property;
                            (iv) easements;
                            (v) leaseholds;
                            (vi) recorded liens; and
                            (vii) contracts or other security interests 
                        in, or related to, real property;
                    (B) the right to use water or the right to receive 
                water, including any recorded liens on such water 
                right; or
                    (C) rents, issues, and profits of land, including 
                minerals, timber, fodder, crops, oil and gas, coal, or 
                geothermal energy.
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