[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2376 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2376

 To amend the Internal Revenue Code of 1986 to provide tax incentives 
               for land sales for conservation purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 30, 1998

 Mr. Jeffords 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 tax incentives 
               for land sales 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 ``Conservation Tax Incentives Act of 
1998''.

SEC. 2. EXCLUSION OF 50 PERCENT OF GAIN ON SALES OF LAND OR INTERESTS 
              IN LAND OR WATER TO ELIGIBLE ENTITIES FOR CONSERVATION 
              PURPOSES.

    (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. 50-PERCENT EXCLUSION OF GAIN ON SALES OF LAND OR INTERESTS 
              IN LAND OR WATER TO ELIGIBLE ENTITIES FOR CONSERVATION 
              PURPOSES.

    ``(a) Exclusion.--Gross income shall not include 50 percent of any 
gain from the sale of land or an interest in land or water (determined 
without regard to any improvements) to an eligible entity if--
            ``(1) such land or interest in land or water 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 or interest in land or water is being 
        acquired by an eligible entity with funds from a program or 
        source established for or consistent with 1 or more of the 
        conservation purposes specified in clause (i), (ii), or (iii) 
        of section 170(h)(4)(A).
    ``(b) Eligible Entity.--For purposes of this section, the term 
`eligible entity' means--
            ``(1) any agency of the United States or of any State or 
        local government, or
            ``(2) any other organization that--
                    ``(A) is organized and at all times operated 
                principally for 1 or more of the conservation purposes 
                specified in clause (i), (ii), or (iii) of section 
                170(h)(4)(A),
                    ``(B) is described in section 501(c)(3) and exempt 
                from tax under section 501(a), and
                    ``(C)(i) meets the requirements of section 
                509(a)(2), or
                    ``(ii) meets the requirements of section 509(a)(3) 
                and is controlled by an organization described in 
                section 509(a)(2).
    ``(c) Stock in Holding Corporations.--For purposes of this section, 
the term `land or an interest in land or water' shall include stock in 
any corporation, if the fair market value of the corporation's land or 
interests in land or water equals or exceeds 90 percent of the fair 
market value of all of such corporation's assets at all times during 
the 3-year period ending on the date of the sale.''
    (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. 50-percent exclusion of gain on sales of land or interests 
                            in land or water to eligible entities for 
                            conservation purposes.''
    (c) Effective Date.--The amendments made by this section shall 
apply to sales occurring on or after the date of enactment of this Act.
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