[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2880 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2880

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 15, 1999

Mr. Portman (for himself, Mr. Matsui, Mrs. Johnson of Connecticut, and 
 Mr. Tanner) 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 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 
1999''.

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 which provides the taxpayer, at 
        the time of acquisition, a written letter of intent which shall 
        include the following statement: `The purchaser's intent is 
        that this acquisition will serve 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), and
                    ``(B) is described in section 170(h)(3).
    ``(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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