[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4101 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4101

To amend the Internal Revenue Code of 1986 to exclude from estate taxes 
    the value of certain farmland the use of which is restricted in 
                     perpetuity to use as farmland.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 28, 2000

   Mr. Pitts (for himself, Mr. Boehlert, Mrs. Capps, Mr. Peterson of 
  Pennsylvania, Mr. DeMint, Mr. English, Mr. Goode, Mr. Hoeffel, Mr. 
  Goodling, Mr. Weldon of Pennsylvania, Mr. Gilman, Mr. Tancredo, Mr. 
Ryun of Kansas, Mr. Franks of New Jersey, Mr. Kingston, and Mr. Deal of 
   Georgia) 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 exclude from estate taxes 
    the value of certain farmland the use of which is restricted in 
                     perpetuity to use as farmland.

    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 ``Farmland Preservation Act of 2000''.

SEC. 2. EXCLUSION FROM GROSS ESTATE OF CERTAIN FARMLAND WHICH IS 
              RESTRICTED IN PERPETUITY TO USE AS FARMLAND.

    (a) In General.--Part III of subchapter A of chapter 11 of the 
Internal Revenue Code of 1986 (relating to gross estate) is amended by 
inserting after section 2033 the following new section:

``SEC. 2033A. EXCLUSION OF CERTAIN FARMLAND WHICH IS RESTRICTED IN 
              PERPETUITY TO USE AS FARMLAND.

    ``(a) In General.--In the case of an estate of a decedent to which 
this section applies, the value of the gross estate shall not include 
the adjusted value of qualified farmland included in the estate if 
there is in effect on the date of death a qualified farmland 
conservation easement.
    ``(b) Estates to Which Section Applies.--This section shall apply 
to an estate if--
            ``(1) the decedent was (at the date of the decedent's 
        death) a citizen or resident of the United States, and
            ``(2) during the 8-year period ending on the date of the 
        decedent's death there have been periods aggregating 5 years or 
        more during which--
                    ``(A) the qualified farmland was owned by the 
                decedent or a member of the decedent's family, and
                    ``(B) there was material participation (within the 
                meaning of section 2032A(e)(6)) by the decedent or a 
                member of the decedent's family in the operation of 
                such farmland.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified farmland.--The term `qualified farmland' 
        means any real property--
                    ``(A) which is located in the United States,
                    ``(B) which is used as a farm for farming purposes 
                (within the meaning of section 2032A(e)), and
                    ``(C) which is located in a county which has a 
                population of 100 or more persons per square mile.
            ``(2) Qualified farmland conservation easement.--The term 
        `qualified farmland conservation easement' means a restriction 
        (granted in perpetuity) which does not permit any use of the 
        land for any purpose other than use as a farm for farming 
        purposes (within the meaning of section 2032A(e)).
            ``(3) Adjusted value.--The term `adjusted value' means the 
        value of farmland for purposes of this chapter (determined 
        without regard to this section), reduced by the amount 
        deductible under paragraph (3) or (4) of section 2053(a).
    ``(d) Verification of Easement.--Subsection (a) shall not apply by 
reason of any qualified farmland conservation easement unless the 
executor--
            ``(1) notifies (in such form and manner as the Secretary 
        may by regulations prescribe) both the Secretary and the 
        Secretary of Agriculture of the political subdivision of the 
        State in which such easement is recorded, and
            ``(2) submits to the Secretary a copy of such easement.''
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter A of chapter 11 of such Code is amended by inserting after 
the item relating to section 2033 the following new item:

                              ``Sec. 2033A. Exclusion of certain 
                                        farmland which is restricted in 
                                        perpetuity to use as 
                                        farmland.''
    (c) Effective Date.--The amendments made by this section shall 
apply to restrictions first recorded after December 31, 2000, with 
respect to estates of decedents dying after such date.
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