[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4136 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4136

To amend the Internal Revenue Code of 1986 to provide a credit against 
income tax for certain charitable conservation contributions of land by 
          small farmers and ranchers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 30, 2000

  Mr. Hefley 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 a credit against 
income tax for certain charitable conservation contributions of land by 
          small farmers and ranchers, 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.

    This Act may be cited as the ``Private Land Conservation Tax Act''.

SEC. 2. CREDIT FOR CERTAIN CHARITABLE CONSERVATION CONTRIBUTIONS OF 
              LAND BY SMALL FARMERS AND RANCHERS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by adding at the end the following:

``SEC. 30B. PRIVATE LAND CONSERVATION.

    ``(a) Allowance of Credit.--In the case of an eligible farmer or 
rancher, there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to 10 percent of the 
amount which would (but for subsection (d)(2)) be allowed for such year 
as a deduction under section 170 for a qualified conservation 
contribution (as defined in section 170(h)).
    ``(b) Limitations.--
            ``(1) Maximum credit.--
                    ``(A) In general.--The credit allowed by subsection 
                (a) for any taxable year shall not exceed the excess 
                (if any) of--
                            ``(i) $360,000, over
                            ``(ii) the aggregate amount allowed by 
                        subsection (a) (determined without regard to 
                        subsection (e)) to the taxpayer for the 15 
                        prior taxable years.
                    ``(B) Special rule for joint returns.--The amount 
                of the credit under subsection (a) on a joint return 
                for any taxable year shall be allocated equally between 
                the spouses for purposes of applying the limitation 
                under subparagraph (A) for succeeding taxable years.
                    ``(C) Aggregation rule.--For purposes of this 
                paragraph, all members of the same controlled group of 
                corporations (within the meaning of section 267(f)), 
                and all persons under common control (within the 
                meaning of section 52(b)) but treating an interest of 
                more than 20 percent as a controlling interest), shall 
                be treated as 1 taxpayer.
            ``(2) Limitation based on amount of tax.--The credit 
        allowed by subsection (a) for any taxable year shall not exceed 
        the excess (if any) of--
                    ``(A) the regular tax for the taxable year reduced 
                by the sum of the credits allowable under subpart A and 
                the preceding sections of this subpart, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
    ``(c) Eligible Farmer or Rancher.--For purposes of this section, 
the term `eligible farmer or rancher' means--
            ``(1) in the case of an individual, a taxpayer whose gross 
        income from farming (as defined in section 464(e)(1)) is 60 
        percent or more of the taxpayer's gross income for the taxable 
        year; and
            ``(2) in the case of a C corporation--
                    ``(A) the gross income of the corporation from 
                farming (as so defined) is 60 percent or more of the 
                corporation's gross income for the taxable year;
                    ``(B) the stock of the corporation is not publicly 
                traded on a recognized exchange; and
                    ``(C) the fair market value of the assets of the 
                corporation used in farming does not exceed 
                $20,000,000.
    ``(d) Special Rules.--
            ``(1) Election.--This section shall apply to a taxpayer for 
        the taxable year only if the taxpayer elects its application 
        for such year. Such an election, once made, shall be 
        irrevocable.
            ``(2) Application with section 170.--No deduction shall be 
        allowed under section 170 for a qualified conservation 
        contribution (as defined in section 170(h)) to a taxpayer who 
        elects to take the credit allowed by subsection (a) for a 
        qualified conservation contribution during the 15-taxable-year 
        period described in subsection (b)(1)(A)(ii).
    ``(e) Carryforward of Excess Credit.--If the credit allowable under 
subsection (a) for any taxable year exceeds the amount of the 
limitation imposed by subsection (b)(2) for such taxable year, such 
excess shall be carried to the succeeding taxable year and added to the 
credit allowable under subsection (a) for such succeeding taxable 
year.''
    (b) Conforming Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following:

                              ``Sec. 30B. Private land conservation.''
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to donations of qualified conservation contributions 
(as defined in section 170(h) of the Internal Revenue Code of 1986) 
made after the date of the enactment of this Act.

SEC. 3. INCREASE IN CHARITABLE CONTRIBUTION LIMIT FOR FARMERS AND 
              RANCHERS DOING BUSINESS IN CORPORATE FORM.

    (a) In General.--Section 170(b)(1) of the Internal Revenue Code of 
1986 (relating to corporations) is amended by redesignating 
subparagraph (F) as subparagraph (G) and by inserting after 
subparagraph (E) the following:
                    ``(F) Certain farmers and ranchers.--A qualified 
                farmer or rancher (as defined in section 30B(d)) shall 
                be treated as an individual for purposes of this 
                section with respect to any qualified conservation 
                contribution.''
    (b) Conforming Amendment.--Section 170(b)(2) of such Code is 
amended by striking ``corporation,'' and inserting ``corporation (other 
than a corporation that is an eligible farmer or rancher as defined in 
section 30B(d) with respect to a qualified conservation 
contribution),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 4. EXPANSION OF ESTATE TAX EXCLUSION FOR LAND SUBJECT TO QUALIFIED 
              CONSERVATION EASEMENT.

    (a) In General.--Subparagraph (A) of section 2031(c)(8) of the 
Internal Revenue Code of 1986 is amended by striking clause (i) and by 
redesignating clauses (ii) and (iii) as clauses (i) and (ii), 
respectively.
    (b) Effective Date.--The amendment made by this section shall apply 
to estates of decedents dying after the date of the enactment of this 
Act.
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