[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5336 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5336

To amend the Internal Revenue Code of 1986 to exclude from gross income 
gain on the sale to a governmental unit of land or an easement therein 
                 for open space conservation purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2000

 Mr. Forbes (for himself and Mr. Engel) 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 gross income 
gain on the sale to a governmental unit of land or an easement therein 
                 for open space 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 and Reinvestment Tax-
Incentive Act of 2000''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the Nation's natural resources are vital to the future 
        prosperity of the United States,
            (2) accessible, open space for all Americans to enjoy 
        promotes health and well being of the people,
            (3) accessible, open space for all Americans to enjoy 
        provides educational opportunities,
            (4) many Americans wish to make their land open to all in 
        perpetuity, and
            (5) the taxes incurred on the sale of land can be a 
        disincentive to owners to choose to keep the land undeveloped.

SEC. 3. EXCLUSION OF GAIN FROM SALE OF REAL PROPERTY OR AN EASEMENT 
              THEREIN TO A GOVERNMENTAL UNIT FOR OPEN SPACE 
              CONSERVATION PURPOSES.

    (a) General Rule.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 139 as section 
139A and by inserting after section 138 the following new section:

``SEC. 139. EXCLUSION OF GAIN FROM SALE OF REAL PROPERTY OR AN EASEMENT 
              THEREIN TO A GOVERNMENTAL UNIT FOR OPEN SPACE 
              CONSERVATION PURPOSES.

    ``(a) General Rule.--Gross income does not include gain from the 
sale or exchange to a governmental unit of--
            ``(1) qualified real property subject to a qualified 
        conservation easement, and
            ``(2) a qualified conservation easement.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified conservation purpose.--The term `qualified 
        conservation purpose' has the meaning given to such term by 
        section 170(h)(4)(A), other than clause (iv) thereof.
            ``(2) Qualified real property.--The term `qualified real 
        property' means any real property--
                    ``(A) which is located in the United States, and
                    ``(B) which is used exclusively for conservation 
                purposes.
            ``(3) Qualified conservation easement.--The term `qualified 
        conservation easement' means a restriction (granted in 
        perpetuity) on the use which may be made of qualified real 
        property which does not permit any use of such property for any 
        purpose other than use exclusively for a qualified conservation 
        purpose.
            ``(4) Governmental unit.--The term `governmental unit' 
        means an entity described in section 170(c)(1).
    ``(c) Verification of Easement.--Subsection (a) shall not apply by 
reason of any qualified conservation easement unless the taxpayer--
            ``(1) notifies the Secretary in such form and manner as the 
        Secretary may by regulations prescribe, and
            ``(2) submits to the Secretary a copy of such easement.''.
    (b) Clerical Amendment.--The table of sections for such part is 
amended by striking the last item and inserting the following new 
items:

                              ``Sec. 139. Exclusion of gain from sale 
                                        of real property or an easement 
                                        therein to a governmental unit 
                                        for open space conservation 
                                        purposes.
                              ``Sec. 139A. Cross references to other 
                                        Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges after December 31, 2000.
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