[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3134 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3134

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 28 (legislative day, September 22), 2000

  Mr. Baucus 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 an income tax 
  credit 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 ``Rural Heritage Conservation 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 who elects the application of this section for a 15-
consecutive-taxable-year period, there shall be allowed as a credit 
against the tax imposed by this chapter for any taxable year within 
such period an amount equal to the sum of--
            ``(1) 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)), plus
            ``(2) the amount of any carryforward credit allowable under 
        subsection (e).
    ``(b) Limitations.--
            ``(1) Maximum credit.--
                    ``(A) In general.--The credit allowed by subsection 
                (a) for all taxable years of the taxpayer shall not 
                exceed $500,000.
                    ``(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 regular tax for the taxable year reduced by the sum of the 
        credits allowable under subpart A and the preceding sections of 
        this subpart.
    ``(c) Eligible Farmer or Rancher.--For purposes of this section, 
the term `eligible farmer or rancher' means a taxpayer--
            ``(1) whose gross income from farming (as defined in 
        section 464(e)(1)) is at least 51 percent of the taxpayer's 
        gross income for the taxable year, and
            ``(2) in the case of a C corporation, the stock of which is 
        not publicly traded on a recognized exchange.
    ``(d) Special Rules.--
            ``(1) Election.--A taxpayer may make only 1 election under 
        subsection (a). 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 such subsection, or if shorter, during the 
        period ending with the taxable year in which the limitation 
        under subsection (b)(1)(A) is attained.
    ``(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 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, in taxable years ending after such 
date.

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.--An eligible 
                farmer or rancher (as defined in section 30B(c)) 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(c) with respect to a qualified conservation 
contribution),''.
    (c) Effective Date.--The amendments made by this section shall 
apply 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, in taxable years ending after such 
date.

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 amendments made by this section shall 
apply 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.
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