[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1329 Introduced in Senate (IS)]

  1st Session
                                S. 1329

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


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                   IN THE SENATE OF THE UNITED STATES

                             August 2, 2001

 Mr. Jeffords (for himself, Mr. Bingaman, Mr. Hatch, Mr. Grassley, Mr. 
Daschle, Mr. Durbin, Mr. Chafee, and Mr. Bond) 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 a tax incentive 
               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 
2001''.

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 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 inserting after section 121 the 
following new section:

``SEC. 121A. 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 an entity described in section 170(h)(3) or an 
agency or department thereof and which 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).
    ``(c) Stock in Holding Corporations.--For purposes of this section, 
the term `land or an interest in land or water' shall include a 
controlling stock interest 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. For purposes of the preceding sentence, the term 
`control' means ownership of stock in a corporation which meets the 
requirements of section 1504(a)(2) (determined by substituting `50 
percent' for `80 percent' each place it appears).''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 121 the following new item:

                              ``Sec. 121A. 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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