[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 701 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 701

 To amend the Internal Revenue Code of 1986 to encourage contributions 
     of capital gain real property made for conservation purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 25, 2003

  Mr. Baucus (for himself and Mr. Grassley) 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 encourage contributions 
     of capital gain real property made for conservation purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATIONS TO ENCOURAGE CONTRIBUTIONS OF CAPITAL GAIN 
              REAL PROPERTY MADE FOR CONSERVATION PURPOSES.

    (a) In General.--Section 170(h) of the Internal Revenue Code of 
1986 (relating to qualified conservation contribution) is amended by 
adding at the end the following new paragraph:
            ``(7) Additional incentives for qualified conservation 
        contributions.--
                    ``(A) In general.--In the case of any qualified 
                conservation contribution (as defined in paragraph (1)) 
                made by an individual--
                            ``(i) subparagraph (C) of subsection (b)(1) 
                        shall not apply,
                            ``(ii) except as provided in subparagraph 
                        (B)(i), subsections (b)(1)(A) and (d)(1) shall 
                        be applied separately with respect to such 
                        contributions by treating references to 50 
                        percent of the taxpayer's contribution base as 
                        references to the amount of such percentage of 
                        such base reduced by the amount of other 
                        contributions allowable under subsection 
                        (b)(1)(A), and
                            ``(iii) subparagraph (A) of subsection 
                        (d)(1) shall be applied--
                                    ``(I) by substituting `15 
                                succeeding taxable years' for `5 
                                succeeding taxable years', and
                                    ``(II) by applying clause (ii) to 
                                each of the 15 succeeding taxable 
                                years.
                    ``(B) Special rules for eligible farmers and 
                ranchers.--
                            ``(i) In general.--In the case of any such 
                        contributions made by an eligible farmer or 
                        rancher--
                                    ``(I) if the taxpayer is an 
                                individual, subsections (b)(1)(A) and 
                                (d)(1) shall be applied separately with 
                                respect to such contributions by 
                                substituting `the taxpayer's 
                                contribution base reduced by the amount 
                                of other contributions allowable under 
                                subsection (b)(1)(A)' for `50 percent 
                                of the taxpayer's contribution base' 
                                each place it appears, and
                                    ``(II) if the taxpayer is a 
                                corporation, subsections (b)(2) and 
                                (d)(2) shall be applied separately with 
                                respect to such contributions, 
                                subsection (b)(2) shall be applied with 
                                respect to such contributions as if 
                                such subsection did not contain the 
                                words `10 percent of' and as if 
                                subparagraph (A) thereof read `the 
                                deduction under this section for 
                                qualified conservation contributions', 
                                and rules similar to the rules of 
                                subparagraph (A)(iii) shall apply for 
                                purposes of subsection (d)(2).
                            ``(ii) Definition.--For purposes of clause 
                        (i), the term `eligible farmer or rancher' 
                        means a taxpayer whose gross income from the 
                        trade or business of farming (within the 
                        meaning of section 2032A(e)(5)) is at least 51 
                        percent of the taxpayer's gross income for the 
                        taxable year, and, in the case of a C 
                        corporation, the stock of which is not publicly 
                        traded on a recognized exchange.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after the date of the enactment of this Act.
                                 <all>