[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1458 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1458

To amend the Internal Revenue Code of 1986 to exclude from gross income 
      gain on the sale or exchange of farmland development rights.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 9, 2007

 Mr. Pitts (for himself, Mr. Gerlach, Mr. English of Pennsylvania, Mr. 
    Poe, Mr. Kuhl of New York, Mrs. Myrick, Mr. Paul, Mr. Miller of 
Florida, Mrs. Drake, Mr. Souder, and Mr. Wolf) 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 or exchange of farmland development rights.

    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 ``Family Farm Preservation Act of 
2007''.

SEC. 2. EXCLUSION OF GAIN FROM SALE OF FARMLAND DEVELOPMENT RIGHTS.

    (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 inserting after section 139A the 
following new section:

``SEC. 139B. SALES AND EXCHANGES OF FARMLAND DEVELOPMENT RIGHTS TO 
              QUALIFIED CONSERVATION ORGANIZATION.

    ``(a) General Rule.--In the case of the owner of eligible farmland, 
gross income does not include gain from the sale or exchange of 
qualified farmland development rights to a qualified conservation 
organization.
    ``(b) Qualified Farmland Development Rights.--For purposes of 
subsection (a)--
            ``(1) In general.--The term `qualified farmland development 
        rights' means a restriction (granted in perpetuity) with 
        respect to eligible farmland which does not permit any use of 
        such farmland for any purpose other than use as a farm for 
        farming purposes (within the meaning of section 2032A(e)) or 
        for exclusively conservation purposes (within the meaning of 
        section 170(h)(5)).
            ``(2) Farm and farming purposes.--The terms `farm' and 
        `farming purposes' have the meanings given such terms by 
        section 2032A(e).
            ``(3) Eligible farmland.--The term `eligible farmland' 
        means any real property--
                    ``(A) which is located in the United States,
                    ``(B) which is used as a farm for farming purposes 
                (within the meaning of section 2032A(e)), and
                    ``(C) which is located in a county which has a 
                population of 100 or more persons per square mile.
    ``(c) Qualified Conservation Organization.--For purposes of this 
section, the term `qualified conservation organization' means, with 
respect to any taxable year, an organization described in section 
170(h)(3) and organized to serve primarily conservation purposes (as 
defined in section 170(h)(4)).
    ``(d) Regulations.--The Secretary may prescribe such regulations as 
may be necessary or appropriate to carry out this section, including 
regulations providing for--
            ``(1) a recapture of the benefit of the exclusion from 
        gross income under subsection (a) if the qualified farmland 
        development rights are extinguished in a subsequent taxable 
        year, and
            ``(2) interest at the underpayment rate established under 
        section 6621 on the amount determined pursuant to paragraph (1) 
        for each prior taxable year for the period beginning on the due 
        date for filing the return for the prior taxable year involved.
No deduction shall be allowed under this chapter for interest described 
in paragraph (2).''.
    (b) Clerical Amendment.--The table of sections for such part is 
amended by striking the last item and inserting the following new item:

``Sec. 139B. Sales and exchanges of farmland development rights to 
                            qualified conservation organization.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges after December 31, 2007.
                                 <all>