[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3146 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3146

     To amend the Internal Revenue Code to provide a tax credit to 
   individuals who enter into agreements to protect the habitats of 
       endangered and threatened species, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 22 (legislative day, March 19), 2010

  Mr. Crapo (for himself, Mrs. Lincoln, Mr. Burr, Mr. Brownback, Ms. 
Collins, Ms. Snowe, Mr. Cochran, Mr. Cornyn, Mr. Tester, and Mr. Risch) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code to provide a tax credit to 
   individuals who enter into agreements to protect the habitats of 
       endangered and threatened species, 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 ``Endangered Species Recovery Act of 
2010''.

SEC. 2. ENDANGERED SPECIES RECOVERY CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30E. ENDANGERED SPECIES RECOVERY CREDIT.

    ``(a) In General.--In the case of an eligible taxpayer, there shall 
be allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the sum of--
            ``(1) the habitat protection easement credit, plus
            ``(2) the habitat restoration credit.
    ``(b) Limitation.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any eligible taxpayer for any taxable year shall not exceed 
        the endangered species recovery credit limitation allocated to 
        the eligible taxpayer under subsection (f) for the calendar 
        year in which the taxpayer's taxable year ends.
            ``(2) Carryforwards.--
                    ``(A) In general.--If the amount of the credit 
                allowable under subsection (a) for any taxpayer for any 
                taxable year exceeds the endangered species recovery 
                credit limitation allocated under subsection (f) to 
                such taxpayer for the calendar year in which the 
                taxpayer's taxable year ends, such excess may be 
                carried forward to the next taxable year for which such 
                taxpayer is allocated a portion of the endangered 
                species recovery credit limitation.
                    ``(B) Carryforward of allocation amount.--If the 
                amount of the endangered species recovery credit 
                limitation allocated to an eligible taxpayer for any 
                calendar year under subsection (f) exceeds the amount 
                of the credit allowed to the taxpayer under subsection 
                (a) for the taxable year ending in such calendar year, 
                such excess may be carried forward to the next taxable 
                year of the taxpayer. For purposes of this paragraph, 
                any amount carried to another taxable year under this 
                subparagraph shall be treated as allocated to the 
                taxpayer for use in such taxable year under subsection 
                (f).
    ``(c) Eligible Taxpayer.--For purposes of this section--
            ``(1) In general.--The term `eligible taxpayer' means--
                    ``(A) a taxpayer who--
                            ``(i) owns real property which contains the 
                        habitat of a qualified species, and
                            ``(ii) enters into a qualified perpetual 
                        habitat protection agreement, a qualified 30-
                        year habitat protection agreement, or a 
                        qualified habitat protection agreement with the 
                        appropriate Secretary with respect to such real 
                        property, and
                    ``(B) any other taxpayer who--
                            ``(i) is a party to a qualified perpetual 
                        habitat protection agreement, a qualified 30-
                        year habitat protection agreement, or a 
                        qualified habitat protection agreement, and
                            ``(ii) as part of any such agreement, 
                        agrees to assume responsibility for costs paid 
                        or incurred as a result of implementing such 
                        agreement.
            ``(2) Qualified perpetual habitat protection agreement.--
        The term `qualified perpetual habitat protection agreement' 
        means an agreement--
                    ``(A) under which the taxpayer grants to the 
                appropriate Secretary, the Secretary of Agriculture, 
                the Secretary of Defense, or a State an easement in 
                perpetuity for the protection of the habitat of a 
                qualified species, and
                    ``(B) which meets the requirements of paragraph 
                (5).
            ``(3) Qualified 30-year habitat protection agreement.--The 
        term `qualified 30-year habitat protection agreement' means an 
        agreement--
                    ``(A) under which the taxpayer grants to the 
                appropriate Secretary, the Secretary of Agriculture, 
                the Secretary of Defense, or a State an easement for a 
                period of not less than 30 years and less than 
                perpetuity for the protection of the habitat of a 
                qualified species, and
                    ``(B) which meets the requirements of paragraph 
                (5).
            ``(4) Qualified habitat protection agreement.--The term 
        `qualified habitat protection agreement' means an agreement--
                    ``(A) under which the taxpayer enters into an 
                agreement with the appropriate Secretary, the Secretary 
                of Agriculture, the Secretary of Defense, or a State to 
                protect the habitat of a qualified species for a 
                specified period of time, and
                    ``(B) which meets the requirements of paragraph 
                (5).
            ``(5) Requirements.--An agreement meets the requirements of 
        this paragraph if--
                    ``(A) the agreement is consistent with any recovery 
                plan which is applicable and which has been approved 
                for a qualified species under section 4 of the 
                Endangered Species Act of 1973,
                    ``(B) the appropriate Secretary and the eligible 
                taxpayer enter into a habitat management plan designed 
                to--
                            ``(i) restore or enhance the habitat of a 
                        qualified species, or
                            ``(ii) reduce threats to a qualified 
                        species through the management of the habitat, 
                        and
                    ``(C) the appropriate Secretary ensures that the 
                eligible taxpayer is provided with technical assistance 
                in carrying out the duties of the taxpayer under the 
                terms of the agreement.
    ``(d) Habitat Protection Easement Credit.--
            ``(1) In general.--For purposes of subsection (a)(1), the 
        habitat protection easement credit for any taxable year is an 
        amount equal to--
                    ``(A) in the case of an eligible taxpayer who has 
                entered into a qualified perpetual habitat protection 
                agreement during such taxable year, 100 percent of the 
                excess (if any) of--
                            ``(i) the fair market value of the real 
                        property with respect to which the qualified 
                        perpetual habitat protection agreement is made, 
                        determined on the day before such agreement is 
                        entered into, over
                            ``(ii) the fair market value of such 
                        property, determined on the day after such 
                        agreement is entered into,
                    ``(B) in the case of an eligible taxpayer who has 
                entered into a qualified 30-year habitat protection 
                agreement during such taxable year, 75 percent of such 
                excess, and
                    ``(C) in the case of any other eligible taxpayer, 
                zero.
            ``(2) Reduction for amount received for easement.--The 
        credit allowed under subsection (a)(1) shall be reduced by any 
        amount received by the taxpayer in connection with the 
        easement.
            ``(3) Limitation based on amount of tax.--The credit 
        allowed under subsection (a)(1) for any taxable year shall not 
        exceed the sum of--
                    ``(A) the taxpayer's regular tax liability for the 
                taxable year reduced by the sum of the credits 
                allowable under subpart A and sections 27, 30, 30B, 
                30C, and 30D, and
                    ``(B) the tax imposed by section 55(a) for the 
                taxable year.
            ``(4) Carryforward of unused credit.--If the credit 
        allowable under subsection (a)(1) for any taxable year exceeds 
        the limitation imposed by paragraph (3) for such taxable year, 
        such excess shall be carried to the succeeding taxable year and 
        added to the credit allowable under subsection (a)(1) for such 
        succeeding taxable year.
            ``(5) Qualified appraisals required.--No amount shall be 
        taken into account under this subsection unless the eligible 
        taxpayer includes with the taxpayer's return for the taxable 
        year a qualified appraisal (within the meaning of section 
        170(f)(11)(E)) of the real property.
    ``(e) Habitat Restoration Credit.--
            ``(1) In general.--For purposes of subsection (a)(2), the 
        habitat restoration credit for any taxable year shall be an 
        amount equal to--
                    ``(A) in the case of a qualified perpetual habitat 
                protection agreement, 100 percent of the costs paid or 
                incurred by an eligible taxpayer during such taxable 
                year pursuant to the habitat management plan entered 
                into under such agreement,
                    ``(B) in the case of a qualified 30-year habitat 
                protection agreement, 75 percent of the costs paid or 
                incurred by an eligible taxpayer during such taxable 
                year pursuant to the habitat management plan entered 
                into under such agreement, and
                    ``(C) in the case of a qualified habitat protection 
                agreement, 50 percent of the costs paid or incurred by 
                an eligible taxpayer during such taxable year pursuant 
                to the habitat management plan entered into under such 
                agreement.
            ``(2) Limitation based on amount of tax.--The credit 
        allowed under subsection (a)(2) for any taxable year shall not 
        exceed the excess (if any) of--
                    ``(A) the regular tax liability for the taxable 
                year reduced by the sum of the credits allowable under 
                subpart A and sections 27, 30, 30B, 30C, and 30D, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(3) Carryforward of unused credit.--If the credit 
        allowable under subsection (a)(2) for any taxable year exceeds 
        the limitation imposed by paragraph (2) for such taxable year, 
        such excess shall be carried to the succeeding taxable year and 
        added to the credit allowable under subsection (a)(2) for such 
        succeeding taxable year.
            ``(4) Special rules.--
                    ``(A) Certain costs not included.--No credit shall 
                be allowed under subsection (a)(2) for any cost which 
                is paid or incurred by a taxpayer to comply with any 
                requirement of a Federal, State, or local government.
                    ``(B) Subsidized financing.--For purposes of 
                paragraph (1), the amount of costs paid or incurred by 
                an eligible taxpayer pursuant to any agreement 
                described in subsection (c) shall be reduced by the 
                amount of any financing provided under any Federal or 
                State program a principal purpose of which is to 
                subsidize financing for the conservation of the habitat 
                of a qualified species.
    ``(f) Endangered Species Recovery Credit Limitation.--
            ``(1) In general.--There is an endangered species recovery 
        credit limitation for each calendar year. Such limitation is--
                    ``(A) for 2011, 2012, 2013, 2014, and 2015--
                            ``(i) $300,000,000 with respect to 
                        qualified perpetual habitat protection 
                        agreements,
                            ``(ii) $60,000,000 with respect to 
                        qualified 30-year habitat protection 
                        agreements, and
                            ``(iii) $40,000,000 with respect to 
                        qualified habitat protection agreements, and
                    ``(B) except as provided in paragraph (3), zero 
                thereafter.
            ``(2) Allocation of limitation.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Secretary of the Interior and the Secretary of 
                Commerce, shall allocate the endangered species 
                recovery credit limitation to eligible taxpayers.
                    ``(B) Establishment of allocation program.--Not 
                later than 180 days after the date of the enactment of 
                this Act, the Secretary of the Treasury, in 
                consultation with the Secretary of the Interior and the 
                Secretary of Commerce, shall, by regulation, establish 
                a program to process applications from eligible 
                taxpayers and to determine how to best allocate the 
                credit limitation under subparagraph (A), taking into 
                account the considerations described in subparagraph 
                (C).
                    ``(C) Considerations.--In accepting applications to 
                make allocations to eligible taxpayers under this 
                section, priority shall be given to taxpayers with 
                agreements--
                            ``(i) relating to habitats that will 
                        significantly increase the likelihood of 
                        recovering and delisting a species as an 
                        endangered species or a threatened species (as 
                        defined under section 2 of the Endangered 
                        Species Act of 1973),
                            ``(ii) that are cost-effective and maximize 
                        the benefits to a qualified species per dollar 
                        expended,
                            ``(iii) relating to habitats of species 
                        which have a federally approved recovery plan 
                        pursuant to section 4 of the Endangered Species 
                        Act of 1973,
                            ``(iv) relating to habitats with the 
                        potential to contribute significantly to the 
                        improvement of the status of a qualified 
                        species,
                            ``(v) relating to habitats with the 
                        potential to contribute significantly to the 
                        eradication or control of invasive species that 
                        are imperiling a qualified species,
                            ``(vi) with habitat management plans that 
                        will manage multiple qualified species,
                            ``(vii) with habitat management plans that 
                        will create adjacent or proximate habitat for 
                        the recovery of a qualified species,
                            ``(viii) relating to habitats for qualified 
                        species with an urgent need for protection,
                            ``(ix) with habitat management plans that 
                        assist in preventing the listing of a species 
                        as endangered or threatened under the 
                        Endangered Species Act of 1973 or a similar 
                        State law,
                            ``(x) with habitat management plans that 
                        may resolve conflicts between the protection of 
                        qualified species and otherwise lawful human 
                        activities, and
                            ``(xi) with habitat management plans that 
                        may resolve conflicts between the protection of 
                        a qualified species and military training or 
                        other military operations.
            ``(3) Carryover of unused limitation.--If for any calendar 
        year the limitation under paragraph (1) (after the application 
        of this paragraph) exceeds the amount allocated to all eligible 
        taxpayers for such calendar year, the limitation amount for the 
        following calendar year shall be increased by the amount of 
        such excess.
    ``(g) Other Definitions and Special Rules.--
            ``(1) Appropriate secretary.--The term `appropriate 
        Secretary' has the meaning given to the term `Secretary' under 
        section 3(15) of the Endangered Species Act of 1973.
            ``(2) Habitat management plan.--The term `habitat 
        management plan' means, with respect to any habitat, a plan 
        which--
                    ``(A) identifies one or more qualified species to 
                which the plan applies,
                    ``(B) describes the management practices to be 
                undertaken by the taxpayer,
                    ``(C) describes the technical assistance to be 
                provided to the taxpayer and identifies the entity that 
                will provide such assistance,
                    ``(D) provides a schedule of deadlines for 
                undertaking such management practices, and
                    ``(E) requires monitoring of the management 
                practices and the status of the qualified species.
            ``(3) Qualified species.--The term `qualified species' 
        means--
                    ``(A) any species listed as an endangered species 
                or threatened species under the Endangered Species Act 
                of 1973, or
                    ``(B) any species for which a finding has been made 
                under section 4(b)(3) of Endangered Species Act of 1973 
                that listing under such Act may be warranted.
            ``(4) Taking.--The term `taking' has the meaning given to 
        such term under the Endangered Species Act of 1973.
            ``(5) Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a credit is allowable under 
        subsection (a)(1) shall be reduced by the amount of the credit 
        so allowed.
            ``(6) Denial of double benefit.--No deduction shall be 
        allowed under this chapter for any amount with respect to which 
        a credit is allowed under subsection (a).
            ``(7) Certification.--No credit shall be allowed under 
        subsection (a) unless the appropriate Secretary certifies that 
        any agreement described in subsection (c) which is entered into 
        by an eligible taxpayer will contribute to the recovery of a 
        qualified species.
            ``(8) Request for authorization of incidental takings.--The 
        Secretary shall request the appropriate Secretary to consider 
        whether to authorize under the Endangered Species Act of 1973 
        takings by an eligible taxpayer of a qualified species to which 
        an agreement described in subsection (c) relates if the takings 
        are incidental to--
                    ``(A) the restoration, enhancement, or management 
                of the habitat pursuant to the habitat management plan 
                under the agreement, or
                    ``(B) the use of the property to which the 
                agreement pertains at any time after the expiration of 
                the easement or the specified period described in 
                subsection (c)(4)(A), but only if such use will leave 
                the qualified species at least as well off on the 
                property as it was before the agreement was made.
            ``(9) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit under any credit allowable 
        under subsection (a) if the Secretary, in consultation with the 
        appropriate Secretary, determines that--
                    ``(A) the eligible taxpayer has failed to carry out 
                the duties of the taxpayer under the terms of a 
                qualified perpetual habitat protection agreement, a 
                qualified 30-year habitat protection agreement, or a 
                qualified habitat protection agreement, and
                    ``(B) there are no other available means to 
                remediate such failure.''.
    (b) GAO Study.--
            (1) In general.--The Comptroller General of the United 
        States shall undertake a study on the effectiveness of the 
        endangered species recovery credit under section 30E of the 
        Internal Revenue Code of 1986 (as added by this Act).
            (2) Issues to be studied.--The study under paragraph (1) 
        shall--
                    (A) evaluate--
                            (i) the effectiveness of the endangered 
                        species recovery credit in encouraging 
                        landowners to enter into agreements for the 
                        protection of the habitats of endangered and 
                        threatened species, and
                            (ii) the degree to which such agreements 
                        are effective in--
                                    (I) preserving the habitats of 
                                endangered and threatened species, and
                                    (II) assisting in the recovery of 
                                such species, and
                    (B) include recommendations for improving the 
                effectiveness of endangered species recovery credit.
            (3) Reports.--
                    (A) Interim report.--Not later than 3 years after 
                the date of the enactment of this Act, the Comptroller 
                General of the United States shall submit to Congress 
                an interim report on the study conducted under 
                paragraph (1).
                    (B) Final report.--Not later than 5 years after the 
                date of the enactment of this Act, the Comptroller 
                General of the United States shall submit to Congress a 
                final report on the study conducted under paragraph 
                (1).
    (c) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (36), by 
        striking the period at the end of paragraph (37) and inserting 
        ``, and'', and by inserting after paragraph (37) the following 
        new paragraph:
            ``(38) to the extent provided in section 30E(g)(5).''.
            (2) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30D the following new item:

``Sec. 30E. Endangered species recovery credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.
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