[Congressional Record Volume 149, Number 48 (Tuesday, March 25, 2003)]
[Senate]
[Pages S4380-S4381]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself and Mr. Grassley):
  S. 701. A bill to amend the Internal Revenue Code of 1986 to 
encourage contributions of capital gain real property made for 
conservation purposes; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, today I re-introduced the Rural Heritage 
Conservation Act, along with my good friend Senator Grassley from Iowa. 
I would like to say a few words about why this bill is so important to 
my home state of Montana and to the Nation.
  We are losing precious agricultural and ranch lands at a record pace. 
Farming and ranching are the backbone of my state, comprising the 
largest sector of my state's economy. Not only do these farms and 
ranches provide Montana and the Nation with the highest quality food 
and fiber, they also provide wildlife habitat, open space and peace of 
mind. It is imperative that we help our hard-working farmers and 
ranchers preserve this precious heritage and their way-of-life.
  Conservation easements have been tremendously successful in 
preserving open space and wildlife habitat. Unfortunately, the way 
current tax law is structured makes it difficult for farmers and 
ranchers, who generally don't have much income, to take advantage of 
the tax benefits associated with donating conservation easements. 
They've been left behind by this important conservation tool. That's 
why I introduced the Rural Heritage Conservation Act. My bill will 
provide targeted income tax relief to small farmers and ranchers who 
wish to make a charitable contribution of a qualified conservation 
easement.
  The Rural Heritage Conservation Act would allow eligible farmers and 
ranchers to increase the amounts of deduction that may be taken 
currently for charitable contributions of qualified conservation 
easements by raising the Adjusted Gross Income limitations to 100 
percent and extending the carryover period from 5 years to 15 years. In 
the case of all of the landowners, the AGI limitation would be raised 
from 30 percent to 50 percent.
  This is a win-win situation--farmers and ranchers will be able to 
preserve their important agricultural and ranching lands for future 
generations, while continuing to operate their businesses and stay on 
their land. It's a purely voluntary, incentive-based way to promote 
conservation. It will allow us to bring people together. Landowners, 
conservationists, the federal government, and local communities all can 
work together to preserve our precious natural resources.
  This legislation is vitally important to Montana, and to every other 
state in

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the Nation where important agricultural or ranching lands are being 
lost to rapid development, and a way-of-life is disappearing. I ask my 
colleagues to join with me and Senator Grassley to pass this bill as 
soon as possible and send it to the President's desk. We have to act 
now.
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