HR 5336 IH
106th CONGRESS
2d Session
H. R. 5336
To amend the Internal Revenue Code of 1986 to exclude from gross
income gain on the sale to a governmental unit of land or an easement therein
for open space conservation purposes.
IN THE HOUSE OF REPRESENTATIVES
September 28, 2000
Mr. FORBES (for himself and Mr. ENGEL) 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 to a governmental unit of land or an easement therein
for open space 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 and Reinvestment Tax-Incentive
Act of 2000'.
SEC. 2. FINDINGS.
The Congress finds that--
(1) the Nation's natural resources are vital to the future prosperity of
the United States,
(2) accessible, open space for all Americans to enjoy promotes health
and well being of the people,
(3) accessible, open space for all Americans to enjoy provides
educational opportunities,
(4) many Americans wish to make their land open to all in perpetuity,
and
(5) the taxes incurred on the sale of land can be a disincentive to
owners to choose to keep the land undeveloped.
SEC. 3. EXCLUSION OF GAIN FROM SALE OF REAL PROPERTY OR AN EASEMENT THEREIN
TO A GOVERNMENTAL UNIT FOR OPEN SPACE CONSERVATION PURPOSES.
(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 redesignating section 139 as section 139A and by
inserting after section 138 the following new section:
`SEC. 139. EXCLUSION OF GAIN FROM SALE OF REAL PROPERTY OR AN EASEMENT
THEREIN TO A GOVERNMENTAL UNIT FOR OPEN SPACE CONSERVATION PURPOSES.
`(a) GENERAL RULE- Gross income does not include gain from the sale or
exchange to a governmental unit of--
`(1) qualified real property subject to a qualified conservation
easement, and
`(2) a qualified conservation easement.
`(b) DEFINITIONS- For purposes of this section--
`(1) QUALIFIED CONSERVATION PURPOSE- The term `qualified conservation
purpose' has the meaning given to such term by section 170(h)(4)(A), other
than clause (iv) thereof.
`(2) QUALIFIED REAL PROPERTY- The term `qualified real property' means
any real property--
`(A) which is located in the United States, and
`(B) which is used exclusively for conservation purposes.
`(3) QUALIFIED CONSERVATION EASEMENT- The term `qualified conservation
easement' means a restriction (granted in perpetuity) on the use which may
be made of qualified real property which does not permit any use of such
property for any purpose other than use exclusively for a qualified
conservation purpose.
`(4) GOVERNMENTAL UNIT- The term `governmental unit' means an entity
described in section 170(c)(1).
`(c) VERIFICATION OF EASEMENT- Subsection (a) shall not apply by reason of
any qualified conservation easement unless the taxpayer--
`(1) notifies the Secretary in such form and manner as the Secretary may
by regulations prescribe, and
`(2) submits to the Secretary a copy of such easement.'.
(b) CLERICAL AMENDMENT- The table of sections for such part is amended by
striking the last item and inserting the following new items:
`Sec. 139. Exclusion of gain from sale of real property or an easement
therein to a governmental unit for open space conservation purposes.
`Sec. 139A. Cross references to other Acts.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
sales and exchanges after December 31, 2000.
END