HR 1486 IH

To amend the Internal Revenue Code of 1986 to encourage qualified conservation contributions by allowing an estate tax deduction for such contributions made by the heirs of the estate.

April 4, 2001

Ms. LOFGREN (for herself, Mr. HONDA, and Mr. PRICE of North Carolina) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to encourage qualified conservation contributions by allowing an estate tax deduction for such contributions made by the heirs of the estate.

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

SECTION 1. CERTAIN GIFTS BY HEIRS OF DECEDENT ALLOWED AS DEDUCTION IN DETERMINING TAXABLE ESTATE OF DECEDENT.

(a) IN GENERAL- Section 2055 of the Internal Revenue Code of 1986 (relating to transfers for public, charitable, and religious uses) is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:

`(g) CERTAIN GIFTS BY HEIRS OF DECEDENT ALLOWED AS DEDUCTION-

`(1) IN GENERAL- In the case of real property acquired from or passed from a decedent, if each person in being who has an interest (whether or not in possession) in such property files, with the return of tax imposed by this chapter on such decedent--

`(A) a signed statement indicating such person's intent to make (within a reasonable period) a contribution of such property (or a remainder interest therein) to a qualified organization (as defined in section 170(h)(3)) exclusively for conservation purposes (as defined in section 170(h)(4)), and

`(B) an election to have this subsection apply to such property (or interest),

such contribution shall be treated for purposes of this title as having been made as a bequest or devise directly from the estate of such decedent.

`(2) RETURN MUST BE TIMELY FILED- Paragraph (1) shall not apply unless the return is filed on or before the due date (including extensions).

`(3) STATUTE OF LIMITATIONS OPEN UNTIL AFTER CONTRIBUTION IS MADE- If any person elects to have this subsection apply to any property, then--

`(A) the statutory period for the assessment of any deficiency attributable to such property shall not expire before the expiration of 3 years from the date the Secretary is notified by such person (in such manner as the Secretary may prescribe) of--

`(i) the transfer of such property in a contribution described in paragraph (1)(A), or

`(ii) such person's intention not to make such a transfer, and

`(B) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.

`(4) MODIFICATIONS- Rules similar to the rules which apply under section 2032A(d)(3) shall apply for purposes of this subsection.'

(b) EFFECTIVE DATE- The amendment made by this section shall take effect as if included in the amendments made by section 508 of the Taxpayer Relief Act of 1997. The heirs of all estates subject to such section 508 for which an estate tax return was timely filed by the due date (including extensions) shall have 1 year from the date of enactment of this Act to comply with the requirements of section 2055(g) of the Internal Revenue Code of 1986, as added by this section.

END