108th CONGRESS
1st Session
H. R. 2964
To amend the Internal Revenue Code of 1986 to provide a tax incentive
for land sales for conservation purposes.
IN THE HOUSE OF REPRESENTATIVES
July 25, 2003
Mr. PORTMAN (for himself and Mr. MATSUI) 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 provide a tax incentive
for land sales for 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 Tax Incentives Act of 2003'.
SEC. 2. EXCLUSION OF 50 PERCENT OF GAIN ON SALES OF LAND OR INTERESTS IN
LAND OR WATER TO ELIGIBLE ENTITIES FOR CONSERVATION PURPOSES.
(a) IN GENERAL- 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 121 the following new section:
`SEC. 121A. 50-PERCENT EXCLUSION OF GAIN ON SALES OF LAND OR INTERESTS IN
LAND OR WATER TO ELIGIBLE ENTITIES FOR CONSERVATION PURPOSES.
`(a) EXCLUSION- Gross income shall not include 50 percent of any gain from
the sale of land or an interest in land or water (determined without regard
to any improvements) to an eligible entity if--
`(1) such land or interest in land or water was owned by the taxpayer or
a member of the taxpayer's family (as defined in section 2032A(e)(2)) at
all times during the 3-year period ending on the date of the sale, and
`(2) such land or interest in land or water is being acquired by an eligible
entity which provides the taxpayer, at the time of acquisition, a written
letter of intent which shall include the following statement: `The purchaser's
intent is that this acquisition will serve 1 or more of the conservation
purposes specified in clause (i), (ii), or (iii) of section 170(h)(4)(A).
`(b) ELIGIBLE ENTITY- For purposes of this section, the term `eligible entity'
means an entity described in section 170(h)(3) or an agency or department
thereof and which is organized and at all times operated principally for 1
or more of the conservation purposes specified in clause (i), (ii), or (iii)
of section 170(h)(4)(A).
`(c) STOCK IN HOLDING CORPORATIONS- For purposes of this section, the term
`land or an interest in land or water' shall include a controlling stock interest
in any corporation if the fair market value of the corporation's land or interests
in land or water equals or exceeds 90 percent of the fair market value of
all of such corporation's assets at all times during the 3-year period ending
on the date of the sale. For purposes of the preceding sentence, the term
`control' means ownership of stock in a corporation which meets the requirements
of section 1504(a)(2) (determined by substituting `50 percent' for `80 percent'
each place it appears).'.
(b) CLERICAL AMENDMENT- The table of sections for part III of subchapter B
of chapter 1 of such Code is amended by inserting after the item relating
to section 121 the following new item:
`Sec. 121A. 50-percent exclusion of gain on sales of land or interests in
land or water to eligible entities for conservation purposes.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to sales
occurring on or after the date of enactment of this Act.
END
