Endangered Species Conservation Incentives Act of 1995

Summary: Endangered Species Conservation Incentives Act of 1995 - Amends the Internal Revenue Code to permit a taxpayer to designate any overpayment for endangered species conservation. 
Establishes the Endangered Species Conservation Trust Fund in the Treasury into which the designated amount will be transferred. 
Deducts from the value of a taxable estate an amount equal to the value of any endangered species agreement property included in the estate.  Provides for the recapture of such benefit in certain cases. 
Sets forth a provision providing for the valuation of a conservation easement. 
Allows a limited credit for endangered species conservation agreement costs.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Endangered Species Conservation 
Incentives Act of 1995''.

SEC. 2. DESIGNATIONS OF OVERPAYMENTS FOR ENDANGERED SPECIES 
              CONSERVATION.

    (a) General Rule.--Subchapter A of chapter 61 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
part:

     ``PART IX--DESIGNATION OF OVERPAYMENTS FOR ENDANGERED SPECIES 
                              CONSERVATION
                              ``Sec. 6097. Amounts for endangered 
                                        species conservation.
``SEC. 6097. AMOUNTS FOR ENDANGERED SPECIES CONSERVATION.

    ``(a) In General.--With respect to each taxpayer's return for the 
taxable year of the tax imposed by chapter 1, such taxpayer may 
designate that any overpayment of such tax for such taxable year be 
paid over for endangered species conservation.
    ``(b) Manner and Time of Designation.--A designation under 
subsection (a) may be made with respect to any taxable year only at the 
time of filing the return of the tax imposed by chapter 1 for such 
taxable year. Such designation shall be made on the first page of the 
return.
    ``(c) Overpayments Treated as Refunded.--For purposes of this 
title, any overpayment of tax designated under subsection (a) shall be 
treated as being refunded to the taxpayer as of the last date 
prescribed for filing the return of tax imposed by chapter 1 
(determined without regard to extensions) or, if later, the date the 
return is filed.''
    (b) Endangered Species Conservation Trust Fund.--
            (1) In general.--Subchapter A of chapter 98 of such Code 
        (relating to trust fund code) is amended by adding at the end 
        the following new section:

``SEC. 9512. ENDANGERED SPECIES CONSERVATION TRUST FUND.
    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Endangered 
Species Conservation Trust Fund', consisting of such amounts as may be 
appropriated or credited to the Endangered Species Conservation Trust 
Fund as provided in this section or section 9602(b).
    ``(b) Transfer to Endangered Species Conservation Trust Fund of 
Amounts Designated.--There is hereby appropriated to the Endangered 
Species Conservation Trust Fund amounts equivalent to the amounts 
designated under section 6097 and received in the Treasury.
    ``(c) Expenditures From Trust Fund.--
            ``(1) In general.--The Secretary shall pay, not less often 
        than quarterly, to Secretary of the Interior from the 
        Endangered Species Conservation Trust Fund an amount equal to 
        the amount in such Fund as of the time of such payment less any 
        administrative expenses of the Secretary which may be paid 
        under paragraph (2).
            ``(2) Administrative expenses.--Amounts in the Endangered 
        Species Conservation Trust Fund shall be available to pay the 
        administrative expenses of the Department of the Treasury 
        directly allocable to--
                    ``(A) modifying the individual income tax return 
                forms to carry out section 6097,
                    ``(B) carrying out this chapter with respect to 
                such Fund, and
                    ``(C) processing amounts received under section 
                6097 and transferring such amounts to such Fund.''
    (c) Clerical Amendments.--
            (1) The table of parts for subchapter A of chapter 61 of 
        such Code is amended by adding at the end the following new 
        item:

                              ``Part IX. Designation of overpayments 
                                        for endangered species 
                                        conservation.''
            (2) The table of sections for such subchapter A is amended 
        by adding at the end the following new item:

                              ``Sec. 9512. Endangered Species 
                                        Conservation Trust Fund.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.
SEC. 3. EXCLUSION FROM ESTATE FOR REAL PROPERTY SUBJECT TO ENDANGERED 
              SPECIES CONSERVATION AGREEMENT.

    (a) In General.--Part IV of subchapter A of chapter 11 of the 
Internal Revenue Code of 1986 (relating to taxable estate) is amended 
by adding at the end the following new section:
``SEC. 2057. CERTAIN REAL PROPERTY SUBJECT TO ENDANGERED SPECIES 
              CONSERVATION AGREEMENT.

    ``(a) General Rule.--For purposes of the tax imposed by section 
2001, the value of the taxable estate shall be determined by deducting 
from the value of the gross estate an amount equal to the value of any 
endangered species agreement property included in the gross estate.
    ``(b) Endangered Species Agreement Property.--For purposes of this 
section, the term `endangered species agreement property' means any 
real property if--
            ``(1) each person who has an interest in such property 
        (whether or not in possession)--
                    ``(A) has entered into an endangered species 
                conservation agreement with respect to such property, 
                and
                    ``(B) has entered into a written agreement with the 
                Secretary consenting to the application of subsection 
                (d), and
            ``(2) the executor of the decedent's estate--
                    ``(A) elects the application of this section, and
                    ``(B) files with the Secretary such endangered 
                species conservation agreement.
    ``(c) Endangered Species Conservation Agreement.--For purposes of 
this section, the term `endangered species conservation agreement' 
means a written agreement, entered into with the Secretary of the 
Interior or the Secretary of Commerce--
            ``(1) which commits each person who signed such agreement 
        to carry out on such property activities or practices not 
        otherwise required by law, or to refrain from carrying out on 
        such property activities or practices that such person could 
        otherwise lawfully carry out, or both,
            ``(2) which is certified by such Secretary as assisting in 
        the conservation of any species which is--
                    ``(A) designated by such Secretary as an endangered 
                or threatened species under the Endangered Species Act 
                of 1973,
                    ``(B) proposed for such designation, or
                    ``(C) officially identified by such Secretary as a 
                candidate for possible future protection as an 
                endangered or threatened species, and
            ``(3) the duration of which is at least 10 years.
    ``(d) Coordination With Other Benefits.--No credit shall be allowed 
under section 30A with respect to any endangered species conservation 
agreement with respect to which an election under this section is made.
    ``(e) Recapture of Tax Benefit in Certain Cases.--
            ``(1) Disposition of interest or material breach.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), if, at any time during the 10-year 
                period beginning on the date the endangered species 
                conservation agreement is entered into with respect to 
                any property--
                            ``(i) any person disposes of any interest 
                        in such property, or
                            ``(ii) there is a material breach by any 
                        person who holds an interest in such property 
                        of any endangered species conservation 
                        agreement with respect to such property,
                then there is hereby imposed an additional estate tax.
                    ``(B) Amount of tax.--The amount of the tax imposed 
                by subparagraph (A) with respect to any interest shall 
                be the amount equal to the lesser of--
                            ``(i) the adjusted tax difference 
                        attributable to such interest (determined under 
                        rules similar to the rules of section 
                        2032A(c)(2)), or
                            ``(ii) the amount realized with respect to 
                        the interest (or, in any case other than a sale 
                        or exchange at arm's length, the fair market 
                        value of the interest.
                    ``(C) Exception if transferee assumes obligations 
                of transferor.--Subparagraph (A) shall not apply to a 
                disposition if the transferee enters into a binding 
                written agreement--
                            ``(i) to assume the obligations imposed on 
                        the transferor under the endangered species 
                        conservation agreement;
                            ``(ii) to assume liability for any tax 
                        imposed under subparagraph (A) with respect to 
                        any future dispositions or breaches by such 
                        transferee; and
                            ``(iii) to notify the Secretary who entered 
                        into the endangered species conservation 
                        agreement and the Secretary that the transferee 
                        has assumed the obligations and liabilities 
                        described in clauses (i) and (ii).
            ``(2) Due date of additional tax.--The tax imposed by 
        paragraph (1) shall become due and payable on the day that is 6 
        months after the date of the disposition or breach referred to 
        in paragraph (1)(A).
    ``(f) Statute of Limitations.--If a taxpayer incurs a tax liability 
pursuant to subsection (e)(1), then--
            ``(1) the statutory period for the assessment of any 
        additional tax imposed by subsection (e)(1) shall not expire 
        before the expiration of 3 years from the date the Secretary is 
        notified (in such manner as the Secretary may by regulation 
        prescribe) of the incurring of such tax liability, and
            ``(2) such additional tax may be assessed before the 
        expiration of such 3-year period notwithstanding the provisions 
        of any other law or rule of law that would otherwise prevent 
        such assessment.
    ``(g) Election and Filing of Agreement.--The election under this 
section shall be made on the return of the tax imposed by section 2001. 
Such election, and the filing under subsection (a) of an endangered 
species conservation agreement, shall be made in such manner as the 
Secretary shall by regulation provide.''
    (b) Clerical Amendment.--The table of sections for part IV of 
subchapter A of chapter 11 of such Code is amended by adding at the end 
the following new item:

                              ``Sec. 2057. Certain real property 
                                        subject to endangered species 
                                        conservation agreement.''
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after the date of the enactment of 
this Act.

SEC. 4. ENHANCED DEDUCTION FOR DONATION OF A CONSERVATION EASEMENT.

    (a) In General.-- Subsection (h) of section 170 of the Internal 
Revenue Code of 1986 (relating to charitable, etc., contributions and 
gifts) is amended by adding at the end the following new paragraph:
            ``(7) Enhanced valuation of easement for protection of 
        endangered species.--
                    ``(A) In general.--For purposes of this section, if 
                the taxpayer elects the application of this paragraph, 
                the value of any contribution of a qualified endangered 
                species easement shall be an amount equal to the excess 
                of--
                            ``(i) the value of the property burdened by 
                        the easement, determined without regard to--
                                    ``(I) such easement, and
                                    ``(II) any restrictions imposed by 
                                the Endangered Species Act of 1973, 
                                over
                            ``(ii) the value of such property, 
                        determined with regard to such easement and 
                        restrictions.
                    ``(B) Qualified endangered species easement.--For 
                purposes of this paragraph, the term `qualified 
                endangered species easement' means any restriction 
                referred to in paragraph (1)(C) contributed to the 
                Secretary of the Interior, the Secretary of Commerce, 
                or a State agency implementing an endangered species 
                program for the purpose described in paragraph 
                (4)(A)(iii). For purposes of the preceding sentence, a 
                restriction which is granted for at least 20 years 
                shall be treated as granted in perpetuity.''
    (b) Protection of Endangered Species as Conservation Purpose.--
            (1) Subparagraph (A) of section 170(h)(4) of such Code is 
        amended by redesignating clauses (iii) and (iv) as clauses (iv) 
        and (v), respectively, and by inserting after clause (ii) the 
        following new clause:
                            ``(iii) the protection of a species 
                        designated endangered by the Secretary of the 
                        Interior, or the Secretary of Commerce, under 
                        the Endangered Species Act of 1973,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after the date of the enactment of this 
Act.

SEC. 5. CREDIT FOR COSTS OF COMPLIANCE WITH ENDANGERED SPECIES 
              CONSERVATION AGREEMENT.

    (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. 30A. COSTS OF COMPLIANCE WITH ENDANGERED SPECIES CONSERVATION 
              AGREEMENT.

    ``(a) In General.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to the 
endangered species conservation agreement costs paid or incurred by the 
taxpayer during the taxable year.
    ``(b) Endangered Species Conservation Agreement Costs.--For 
purposes of subsection (a), the term `endangered species conservation 
agreement costs' means expenses which would not have been incurred by 
the taxpayer but for an endangered species conservation agreement (as 
defined in section 2057(c) but without regard to paragraph (3) thereof) 
entered into by the taxpayer.
    ``(c) Application With Other Credits.--The credit allowed by 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and sections 27, 
        28, 29, and 30, over
            ``(2) the tentative minimum tax for the taxable year.''
    (b) Clerical Amendment.--The table of sections for such subpart B 
is amended by adding at the end the following new item:

                              ``Sec. 30A. Costs of compliance with 
                                        endangered species conservation 
                                        agreement.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.