To amend the Internal Revenue Code of 1986 to encourage charitable contributions of real property for conservation purposes.

SECTION 1. ENCOURAGEMENT OF CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY 
              MADE FOR CONSERVATION PURPOSES.

    (a) In General.--
            (1) Individuals.--Paragraph (1) of subsection 170(b) of the 
        Internal Revenue Code of 1986 (relating to percentage 
        limitations) is amended by redesignating subparagraphs (E) and 
        (F) as subparagraphs (F) and (G), respectively, and by 
        inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) Contributions of qualified conservation 
                contributions.--
                            ``(i) In general.--Any qualified 
                        conservation contribution (as defined in 
                        subsection (h)(1)) to an organization described 
                        in subparagraph (A) shall be allowed to the 
                        extent the aggregate of such contributions does 
                        not exceed the excess of 50 percent of the 
                        taxpayer's contribution base over the amount of 
                        all other charitable contributions allowable 
                        under this paragraph.
                            ``(ii) Carryover.--If the aggregate amount 
                        of contributions described in clause (i) 
                        exceeds the limitation of clause (i), such 
                        excess shall be treated (in a manner consistent 
                        with the rules of subsection (d)(1)) as a 
                        charitable contribution to which clause (i) 
                        applies in each of the 15 succeeding years in 
                        order of time.
                            ``(iii) Coordination with other 
                        subparagraphs.--For purposes of applying this 
                        subsection and subsection (d)(1), contributions 
                        described in clause (i) shall not be treated as 
                        described in subparagraph (A), (B), (C), or 
                        (D).
                            ``(iv) Qualified farmer or rancher.--
                                    ``(I) In general.--If the 
                                individual is a qualified farmer or 
                                rancher for the taxable year in which 
                                the contribution is made, clause (i) 
                                shall be applied by substituting `100 
                                percent' for `50 percent'.
                                    ``(II) Definition.--For purposes of 
                                subclause (I), the term `qualified 
                                farmer or rancher' means a taxpayer 
                                whose gross income from the trade or 
                                business of farming (within the meaning 
                                of section 2032A(e)(5)) is greater than 
                                50 percent of the taxpayer's gross 
                                income for the taxable year.''.
            (2) Corporations.--Paragraph (2) of section 170(b) of such 
        Code is amended to read as follows:
            ``(2) Corporations.--In the case of a corporation--
                    ``(A) In general.--The total deductions under 
                subsection (a) for any taxable year (other than for 
                contributions to which subparagraph (B) applies) shall 
                not exceed 10 percent of the taxpayer's taxable income.
                    ``(B) Qualified conservation contributions by 
                certain corporate farmers and ranchers.--
                            ``(i) In general.--Any qualified 
                        conservation contribution (as defined in 
                        subsection (h)(1)) made--
                                    ``(I) by a corporation which, for 
                                the taxable year during which the 
                                contribution is made, is a qualified 
                                farmer or rancher (as defined in 
                                paragraph (1)(E)(iv)(II)) and the stock 
                                of which is not readily tradable on an 
                                established securities market at any 
                                time during such year, and
                                    ``(II) to an organization described 
                                in paragraph (1)(A), shall be allowed 
                                to the extent the aggregate of such 
                                contributions does not exceed the 
                                excess of the taxpayer's taxable income 
                                over the amount of charitable 
                                contributions allowable under 
                                subparagraph (A).
                            ``(ii) Carryover.--If the aggregate amount 
                        of contributions described in clause (i) 
                        exceeds the limitation of clause (i), such 
                        excess shall be treated (in a manner consistent 
                        with the rules of subsection (d)(2)) as a 
                        charitable contribution to which clause (i) 
                        applies in each of the 15 succeeding years in 
                        order of time.
                    ``(C) Taxable income.--For purposes of this 
                paragraph, taxable income shall be computed without 
                regard to--
                            ``(i) this section,
                            ``(ii) part VIII (except section 248),
                            ``(iii) any net operating loss carrryback 
                        to the taxable year under section 172,
                            ``(iv) section 199, and
                            ``(v) any capital loss carryback to the 
                        taxable year under section 1212(a)(1).''.
    (b) Conforming Amendments.--
            (1) The second sentence of clause (i) of section 
        170(b)(1)(C) of such Code is amended by striking ``subparagraph 
        (D)'' and inserting ``subparagraph (D) or (E)''.
            (2) Clause (i) of section 170(b)(1)(D) of such Code is 
        amended by striking ``subparagraph (A)'' and inserting 
        ``subparagraphs (A) or (E)''.
            (3) Paragraph (2) of section 170(d) of such Code is amended 
        by striking ``subsection (b)(2)'' each place it appears and 
        inserting ``subsection (b)(2)(A)''.
            (4) Section 545(b)(2) of such Code is amended by striking 
        ``and (D)'' and inserting ``(D), and (E)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2005, and before January 1, 2008.

Summary: Amends the Internal Revenue Code to allow: (1) taxpayers making charitable contributions of real property for conservation purposes to deduct up to 50 of their income for such contributions. And (2) a 15-year carryover of excess tax deduction amounts for such contributions.