I 

108TH CONGRESS 

1ST SESSION H. R. 1607

To amend the Internal Revenue Code of 1986 to allow a credit for 

contributions of real property interests for conservation purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 3, 2003

Mr. GOODE 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 allow a 

credit for contributions of real property interests for 

conservation purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Credits for Con5 servation Act of 2003’’. 

6 SEC. 2. CREDIT FOR CONSERVATION CONTRIBUTIONS OF 

7 REAL PROPERTY INTERESTS IN PERPETUITY. 

8 (a) IN GENERAL.—Subpart B of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 
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1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 30B. CREDIT FOR CONSERVATION CONTRIBUTIONS 

4 OF REAL PROPERTY INTERESTS IN PER5 PETUITY. 

6 ‘‘(a) IN GENERAL.—There shall be allowed as a cred7 it against the tax imposed by this chapter for the taxable 

8 year an amount equal to 50 percent of the aggregate quali9 fied conservation contributions in such taxable year of 

10 qualified real property interests located in the United 

11 States or any of its possessions for a conservation purpose 

12 specified in clause (i), (ii), or (iii) of section 170(h)(4)(A). 

13 ‘‘(b) LIMITATION.—The amount allowed as a credit 

14 under subsection (a) for a taxable year shall not exceed 

15 $100,000 ($50,000 for taxable years beginning in 2003 

16 and $75,000 for taxable years beginning in 2004). 

17 ‘‘(c) DEFINITIONS.—For purposes of this section, the 

18 terms ‘qualified conservation contribution’ and ‘qualified 

19 real property interest’ have the meanings given such terms 

20 by section 170(h). 

21 ‘‘(d) SPECIAL RULES.—For purposes of this sec22 tion—

23 ‘‘(1) CARRYOVER OF UNUSED CREDIT.—If the 

24 credit allowable under subsection (a) for a taxable 

25 year exceeds the limitation imposed by subsection 
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1 (b) for such taxable year, such excess shall be car2 ried over to the succeeding taxable year and added 

3 to the credit allowable under subsection (a) for such 

4 taxable year. No credit may be carried forward 

5 under this subsection to any taxable year following 

6 the fifth taxable year after the taxable year in which 

7 the credit arose. For purposes of the preceding sen8 tence, credits shall be treated as used on a first-in 

9 first-out basis. 

10 ‘‘(2) RELATED PERSONS.—

11 ‘‘(A) IN GENERAL.—The taxpayer and all 

12 persons related to the taxpayer shall be treated 

13 as one person. 

14 ‘‘(B) RELATED PERSON.—For purposes of 

15 subparagraph (A), a person is a related person 

16 to another person if—

17 ‘‘(i) the relationship between such per18 sons would result in a disallowance of 

19 losses under section 267 or 707(b), or 

20 ‘‘(ii) such persons are members of the 

21 same controlled group of corporations (as 

22 defined in section 1563(a), except that 

23 ‘more than 50 percent’ shall be substituted 

24 for ‘at least 80 percent’ each place it ap25 pears therein). 
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1 ‘‘(3) DENIAL OF DOUBLE BENEFIT.—In the 

2 case of the amount of the credit determined under 

3 this section, no deduction shall be allowed for such 

4 amount under any other provision of this title.’’. 

5 (b) CONFORMING AMENDMENT.—The table of sec6 tions for subpart B of part IV of subchapter A of chapter 

7 1 of such Code is amended by adding at the end the fol8 lowing new item:

‘‘Sec. 30B. Credit for conservation contributions of real property 

interests in perpetuity.’’.

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to contributions after December 

11 31, 2002.

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