II 

116TH CONGRESS 

2D SESSION S. 4751 

To amend the Internal Revenue Code of 1986 to limit the charitable deduction 

for certain qualified conservation contributions. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 29, 2020 

Mr. DAINES (for himself, Mr. GRASSLEY, and Mr. ROBERTS) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to limit the 

charitable deduction for certain qualified conservation 

contributions. 

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 ‘‘Charitable Conserva5 tion Easement Program Integrity Act of 2020’’. 


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1 SEC. 2. LIMITATION ON DEDUCTION FOR QUALIFIED CON2 SERVATION CONTRIBUTIONS MADE BY PASS3 THROUGH ENTITY. 

4 (a) IN GENERAL.—Section 170(h) of the Internal 

5 Revenue Code of 1986 is amended by adding at the end 

6 the following new paragraph: 

7 ‘‘(7) LIMITATION ON DEDUCTION FOR QUALI8 FIED CONSERVATION CONTRIBUTIONS MADE BY

9 PASS-THROUGH ENTITY.— 

10 ‘‘(A) IN GENERAL.—In the case of any 

11 qualified conservation contribution of any part12 nership, no amount of such contribution may be 

13 taken into account under this section by any 

14 partner of such partnership as a distributive 

15 share of such contribution if the aggregate 

16 amount so taken into account by such partner 

17 for the taxable year would (but for this para18 graph) exceed 2.5 times the portion of the ad19 justed basis of such partner’s interest in such 

20 partnership (determined immediately before 

21 such contribution and without regard to section 

22 752) which is allocable (under rules similar to 

23 the rules of section 755) to the qualified real 

24 property interest with respect to which such 

25 contribution is made. 


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1 ‘‘(B) LIMITATION TO FIRST-TIER PART2 NERSHIPS.—Except as may be otherwise pro3 vided by the Secretary, no distributive share of 

4 a qualified conservation contribution shall be 

5 taken into account under this section if the in6 terest in the partnership making the contribu7 tion is held through one or more partnerships 

8 or pass-through entities. 

9 ‘‘(C) EXCEPTION FOR CONTRIBUTIONS

10 OUTSIDE 3-YEAR HOLDING PERIOD.—Subpara11 graphs (A) and (B) shall not apply to a part12 ner’s distributive share of a qualified conserva13 tion contribution if such contribution is made— 

14 ‘‘(i) at least 3 years after the date the 

15 partnership acquired the entirety of the 

16 qualified real property interest with respect 

17 to which such contribution is made, and 

18 ‘‘(ii) at least 3 years after the date 

19 the partner acquired the partner’s entire 

20 interest in the partnership with respect to 

21 which such distributive share is determined 

22 (including, for purposes of subparagraph 

23 (B), any such interest held through one or 

24 more partnerships or pass-through enti25 ties). 


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1 ‘‘(D) EXCEPTION FOR FAMILY PARTNER2 SHIPS.—This paragraph shall not apply with 

3 respect to any partnership if substantially all of 

4 the partnership interests in such partnership 

5 are held by individuals who are related within 

6 the meaning of section 152(d)(2). 

7 ‘‘(E) APPLICATION TO OTHER PASS8 THROUGH ENTITIES.—Except as may be other9 wise provided by the Secretary, rules similar to 

10 the rules of this paragraph shall apply with re11 spect to qualified conservation contributions of 

12 S corporations and other pass-through entities. 

13 ‘‘(F) REGULATIONS.—The Secretary shall 

14 prescribe such regulations or other guidance as 

15 may be necessary to carry out, and prevent the 

16 avoidance of, the purposes of this paragraph.’’. 

17 (b) EFFECTIVE DATE.— 

18 (1) IN GENERAL.—Except as otherwise pro19 vided in paragraph (2), this section shall apply to 

20 contributions made in taxable years ending after De21 cember 23, 2016. No inference is intended as to the 

22 appropriate treatment of contributions made in tax23 able years ending on or before such date or as to 

24 any activity not described in section 170(h)(7) of the 


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•S 4751 IS

1 Internal Revenue Code of 1986, as added by this 

2 section. 

3 (2) LIMITATION TO FIRST-TIER PARTNER4 SHIPS.—Subparagraph (B) of section 170(h)(7) of 

5 the Internal Revenue Code of 1986, as added by this 

6 section, shall apply to contributions made after the 

7 date of the enactment of this Act. 

Æ 


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