I 

113TH CONGRESS 

1ST SESSION H. R. 2713 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

gain from the sale or grant of conservation easements and to allow 

the sale or grant of conservation easements in the case of the special 

estate tax valuation provisions for certain farm and other trade or business real property. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 17, 2013 

Mr. MEADOWS 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 exclude 

from gross income gain from the sale or grant of conservation easements and to allow the sale or grant of 

conservation easements in the case of the special estate 

tax valuation provisions for certain farm and other trade 

or business real property. 

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 ‘‘Capital Gains Ease5 ment Act of 2013’’. 

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1 SEC. 2. EXCLUSION OF GAIN FROM SALE OR GRANT FOR 

2 REAL PROPERTY CONSERVATION PURPOSES. 

3 (a) IN GENERAL.—Part III of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

5 by inserting before section 140 the following new section: 

6 ‘‘SEC. 139E. GAIN FROM SALE OR GRANT FOR CONSERVA7 TION PURPOSES. 

8 ‘‘(a) IN GENERAL.—Gross income shall not include 

9 any gain from the sale or grant of a qualified real property 

10 interest to a qualified organization exclusively for con11 servation purposes. 

12 ‘‘(b) DEFINITIONS.—For purposes of this section— 

13 ‘‘(1) QUALIFIED REAL PROPERTY INTEREST.— 

14 ‘‘(A) IN GENERAL.—The term ‘qualified 

15 real property interest’ means any of the fol16 lowing interests in real property: 

17 ‘‘(i) The entire interest of the tax18 payer. 

19 ‘‘(ii) A remainder interest. 

20 ‘‘(iii) A restriction (granted in per21 petuity) on the use which may be made of 

22 the real property. 

23 ‘‘(B) SPECIAL RULE FOR MINERAL INTER24 ESTS.—An interest in real property shall not 

25 fail to be treated as a qualified real property inmstockstill on DSK4VPTVN1PROD with BILLS

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1 terest solely by reason of a retention of a quali2 fied mineral interest. 

3 ‘‘(2) QUALIFIED ORGANIZATION; CONSERVA4 TION PURPOSES.—The terms ‘qualified organization’ 

5 and ‘conservation purpose’ shall have the respective 

6 meanings given such terms by section 170(h).’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for part III of subchapter B of chapter 1 of such Code 

9 is amended by inserting before the item relating to section 

10 140 the following new item: 

‘‘Sec. 139E. Gain from sale or grant of conservation easement.’’. 

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

12 this section shall apply to taxable years beginning after 

13 the date of the enactment of this Act. 

14 SEC. 3. SALE OF CONSERVATION EASEMENT NOT A DIS15 POSITION FOR PURPOSES OF SPECIAL ES16 TATE TAX REAL ESTATE VALUATION RULES. 

17 (a) IN GENERAL.—Paragraph (8) of section 

18 2032A(c) of the Internal Revenue Code of 1986 is amend19 ed by inserting ‘‘or a sale or grant to which section 139E 

20 applies’’ after ‘‘by gift or otherwise’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to sales or grants after the date 

23 of the enactment of this Act. 

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