I 

111TH CONGRESS 

1ST SESSION H. R. 1447 

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

gain on the sale or exchange of farmland development rights. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 11, 2009 

Mr. PITTS (for himself, Mrs. MYRICK, Ms. BALDWIN, Mr. PAUL, and Mr. 

GERLACH) 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 on the sale or exchange of farmland development rights. 

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 ‘‘Family Farm Preser5 vation Act of 2009’’. 

6 SEC. 2. EXCLUSION OF GAIN FROM SALE OF FARMLAND DE7 VELOPMENT RIGHTS. 

8 (a) GENERAL RULE.—Part III of subchapter B of 

9 chapter 1 of the Internal Revenue Code of 1986 (relating 


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1 to items specifically excluded from gross income) is 

2 amended by inserting after section 139C the following new 

3 section: 

4 ‘‘SEC. 139D. SALES AND EXCHANGES OF FARMLAND DEVEL5 OPMENT RIGHTS TO QUALIFIED CONSERVA6 TION ORGANIZATION. 

7 ‘‘(a) GENERAL RULE.—In the case of the owner of 

8 eligible farmland, gross income does not include gain from 

9 the sale or exchange of qualified farmland development 

10 rights to a qualified conservation organization. 

11 ‘‘(b) QUALIFIED FARMLAND DEVELOPMENT

12 RIGHTS.—For purposes of subsection (a)— 

13 ‘‘(1) IN GENERAL.—The term ‘qualified farm14 land development rights’ means a restriction (grant15 ed in perpetuity) with respect to eligible farmland 

16 which does not permit any use of such farmland for 

17 any purpose other than use as a farm for farming 

18 purposes (within the meaning of section 2032A(e)) 

19 or for exclusively conservation purposes (within the 

20 meaning of section 170(h)(5)). 

21 ‘‘(2) FARM AND FARMING PURPOSES.—The 

22 terms ‘farm’ and ‘farming purposes’ have the mean23 ings given such terms by section 2032A(e). 

24 ‘‘(3) ELIGIBLE FARMLAND.—The term ‘eligible 

25 farmland’ means any real property— 


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1 ‘‘(A) which is located in the United States, 

2 ‘‘(B) which is used as a farm for farming 

3 purposes (within the meaning of section 

4 2032A(e)), and 

5 ‘‘(C) which is located in a county which 

6 has a population of 100 or more persons per 

7 square mile. 

8 ‘‘(c) QUALIFIED CONSERVATION ORGANIZATION.— 

9 For purposes of this section, the term ‘qualified conserva10 tion organization’ means, with respect to any taxable year, 

11 an organization described in section 170(h)(3) and orga12 nized to serve primarily conservation purposes (as defined 

13 in section 170(h)(4)). 

14 ‘‘(d) REGULATIONS.—The Secretary may prescribe 

15 such regulations as may be necessary or appropriate to 

16 carry out this section, including regulations providing 

17 for— 

18 ‘‘(1) a recapture of the benefit of the exclusion 

19 from gross income under subsection (a) if the quali20 fied farmland development rights are extinguished in 

21 a subsequent taxable year, and 

22 ‘‘(2) interest at the underpayment rate estab23 lished under section 6621 on the amount determined 

24 pursuant to paragraph (1) for each prior taxable 


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1 year for the period beginning on the due date for fil2 ing the return for the prior taxable year involved. 

3 No deduction shall be allowed under this chapter for inter4 est described in paragraph (2).’’. 

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

6 for such part is amended by striking the last item and 

7 inserting the following new item: 

‘‘Sec. 139D. Sales and exchanges of farmland development rights to qualified 

conservation organization.’’. 

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

9 this section shall apply to sales and exchanges after the 

10 date of the enactment of this Act. 

Æ 


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