I 

111TH CONGRESS 

1ST SESSION H. R. 3622 

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

construction of pond establishments for the purposes of non-commercial 

recreational fishing and conservation of water-based wildlife habitats. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 22, 2009 

Mr. BRIGHT 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 the construction of pond establishments for 

the purposes of non-commercial recreational fishing and 

conservation of water-based wildlife habitats. 

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 ‘‘Ponds and Water5 Based Conservation Act of 2009’’. 

6 SEC. 2. POND CONSTRUCTION CREDIT. 

7 (a) POND CONSTRUCTION CREDIT.—Subpart A of 

8 part IV of subchapter A of chapter 1 of the Internal RevVerDate Nov 24 2008 03:47 Sep 23, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3622.IH H3622

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1 enue Code of 1986 is amended by adding at the end the 

2 following new section: 

3 ‘‘SEC. 25E. POND CONSTRUCTION CREDIT. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in5 dividual, there shall be allowed as a credit against the tax 

6 imposed by this chapter for the taxable year an amount 

7 equal to 50 percent of qualified pond construction expendi8 tures. 

9 ‘‘(b) LIMITATIONS.—The amount allowed as a credit 

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

11 $50,000. 

12 ‘‘(c) QUALIFIED POND CONSTRUCTION EXPENDI13 TURES.—For purposes of this section— 

14 ‘‘(1) IN GENERAL.—The term ‘qualified pond 

15 construction expenditures’ means amounts paid or 

16 incurred to construct a body of water larger than 

17 one-half acre and smaller than 10 acres that serves 

18 to promote stormwater management and conserva19 tion or foster expansion of water-based habitat for 

20 wildlife or fish. 

21 ‘‘(2) LABOR COSTS.—For purposes of para22 graph (1), expenditures for labor costs properly allo23 cable to the onsite construction of such body of 

24 water shall be taken into account. 


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1 ‘‘(3) EXCEPTION FOR COMMERCIAL USES.— 

2 Such term does not include any amount paid or in3 curred with respect to commercial fishing. 

4 ‘‘(d) RECAPTURE OF CREDIT.— 

5 ‘‘(1) IN GENERAL.—The Secretary shall provide 

6 for the recapture of the credit allowed under this 

7 section in any case in which, before the close of the 

8 recapture period, the land with respect to which the 

9 qualified pond construction expenditures were paid 

10 or incurred is disposed of or otherwise ceases to sus11 tain water-based wildlife or fish. 

12 ‘‘(2) EXCEPTIONS.— 

13 ‘‘(A) DEATH OF TAXPAYER.—Paragraph 

14 (1) shall not apply to any taxable year ending 

15 after the date of the taxpayer’s death. 

16 ‘‘(B) INVOLUNTARY CONVERSION.—Para17 graph (1) shall not apply in the case of a prop18 erty which is compulsorily or involuntarily con19 verted (within the meaning of section 1033(a)). 

20 ‘‘(C) TRANSFERS BETWEEN SPOUSES OR

21 INCIDENT TO DIVORCE.—In the case of a trans22 fer of a property to which section 1041(a) ap23 plies— 

24 ‘‘(i) paragraph (1) shall not apply to 

25 such transfer, and 


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1 ‘‘(ii) in the case of taxable years end2 ing after such transfer, paragraph (1) shall 

3 apply to the transferee in the same manner 

4 as if such transferee were the transferor 

5 (and shall not apply to the transferor). 

6 ‘‘(3) RECAPTURE PERIOD.—For purposes of 

7 paragraph (1), the recapture period is the 10-taxable 

8 year period beginning with the taxable year after the 

9 taxable year for which a credit is allowed under sub10 section (a). 

11 ‘‘(e) CERTIFICATION.— 

12 ‘‘(1) YEAR OF CONSTRUCTION.—No amount 

13 shall be treated as a qualified pond construction ex14 penditure unless the taxpayer certifies that the body 

15 of water constructed pursuant to such expenditures 

16 meets the requirements of subsection (c)(1). 

17 ‘‘(2) RECAPTURE.—Recapture shall be required 

18 under subsection (d) for any year in the recapture 

19 period unless the taxpayer certifies that the taxpayer 

20 is in compliance with subsection (d). 

21 ‘‘(3) CERTIFICATION REQUIREMENTS.—A cer22 tification under this subsection shall be in such form 

23 and meet such requirements as the Secretary may 

24 require.’’. 


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1 (b) CONFORMING AMENDMENT.—The table of sec2 tions for subpart A of part IV of subchapter A of chapter 

3 1 of such Code is amended by inserting after the item 

4 relating to section 25D the following new item: 

‘‘Sec. 25E. Pond construction credit.’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2009. 

Æ 


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