I 

116TH CONGRESS 

2D SESSION H. R. 8842 

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

for certain qualified conservation contributions. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 2, 2020 

Mr. THOMPSON of California (for himself and Mr. KELLY of Pennsylvania) 

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 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 ENTITIES. 

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 ENTITIES.— 

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

11 qualified conservation contribution of any part12 nership (whether directly or as a distributive 

13 share of such contribution of another partner14 ship), no amount of such contribution may be 

15 taken into account under this section by any 

16 partner of such partnership as a distributive 

17 share of such contribution if the aggregate 

18 amount so taken into account by such partner 

19 for the taxable year would (but for this para20 graph) exceed 2.5 times the portion of the ad21 justed basis of such partner’s interest in such 

22 partnership (determined immediately before 

23 such contribution and without regard to section 

24 752) which is allocable (under rules similar to 

25 the rules of section 755) to the qualified real 


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1 property interest with respect to which such 

2 contribution is made. 

3 ‘‘(B) EXCEPTION FOR CONTRIBUTIONS

4 OUTSIDE 3-YEAR HOLDING PERIOD.—Subpara5 graph (A) shall not apply to a partner’s dis6 tributive share of a qualified conservation con7 tribution if such contribution is made— 

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

9 partnership acquired the entirety of the 

10 qualified real property interest with respect 

11 to which such contribution is made, 

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

13 the partner acquired the partner’s entire 

14 interest in the partnership with respect to 

15 which such distributive share is deter16 mined, and 

17 ‘‘(iii) if the interest in the partnership 

18 making such contribution is held through 

19 one or more partnerships, at least 3 years 

20 after each such partnership acquired the 

21 entirety of the interest in any such part22 nership with respect to which such dis23 tributive share is determined. 

24 ‘‘(C) EXCEPTION FOR FAMILY PARTNER25 SHIPS.—Subparagraph (A) shall not apply with 


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1 respect to any qualified conservation contribu2 tion made by any partnership if substantially all 

3 of the partnership interests in such partnership 

4 are held by individuals who are related within 

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

6 ‘‘(D) APPLICATION TO OTHER PASS7 THROUGH ENTITIES.—Except as may be other8 wise provided by the Secretary, the rules of this 

9 paragraph shall apply to S corporations and 

10 other pass-through entities in the same manner 

11 as such rules apply to partnerships. 

12 ‘‘(E) REGULATIONS.—The Secretary shall 

13 prescribe such regulations or other guidance as 

14 may be necessary to carry out, and prevent the 

15 avoidance of, the purposes of this paragraph, 

16 including, in the case of tiered partnerships, 

17 such reporting to the Secretary and among such 

18 partnerships as the Secretary determines appro19 priate.’’. 

20 (b) EFFECTIVE DATE.— 

21 (1) IN GENERAL.—Except as provided in para22 graph (2), the amendment made by this section shall 

23 apply to contributions made in taxable years ending 

24 after December 23, 2016. 


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1 (2) CERTIFIED HISTORIC STRUCTURES.—In the 

2 case of contributions the conservation purpose (as 

3 defined in section 170(h)(4) of the Internal Revenue 

4 Code of 1986) of which is the preservation of a cer5 tified historic structure (as defined in section 

6 170(h)(4)(C) of such Code), the amendment made 

7 by this section shall apply to contributions made in 

8 taxable years beginning after December 31, 2018. 

9 (3) NO INFERENCE.—No inference is intended 

10 as to the appropriate treatment of contributions 

11 made in taxable years ending on or before the date 

12 specified in paragraph (1) or (2), whichever is appli13 cable, or as to any activity not described in section 

14 170(h)(7) of the Internal Revenue Code of 1986, as 

15 added by this section. 

Æ 


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