I 

109TH CONGRESS 

2D SESSION H. R. 5056 

To amend the Internal Revenue Code of 1986 to encourage charitable 

contributions of real property for conservation purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 30, 2006 

Mr. FITZPATRICK of Pennsylvania (for himself, Mr. GERLACH, Mr. SIMMONS, 

and Mr. BLUMENAUER) 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 encourage 

charitable contributions of real property for conservation 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. ENCOURAGEMENT OF CONTRIBUTIONS OF 

4 CAPITAL GAIN REAL PROPERTY MADE FOR 

5 CONSERVATION PURPOSES. 

6 (a) IN GENERAL.— 

7 (1) INDIVIDUALS.—Paragraph (1) of subsection 

8 170(b) of the Internal Revenue Code of 1986 (relat9 ing to percentage limitations) is amended by redesigVerDate Aug 31 2005 21:13 Apr 03, 2006 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5056.IH H5056

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1 nating subparagraphs (E) and (F) as subparagraphs 

2 (F) and (G), respectively, and by inserting after sub3 paragraph (D) the following new subparagraph: 

4 ‘‘(E) CONTRIBUTIONS OF QUALIFIED CON5 SERVATION CONTRIBUTIONS.— 

6 ‘‘(i) IN GENERAL.—Any qualified con7 servation contribution (as defined in sub8 section (h)(1)) to an organization described 

9 in subparagraph (A) shall be allowed to 

10 the extent the aggregate of such contribu11 tions does not exceed the excess of 50 per12 cent of the taxpayer’s contribution base 

13 over the amount of all other charitable 

14 contributions allowable under this para15 graph. 

16 ‘‘(ii) CARRYOVER.—If the aggregate 

17 amount of contributions described in clause 

18 (i) exceeds the limitation of clause (i), such 

19 excess shall be treated (in a manner con20 sistent with the rules of subsection (d)(1)) 

21 as a charitable contribution to which clause 

22 (i) applies in each of the 15 succeeding 

23 years in order of time. 

24 ‘‘(iii) COORDINATION WITH OTHER

25 SUBPARAGRAPHS.—For purposes of applyVerDate Aug 31 2005 21:13 Apr 03, 2006 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5056.IH H5056

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1 ing this subsection and subsection (d)(1), 

2 contributions described in clause (i) shall 

3 not be treated as described in subpara4 graph (A), (B), (C), or (D). 

5 ‘‘(iv) QUALIFIED FARMER OR RANCH6 ER.— 

7 ‘‘(I) IN GENERAL.—If the indi8 vidual is a qualified farmer or rancher 

9 for the taxable year in which the con10 tribution is made, clause (i) shall be 

11 applied by substituting ‘100 percent’ 

12 for ‘50 percent’. 

13 ‘‘(II) DEFINITION.—For pur14 poses of subclause (I), the term ‘quali15 fied farmer or rancher’ means a tax16 payer whose gross income from the 

17 trade or business of farming (within 

18 the meaning of section 2032A(e)(5)) 

19 is greater than 50 percent of the tax20 payer’s gross income for the taxable 

21 year.’’. 

22 (2) CORPORATIONS.—Paragraph (2) of section 

23 170(b) of such Code is amended to read as follows: 

24 ‘‘(2) CORPORATIONS.—In the case of a corpora25 tion— 


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1 ‘‘(A) IN GENERAL.—The total deductions 

2 under subsection (a) for any taxable year (other 

3 than for contributions to which subparagraph 

4 (B) applies) shall not exceed 10 percent of the 

5 taxpayer’s taxable income. 

6 ‘‘(B) QUALIFIED CONSERVATION CON7 TRIBUTIONS BY CERTAIN CORPORATE FARMERS

8 AND RANCHERS.— 

9 ‘‘(i) IN GENERAL.—Any qualified con10 servation contribution (as defined in sub11 section (h)(1)) made— 

12 ‘‘(I) by a corporation which, for 

13 the taxable year during which the con14 tribution is made, is a qualified farm15 er or rancher (as defined in paragraph 

16 (1)(E)(iv)(II)) and the stock of which 

17 is not readily tradable on an estab18 lished securities market at any time 

19 during such year, and 

20 ‘‘(II) to an organization de21 scribed in paragraph (1)(A), shall be 

22 allowed to the extent the aggregate of 

23 such contributions does not exceed the 

24 excess of the taxpayer’s taxable in25 come over the amount of charitable 


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1 contributions allowable under sub2 paragraph (A). 

3 ‘‘(ii) CARRYOVER.—If the aggregate 

4 amount of contributions described in clause 

5 (i) exceeds the limitation of clause (i), such 

6 excess shall be treated (in a manner con7 sistent with the rules of subsection (d)(2)) 

8 as a charitable contribution to which clause 

9 (i) applies in each of the 15 succeeding 

10 years in order of time. 

11 ‘‘(C) TAXABLE INCOME.—For purposes of 

12 this paragraph, taxable income shall be com13 puted without regard to— 

14 ‘‘(i) this section, 

15 ‘‘(ii) part VIII (except section 248), 

16 ‘‘(iii) any net operating loss 

17 carrryback to the taxable year under sec18 tion 172, 

19 ‘‘(iv) section 199, and 

20 ‘‘(v) any capital loss carryback to the 

21 taxable year under section 1212(a)(1).’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) The second sentence of clause (i) of section 

24 170(b)(1)(C) of such Code is amended by striking 


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1 ‘‘subparagraph (D)’’ and inserting ‘‘subparagraph 

2 (D) or (E)’’. 

3 (2) Clause (i) of section 170(b)(1)(D) of such 

4 Code is amended by striking ‘‘subparagraph (A)’’ 

5 and inserting ‘‘subparagraphs (A) or (E)’’. 

6 (3) Paragraph (2) of section 170(d) of such 

7 Code is amended by striking ‘‘subsection (b)(2)’’ 

8 each place it appears and inserting ‘‘subsection 

9 (b)(2)(A)’’. 

10 (4) Section 545(b)(2) of such Code is amended 

11 by striking ‘‘and (D)’’ and inserting ‘‘(D), and (E)’’. 

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

13 this section shall apply to contributions made in taxable 

14 years beginning after December 31, 2005, and before Jan15 uary 1, 2008. 

Æ 


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