I 

111TH CONGRESS 

2D SESSION H. R. 5475 

To amend the Internal Revenue Code of 1986 to exempt certain farmland 

from the estate tax, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 28, 2010 

Mr. THOMPSON of California (for himself, Mr. SALAZAR, Mr. MCCARTHY of 

California, Mr. BLUMENAUER, Mr. CARDOZA, Mr. COSTA, Mr. FARR, Mr. 

MANZULLO, Mr. ELLSWORTH, Mrs. CAPPS, Mr. KRATOVIL, Mr. 

CUELLAR, Mr. KIND, Ms. ESHOO, Mr. RADANOVICH, Mr. CONAWAY, Mr. 

GARAMENDI, Mr. BERRY, Ms. MATSUI, Ms. HERSETH SANDLIN, Mr. 

SIMPSON, and Mr. MINNICK) 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 exempt 

certain farmland from the estate tax, and for other 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Family Farm Estate 

5 Tax Relief Act of 2010’’. 


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1 SEC. 2. EXCLUSION FROM GROSS ESTATE OF CERTAIN 

2 FARMLAND SO LONG AS FARMLAND USE 

3 CONTINUES. 

4 (a) IN GENERAL.—Part III of subchapter A of chap5 ter 11 of the Internal Revenue Code of 1986 (relating to 

6 gross estate) is amended by inserting after section 2033 

7 the following new section: 

8 ‘‘SEC. 2033A. EXCLUSION OF CERTAIN FARMLAND SO LONG 

9 AS USE AS FARMLAND CONTINUES. 

10 ‘‘(a) IN GENERAL.—In the case of an estate of a de11 cedent to which this section applies, the value of the gross 

12 estate shall not include the adjusted value of qualified 

13 farmland included in the estate. 

14 ‘‘(b) ESTATES TO WHICH SECTION APPLIES.—This 

15 section shall apply to an estate if— 

16 ‘‘(1) the executor elects the application of this 

17 section and files an agreement referred to in section 

18 2032A(d)(2), and 

19 ‘‘(2) the decedent was (at the date of the dece20 dent’s death) a citizen or resident of the United 

21 States. 

22 ‘‘(c) DEFINITIONS.—For purposes of this section— 

23 ‘‘(1) QUALIFIED FARMLAND.—The term ‘quali24 fied farmland’ means any real property which— 

25 ‘‘(A) is located in the United States, 


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1 ‘‘(B) is used as a farm for farming pur2 poses (within the meaning of section 2032A(e)), 

3 ‘‘(C) was acquired from or passed from the 

4 decedent to a qualified heir of the decedent and 

5 which, on the date of the decedent’s death, was 

6 being so used by the decedent or a member of 

7 the decedent’s family, and 

8 ‘‘(D) is property designated in the agree9 ment filed under subsection (b)(1). 

10 ‘‘(2) OTHER TERMS.—Any other term used in 

11 this section which is also used in section 2032A shall 

12 have the same meaning given such term by section 

13 2032A. 

14 ‘‘(d) TAX TREATMENT OF DISPOSITIONS AND FAIL15 URES TO USE FOR FARMING PURPOSES.— 

16 ‘‘(1) IMPOSITION OF RECAPTURE TAX.—If, at 

17 any time after the decedent’s death and before the 

18 death of the qualified heir— 

19 ‘‘(A) the qualified heir disposes of any in20 terest in qualified farmland (other than by a 

21 disposition to a member of his family), or 

22 ‘‘(B) the qualified heir ceases to use the 

23 real property which was acquired (or passed) 

24 from the decedent as a farm for farming pur25 poses, 


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1 then, there is hereby imposed a recapture tax. 

2 ‘‘(2) AMOUNT OF RECAPTURE TAX, ETC.— 

3 ‘‘(A) IN GENERAL.—Except as provided in 

4 subparagraph (B), rules similar to the rules of 

5 section 2032A(c) (other than paragraph (2)(E) 

6 thereof) with respect to the additional estate 

7 tax shall apply for purposes of this subsection 

8 with respect to the recapture tax. 

9 ‘‘(B) ADJUSTMENT OF RECAPTURE TAX TO

10 REFLECT INCREASE IN VALUE OF FARM11 LAND.—The amount of the recapture tax other12 wise determined under rules described in sub13 paragraph (A) shall be increased by the per14 centage (if any) by which the value of the inter15 est in the qualified farmland at the time of the 

16 imposition of such tax is greater than the ad17 justed value of such farmland included in the 

18 estate. 

19 ‘‘(e) APPLICATION OF OTHER RULES.—Rules similar 

20 to the rules of subsections (d), (e) (other than paragraph 

21 (13) thereof), (f), (g), (h), and (i) of section 2032A shall 

22 apply for purposes of this section.’’. 

23 (b) APPLICATION OF LIEN.—Section 6324B of the 

24 Internal Revenue Code of 1986 (relating to special lien 

25 for additional estate tax attributable to farm, etc., valuVerDate Mar 15 2010 23:41 Jun 02, 2010 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5475.IH H5475

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1 ation) is amended by adding at the end the following new 

2 subsection: 

3 ‘‘(e) APPLICATION TO QUALIFIED FARMLAND.— 

4 ‘‘(1) IN GENERAL.—In the case of any interest 

5 in qualified farmland (within the meaning of section 

6 2033A(c)(1)), this section shall apply in the same 

7 manner as such section applies to qualified real 

8 property. 

9 ‘‘(2) FORM AND CONTENT.—In addition to any 

10 form and content otherwise required by the Sec11 retary with respect to a notice of lien filed against 

12 qualified farmland, such notice shall include a state13 ment that such lien is imposed solely for purposes of 

14 the estate tax exclusion granted with respect to such 

15 qualified farmland under section 2033A.’’. 

16 (c) WOODLANDS SUBJECT TO MANAGEMENT

17 PLAN.—Paragraph (2) of section 2032A(c) of such Code 

18 is amended by adding at the end the following new sub19 paragraph: 

20 ‘‘(F) EXCEPTION FOR WOODLANDS SUB21 JECT TO FOREST STEWARDSHIP PLAN.— 

22 ‘‘(i) IN GENERAL.—Subparagraph (E) 

23 shall not apply to any disposition or sever24 ance of standing timber on a qualified 

25 woodland that is made pursuant to a forest 


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1 stewardship plan developed under the Co2 operative Forestry Assistance Act of 1978 

3 (16 U.S.C. 2103a) or an equivalent plan 

4 approved by the State Forester. 

5 ‘‘(ii) COMPLIANCE WITH FOREST

6 STEWARDSHIP PLAN.—Clause (i) shall not 

7 apply if, during the 10-year period under 

8 paragraph (1), the qualified heir fails to 

9 comply with such forest stewardship plan 

10 or equivalent plan.’’. 

11 (d) CERTAIN CONSERVATION TRANSACTIONS NOT

12 TREATED AS DISPOSITIONS.—Paragraph (8) of section 

13 2032A(c) of such Code is amended to read as follows: 

14 ‘‘(8) CERTAIN CONSERVATION TRANSACTIONS

15 NOT TREATED AS DISPOSITIONS.— 

16 ‘‘(A) QUALIFIED CONSERVATION CON17 TRIBUTIONS.—A qualified conservation con18 tribution by gift or otherwise shall not be 

19 deemed a disposition under subsection 

20 (c)(1)(A). 

21 ‘‘(B) QUALIFIED CONSERVATION EASE22 MENT SOLD TO QUALIFIED ORGANIZATION.—A 

23 sale of a qualified conservation easement to a 

24 qualified organization shall not be deemed a 

25 disposition under subsection (c)(1)(A). 


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1 ‘‘(C) DEFINITIONS.—For purposes of this 

2 paragraph— 

3 ‘‘(i) the terms ‘qualified conservation 

4 contribution’ and ‘qualified organization’ 

5 have the meanings given such terms by 

6 section 170(h), and 

7 ‘‘(ii) the term ‘qualified conservation 

8 easement’ has the meaning given such 

9 term by section 2031(c)(8).’’. 

10 (e) CLERICAL AMENDMENT.—The table of sections 

11 for part III of subchapter A of chapter 11 of the Internal 

12 Revenue Code of 1986 is amended by inserting after the 

13 item relating to section 2033 the following new item: 

‘‘Sec. 2033A. Exclusion of certain farmland so long as use as farmland continues.’’. 

14 (f) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to estates of decedents dying after 

16 the date of the enactment of this Act. 

17 SEC. 3. INCREASE IN LIMITATIONS ON THE AMOUNT EX18 CLUDED FROM THE GROSS ESTATE WITH RE19 SPECT TO LAND SUBJECT TO A QUALIFIED 

20 CONSERVATION EASEMENT. 

21 (a) INCREASE IN DOLLAR LIMITATION ON EXCLU22 SION.—Paragraph (3) of section 2031(c) of the Internal 

23 Revenue Code of 1986 (relating to exclusion limitation) 

24 is amended by striking ‘‘the exclusion limitation is’’ and 


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1 all that follows and inserting ‘‘the exclusion limitation is 

2 $5,000,000.’’. 

3 (b) INCREASE IN PERCENTAGE OF VALUE OF LAND

4 WHICH IS EXCLUDABLE.—Paragraph (2) of section 

5 2031(c) of the Internal Revenue Code of 1986 (relating 

6 to applicable percentage) is amended— 

7 (1) by striking ‘‘40 percent’’ and inserting ‘‘50 

8 percent’’, and 

9 (2) by striking ‘‘2 percentage points’’ and in10 serting ‘‘2.5 percentage points’’. 

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

12 this section shall apply to the estates of decedents dying 

13 after the date of the enactment of this Act. 

Æ 


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