I

107TH CONGRESS

1ST SESSION H. R. 1486

To amend the Internal Revenue Code of 1986 to encourage qualified conservation contributions by allowing an estate tax deduction for such contributions made by the heirs of the estate.

IN THE HOUSE OF REPRESENTATIVES

APRIL 4, 2001

Ms. LOFGREN (for herself, Mr. HONDA, and Mr. PRICE of North Carolina)

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

qualified conservation contributions by allowing an estate

tax deduction for such contributions made by the heirs

of the estate.

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

3 SECTION 1. CERTAIN GIFTS BY HEIRS OF DECEDENT AL4 LOWED AS DEDUCTION IN DETERMINING

5 TAXABLE ESTATE OF DECEDENT.

6 (a) IN GENERAL.—Section 2055 of the Internal Rev7 enue Code of 1986 (relating to transfers for public, chari8 table, and religious uses) is amended by redesignating sub-
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1 section (g) as subsection (h) and by inserting after sub2 section (f) the following new subsection:

3 ‘‘(g) CERTAIN GIFTS BY HEIRS OF DECEDENT AL4 LOWED AS DEDUCTION.—

5 ‘‘(1) IN GENERAL.—In the case of real property

6 acquired from or passed from a decedent, if each

7 person in being who has an interest (whether or not

8 in possession) in such property files, with the return

9 of tax imposed by this chapter on such decedent—

10 ‘‘(A) a signed statement indicating such

11 person’s intent to make (within a reasonable pe12 riod) a contribution of such property (or a re13 mainder interest therein) to a qualified organi14 zation (as defined in section 170(h)(3)) exclu15 sively for conservation purposes (as defined in

16 section 170(h)(4)), and

17 ‘‘(B) an election to have this subsection

18 apply to such property (or interest),

19 such contribution shall be treated for purposes of

20 this title as having been made as a bequest or devise

21 directly from the estate of such decedent.

22 ‘‘(2) RETURN MUST BE TIMELY FILED.—Para23 graph (1) shall not apply unless the return is filed

24 on or before the due date (including extensions).
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1 ‘‘(3) STATUTE OF LIMITATIONS OPEN UNTIL

2 AFTER CONTRIBUTION IS MADE.—If any person

3 elects to have this subsection apply to any property,

4 then—

5 ‘‘(A) the statutory period for the assess6 ment of any deficiency attributable to such

7 property shall not expire before the expiration

8 of 3 years from the date the Secretary is noti9 fied by such person (in such manner as the Sec10 retary may prescribe) of—

11 ‘‘(i) the transfer of such property in a

12 contribution described in paragraph

13 (1)(A), or

14 ‘‘(ii) such person’s intention not to

15 make such a transfer, and

16 ‘‘(B) such deficiency may be assessed be17 fore the expiration of such 3-year period not18 withstanding the provisions of any other law or

19 rule of law which would otherwise prevent such

20 assessment.

21 ‘‘(4) MODIFICATIONS.—Rules similar to the

22 rules which apply under section 2032A(d)(3) shall

23 apply for purposes of this subsection.’’

24 (b) EFFECTIVE DATE.—The amendment made by

25 this section shall take effect as if included in the amend-
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1 ments made by section 508 of the Taxpayer Relief Act

2 of 1997. The heirs of all estates subject to such section

3 508 for which an estate tax return was timely filed by

4 the due date (including extensions) shall have 1 year from

5 the date of enactment of this Act to comply with the re6 quirements of section 2055(g) of the Internal Revenue

7 Code of 1986, as added by this section.

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