I
107TH CONGRESS
1ST SESSION
H. R. 110
To amend the Internal Revenue Code of 1986 to provide a credit against
income tax for certain charitable conservation contributions of land by
small farmers and ranchers, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 3, 2001
Mr. HEFLEY 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 provide
a credit against income tax for certain charitable con-
servation contributions of land by small farmers and
ranchers, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Private Land Con-
servation Tax Act’’.
SEC. 2. CREDIT FOR CERTAIN CHARITABLE CONSERVATION
CONTRIBUTIONS OF LAND BY SMALL FARM-
ERS AND RANCHERS.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to foreign tax credit, etc.) is amended by
adding at the end the following:
‘‘SEC. 30B. PRIVATE LAND CONSERVATION.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible farmer or rancher, there shall be allowed as a credit
against the tax imposed by this chapter for the taxable
year an amount equal to 10 percent of the amount which
would (but for subsection (d)(2)) be allowed for such year
as a deduction under section 170 for a qualified conserva-
tion contribution (as defined in section 170(h)).
‘‘(b) LIMITATIONS.—
‘‘(1) MAXIMUM CREDIT.—
‘‘(A) IN GENERAL.—The credit allowed by
subsection (a) for any taxable year shall not ex-
ceed the excess (if any) of—
‘‘(i) $360,000, over
‘‘(ii) the aggregate amount allowed by
subsection (a) (determined without regard
to subsection (e)) to the taxpayer for the
15 prior taxable years.
‘‘(B) SPECIAL
RULE
FOR
JOINT
RE-
TURNS.—The amount of the credit under sub-
section (a) on a joint return for any taxable
year shall be allocated equally between the
spouses for purposes of applying the limitation
under subparagraph (A) for succeeding taxable
years.
‘‘(C) AGGREGATION RULE.—For purposes
of this paragraph, all members of the same con-
trolled group of corporations (within the mean-
ing of section 267(f)), and all persons under
common control (within the meaning of section
52(b)) but treating an interest of more than 20
percent as a controlling interest), shall be treat-
ed as 1 taxpayer.
‘‘(2) LIMITATION
BASED
ON
AMOUNT
OF
TAX.—The credit allowed by subsection (a) for any
taxable year shall not exceed the excess (if any) of—
‘‘(A) the regular tax for the taxable year
reduced by the sum of the credits allowable
under subpart A and the preceding sections of
this subpart, over
‘‘(B) the tentative minimum tax for the
taxable year.
‘‘(c) ELIGIBLE FARMER OR RANCHER.—For pur-
poses of this section, the term ‘eligible farmer or rancher’
means—
‘‘(1) in the case of an individual, a taxpayer
whose gross income from farming (as defined in sec-
tion 464(e)(1)) is 60 percent or more of the tax-
payer’s gross income for the taxable year; and
‘‘(2) in the case of a C corporation—
‘‘(A) the gross income of the corporation
from farming (as so defined) is 60 percent or
more of the corporation’s gross income for the
taxable year;
‘‘(B) the stock of the corporation is not
publicly traded on a recognized exchange; and
‘‘(C) the fair market value of the assets of
the corporation used in farming does not exceed
$20,000,000.
‘‘(d) SPECIAL RULES.—
‘‘(1) ELECTION.—This section shall apply to a
taxpayer for the taxable year only if the taxpayer
elects its application for such year. Such an election,
once made, shall be irrevocable.
‘‘(2) APPLICATION WITH SECTION 170.—No de-
duction shall be allowed under section 170 for a
qualified conservation contribution (as defined in
section 170(h)) to a taxpayer who elects to take the
credit allowed by subsection (a) for a qualified con-
servation contribution during the 15-taxable-year pe-
riod described in subsection (b)(1)(A)(ii).
‘‘(e) CARRYFORWARD OF EXCESS CREDIT.—If the
credit allowable under subsection (a) for any taxable year
exceeds the amount of the limitation imposed by sub-
section (b)(2) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such succeeding
taxable year.’’
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart B of part IV of subchapter A of chapter
1 of such Code is amended by adding at the end the fol-
lowing:
‘‘Sec. 30B. Private land conservation.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to donations of quali-
fied conservation contributions (as defined in section
170(h) of the Internal Revenue Code of 1986) made after
the date of the enactment of this Act.
SEC. 3. INCREASE IN CHARITABLE CONTRIBUTION LIMIT
FOR FARMERS AND RANCHERS DOING BUSI-
NESS IN CORPORATE FORM.
(a) IN GENERAL.—Section 170(b)(1) of the Internal
Revenue Code of 1986 (relating to corporations) is amend-
ed by redesignating subparagraph (F) as subparagraph
(G) and by inserting after subparagraph (E) the following:
‘‘(F) CERTAIN
FARMERS
AND
RANCH-
ERS.—A qualified farmer or rancher (as defined
in section 30B(d)) shall be treated as an indi-
vidual for purposes of this section with respect
to any qualified conservation contribution.’’
(b) CONFORMING AMENDMENT.—Section 170(b)(2)
of such Code is amended by striking ‘‘corporation,’’ and
inserting ‘‘corporation (other than a corporation that is
an eligible farmer or rancher as defined in section 30B(d)
with respect to a qualified conservation contribution),’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
SEC. 4. EXPANSION OF ESTATE TAX EXCLUSION FOR LAND
SUBJECT 
TO 
QUALIFIED 
CONSERVATION
EASEMENT.
(a) IN GENERAL.—Subparagraph (A) of section
2031(c)(8) of the Internal Revenue Code of 1986 is
amended by striking clause (i) and by redesignating
clauses (ii) and (iii) as clauses (i) and (ii), respectively.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to estates of decedents dying after
the date of the enactment of this Act.
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