‘‘(A) has entered into an endangered spe-
cies conservation agreement with respect to
such property, and
‘‘(B) has entered into a written agreement
with the Secretary consenting to the application
of subsection (d), and
‘‘(2) the executor of the decedent’s estate—
‘‘(A) elects the application of this section,
and
‘‘(B) files with the Secretary such endan-
gered species conservation agreement.
‘‘(c) ENDANGERED SPECIES CONSERVATION AGREE-
MENT.—For purposes of this section, the term ‘endan-
gered species conservation agreement’ means a written
agreement, entered into with the Secretary of the Interior
or the Secretary of Commerce—
‘‘(1) which commits each person who signed
such agreement to carry out on such property activi-
ties or practices not otherwise required by law, or to
refrain from carrying out on such property activities
or practices that such person could otherwise law-
fully carry out, or both,
‘‘(2) which is certified by such Secretary as as-
sisting in the conservation of any species which is—
‘‘(A) designated by such Secretary as an
endangered or threatened species under the En-
dangered Species Act of 1973,
‘‘(B) proposed for such designation, or
‘‘(C) officially identified by such Secretary
as a candidate for possible future protection as
an endangered or threatened species, and
‘‘(3) the duration of which is at least 10 years.
‘‘(d) COORDINATION WITH OTHER BENEFITS.—No
credit shall be allowed under section 30A with respect to
any endangered species conservation agreement with re-
spect to which an election under this section is made.
‘‘(e) RECAPTURE
OF TAX BENEFIT
IN CERTAIN
CASES.—
‘‘(1) DISPOSITION OF INTEREST OR MATERIAL
BREACH.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (C), if, at any time during the
10-year period beginning on the date the endan-
gered species conservation agreement is entered
into with respect to any property—
‘‘(i) any person disposes of any inter-
est in such property, or
‘‘(ii) there is a material breach by any
person who holds an interest in such prop-
erty of any endangered species conserva-
tion agreement with respect to such prop-
erty,
then there is hereby imposed an additional es-
tate tax.
‘‘(B) AMOUNT OF TAX.—The amount of
the tax imposed by subparagraph (A) with re-
spect to any interest shall be the amount equal
to the lesser of—
‘‘(i) the adjusted tax difference attrib-
utable to such interest (determined under
rules similar to the rules of section
2032A(c)(2)), or
‘‘(ii) the amount realized with respect
to the interest (or, in any case other than
a sale or exchange at arm’s length, the fair
market value of the interest.
‘‘(C) EXCEPTION
IF
TRANSFEREE
AS-
SUMES
OBLIGATIONS
OF
TRANSFEROR.—Sub-
paragraph (A) shall not apply to a disposition
if the transferee enters into a binding written
agreement—
‘‘(i) to assume the obligations imposed
on the transferor under the endangered
species conservation agreement;
‘‘(ii) to assume liability for any tax
imposed under subparagraph (A) with re-
spect to any future dispositions or breaches
by such transferee; and
‘‘(iii) to notify the Secretary who en-
tered into the endangered species conserva-
tion agreement and the Secretary that the
transferee has assumed the obligations and
liabilities described in clauses (i) and (ii).
‘‘(2) DUE DATE OF ADDITIONAL TAX.—The tax
imposed by paragraph (1) shall become due and pay-
able on the day that is 6 months after the date of
the disposition or breach referred to in paragraph
(1)(A).
‘‘(f) STATUTE OF LIMITATIONS.—If a taxpayer in-
curs a tax liability pursuant to subsection (e)(1), then—
‘‘(1) the statutory period for the assessment of
any additional tax imposed by subsection (e)(1) shall
not expire before the expiration of 3 years from the
date the Secretary is notified (in such manner as the
Secretary may by regulation prescribe) of the incur-
ring of such tax liability, and
‘‘(2) such additional tax may be assessed before
the expiration of such 3-year period notwithstanding
the provisions of any other law or rule of law that
would otherwise prevent such assessment.
‘‘(g) ELECTION AND FILING OF AGREEMENT.—The
election under this section shall be made on the return
of the tax imposed by section 2001. Such election, and
the filing under subsection (a) of an endangered species
conservation agreement, shall be made in such manner as
the Secretary shall by regulation provide.’’
(b) CLERICAL AMENDMENT.—The table of sections
for part IV of subchapter A of chapter 11 of such Code
is amended by adding at the end the following new item:
‘‘Sec. 2057. Certain real property subject to endangered species
conservation agreement.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to estates of decedents dying after
the date of the enactment of this Act.
SEC. 4. ENHANCED DEDUCTION FOR DONATION OF A CON-
SERVATION EASEMENT.
(a) IN GENERAL.— Subsection (h) of section 170 of
the Internal Revenue Code of 1986 (relating to charitable,
etc., contributions and gifts) is amended by adding at the
end the following new paragraph:
‘‘(7) ENHANCED
VALUATION
OF
EASEMENT
FOR PROTECTION OF ENDANGERED SPECIES.—
‘‘(A) IN GENERAL.—For purposes of this
section, if the taxpayer elects the application of