I 
116TH CONGRESS 
2D SESSION 
H. R. 8842 
To amend the Internal Revenue Code of 1986 to limit the charitable deduction 
for certain qualified conservation contributions. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 2, 2020 
Mr. THOMPSON of California (for himself and Mr. KELLY of Pennsylvania) 
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 limit the 
charitable deduction for certain qualified conservation 
contributions. 
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 ‘‘Charitable Conserva-
tion Easement Program Integrity Act of 2020’’. 
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SEC. 2. LIMITATION ON DEDUCTION FOR QUALIFIED CON-
SERVATION CONTRIBUTIONS MADE BY PASS- 
THROUGH ENTITIES. 
(a) IN GENERAL.—Section 170(h) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(7) LIMITATION ON DEDUCTION FOR QUALI-
FIED
CONSERVATION
CONTRIBUTIONS
MADE
BY 
PASS-THROUGH ENTITIES.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified conservation contribution of any part-
nership (whether directly or as a distributive 
share of such contribution of another partner-
ship), no amount of such contribution may be 
taken into account under this section by any 
partner of such partnership as a distributive 
share of such contribution if the aggregate 
amount so taken into account by such partner 
for the taxable year would (but for this para-
graph) exceed 2.5 times the portion of the ad-
justed basis of such partner’s interest in such 
partnership (determined immediately before 
such contribution and without regard to section 
752) which is allocable (under rules similar to 
the rules of section 755) to the qualified real 
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property interest with respect to which such 
contribution is made. 
‘‘(B) EXCEPTION
FOR
CONTRIBUTIONS 
OUTSIDE 3-YEAR HOLDING PERIOD.—Subpara-
graph (A) shall not apply to a partner’s dis-
tributive share of a qualified conservation con-
tribution if such contribution is made— 
‘‘(i) at least 3 years after the date the 
partnership acquired the entirety of the 
qualified real property interest with respect 
to which such contribution is made, 
‘‘(ii) at least 3 years after the date 
the partner acquired the partner’s entire 
interest in the partnership with respect to 
which such distributive share is deter-
mined, and 
‘‘(iii) if the interest in the partnership 
making such contribution is held through 
one or more partnerships, at least 3 years 
after each such partnership acquired the 
entirety of the interest in any such part-
nership with respect to which such dis-
tributive share is determined. 
‘‘(C) EXCEPTION FOR FAMILY PARTNER-
SHIPS.—Subparagraph (A) shall not apply with 
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respect to any qualified conservation contribu-
tion made by any partnership if substantially all 
of the partnership interests in such partnership 
are held by individuals who are related within 
the meaning of section 152(d)(2). 
‘‘(D) 
APPLICATION
TO
OTHER
PASS- 
THROUGH ENTITIES.—Except as may be other-
wise provided by the Secretary, the rules of this 
paragraph shall apply to S corporations and 
other pass-through entities in the same manner 
as such rules apply to partnerships. 
‘‘(E) REGULATIONS.—The Secretary shall 
prescribe such regulations or other guidance as 
may be necessary to carry out, and prevent the 
avoidance of, the purposes of this paragraph, 
including, in the case of tiered partnerships, 
such reporting to the Secretary and among such 
partnerships as the Secretary determines appro-
priate.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by this section shall 
apply to contributions made in taxable years ending 
after December 23, 2016. 
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(2) CERTIFIED HISTORIC STRUCTURES.—In the 
case of contributions the conservation purpose (as 
defined in section 170(h)(4) of the Internal Revenue 
Code of 1986) of which is the preservation of a cer-
tified historic structure (as defined in section 
170(h)(4)(C) of such Code), the amendment made 
by this section shall apply to contributions made in 
taxable years beginning after December 31, 2018. 
(3) NO INFERENCE.—No inference is intended 
as to the appropriate treatment of contributions 
made in taxable years ending on or before the date 
specified in paragraph (1) or (2), whichever is appli-
cable, or as to any activity not described in section 
170(h)(7) of the Internal Revenue Code of 1986, as 
added by this section. 
Æ 
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