I
105TH CONGRESS
1ST SESSION
H. R. 2101
To amend the Internal Revenue Code of 1986 to exclude qualified conserva-
tion easements from a decedent’s gross estate, exempt from tax the
gain on the sale of qualified forest land to government entities or con-
servation groups, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 26, 1997
Mr. SUNUNU 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 exclude
qualified conservation easements from a decedent’s gross
estate, exempt from tax the gain on the sale of qualified
forest land to government entities or conservation
groups, 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 AND AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Family Forest Conservation Act of 1997’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
SEC. 2. EXCLUSION OF CONSERVATION EASEMENTS FROM
GROSS ESTATE.
(a) IN GENERAL.—Section 2031 (relating to the defi-
nition of gross estate) is amended by redesignating sub-
section (c) as subsection (d) and by inserting after sub-
section (b) the following new subsection:
‘‘(c) EXCLUSION OF CONSERVATION EASEMENT.—
‘‘(1) IN GENERAL.—If the executor elects the
application of this subsection with respect to any
qualified forestland included in the gross estate,
there shall be excluded from the gross estate the
value of any qualified conservation easement with re-
spect to such qualified forestland.
‘‘(2) QUALIFIED CONSERVATION EASEMENT.—
For purposes of this subsection, the term ‘qualified
conservation easement’ means a qualified conserva-
tion contribution (as defined in section 170(h)(1)) of
a qualified real property interest described in section
170(h)(2)(C) with respect to forestland which—
‘‘(A) consists of 10 or more acres, and
‘‘(B) is subject to a forest management
plan.
‘‘(3) CERTAIN HISTORIC PRESERVATION CON-
TRIBUTIONS NOT INCLUDED.—For purposes of para-
graph (2), section 170(h)(4)(A) shall be applied
without regard to clause (iv) thereof in determining
whether there is a qualified conservation contribu-
tion.
‘‘(4) QUALIFIED FOREST LAND.—For purposes
of this subsection, the term ‘qualified forestland’ has
the meaning given such term by section 2032B(b)
(determined without regard to whether or not such
forestland was acquired by or passed to a qualified
heir or devisee).
‘‘(5) ELECTION.—An election under paragraph
(1) shall be made on the return of tax imposed by
section 2001. Such an election, once made, shall be
irrevocable.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to the estates of decedents dying
after December 31, 1997.
SEC. 3. SPECIAL ESTATE TAX VALUATION OF FOREST
LANDS.
(a) IN GENERAL.—Part III of subchapter A of chap-
ter 11 (relating to gross estate) is amended by inserting
after section 2032A the following new section:
‘‘SEC. 2032B. VALUATION OF CERTAIN FORESTLAND.
‘‘(a) VALUE BASED
ON USE
OF PROPERTY
AS
FORESTLAND.—If—
‘‘(1) the decedent was (at the time of his death)
a citizen or resident of the United States, and
‘‘(2) the executor elects the application of this
section and files the agreement referred to in sub-
section (d)(2),
then, for purposes of this chapter, the value of qualified
forestland shall be its value for the use under which it
qualifies, under subsection (b), as qualified forestland.
‘‘(b) QUALIFIED FORESTLAND.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified forestland’ means real prop-
erty located in the United States which meets the re-
quirements of paragraph (3) and was acquired from
or passed from the decedent to a qualified devisee or
qualified heir and which, on the date of the dece-
dent’s death, was being used for a qualified forest
use by the decedent or a member of the decedent’s
family, but only if—