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contributions described in clause (i) shall
not be treated as described in subparagraph
(A), (B), (C), or (D) and such subpara-
graphs shall apply without regard to such
contributions.
‘‘(iv) QUALIFIED FARMER OR RANCH-
ER.—
‘‘(I) IN
GENERAL.—If the indi-
vidual is a qualified farmer or rancher
for the taxable year in which the con-
tribution is made, clause (i) shall be
applied by substituting ‘100 percent’
for ‘50 percent’.
‘‘(II) DEFINITION.—For purposes
of subclause (I), the term ‘qualified
farmer or rancher’ means a taxpayer
whose gross income from the trade or
business of farming (within the mean-
ing of section 2032A(e)(5)) is greater
than 50 percent of the taxpayer’s gross
income for the taxable year.
‘‘(v) 
TERMINATION.—This 
subpara-
graph shall not apply to any contribution
made in taxable years beginning after De-
cember 31, 2007.’’.
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(2) CORPORATIONS.—Paragraph (2) of section
170(b) is amended to read as follows:
‘‘(2) 
CORPORATIONS.—In 
the 
case 
of 
a
corporation—
‘‘(A) IN
GENERAL.—The total deductions
under subsection (a) for any taxable year (other
than for contributions to which subparagraph
(B) applies) shall not exceed 10 percent of the
taxpayer’s taxable income.
‘‘(B) QUALIFIED CONSERVATION CONTRIBU-
TIONS
BY
CERTAIN
CORPORATE
FARMERS
AND
RANCHERS.—
‘‘(i) IN GENERAL.—Any qualified con-
servation contribution (as defined in sub-
section (h)(1)) made—
‘‘(I) by a corporation which, for
the taxable year during which the con-
tribution is made, is a qualified farm-
er or rancher (as defined in paragraph
(1)(E)(iv)(II)) and the stock of which
is not readily tradable on an estab-
lished securities market at any time
during such year, and
‘‘(II) to an organization described
in paragraph (1)(A),
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shall be allowed to the extent the aggregate
of such contributions does not exceed the ex-
cess of the taxpayer’s taxable income over
the amount of charitable contributions al-
lowable under subparagraph (A).
‘‘(ii) CARRYOVER.—If the aggregate
amount of contributions described in clause
(i) exceeds the limitation of clause (i), such
excess shall be treated (in a manner con-
sistent with the rules of subsection (d)(2))
as a charitable contribution to which clause
(i) applies in each of the 15 succeeding
years in order of time.
‘‘(iii) TERMINATION.—This subpara-
graph shall not apply to any contribution
made in taxable years beginning after De-
cember 31, 2007.
‘‘(C) TAXABLE
INCOME.—For purposes of
this paragraph, taxable income shall be com-
puted without regard to—
‘‘(i) this section,
‘‘(ii) part VIII (except section 248),
‘‘(iii) 
any 
net 
operating 
loss
carrryback to the taxable year under section
172,
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‘‘(iv) section 199, and
‘‘(v) any capital loss carryback to the
taxable year under section 1212(a)(1).’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 170(d) is amended
by striking ‘‘subsection (b)(2)’’ each place it appears
and inserting ‘‘subsection (b)(2)(A)’’.
(2) Section 545(b)(2) is amended by striking
‘‘and (D)’’ and inserting ‘‘(D), and (E)’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to contributions made in taxable years
beginning after December 31, 2005.
SEC. 208. ENHANCED DEDUCTION FOR CHARITABLE CON-
TRIBUTION OF LITERARY, MUSICAL, ARTIS-
TIC, AND SCHOLARLY COMPOSITIONS.
(a) IN GENERAL.—Subsection (e) of section 170 (relat-
ing to certain contributions of ordinary income and capital
gain property) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(7) SPECIAL
RULE
FOR
CERTAIN
CONTRIBU-
TIONS OF LITERARY, MUSICAL, ARTISTIC, OR SCHOL-
ARLY COMPOSITIONS.—
‘‘(A) IN GENERAL.—In the case of a quali-
fied artistic charitable contribution—
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‘‘(i) the amount of such contribution
taken into account under this section shall
be the fair market value of the property con-
tributed (determined at the time of such
contribution), and
‘‘(ii) no reduction in the amount of
such contribution shall be made under
paragraph (1).
‘‘(B) QUALIFIED
ARTISTIC
CHARITABLE
CONTRIBUTION.—For purposes of this para-
graph, the term ‘qualified artistic charitable con-
tribution’ means a charitable contribution of any
literary, musical, artistic, or scholarly composi-
tion, or similar property, or the copyright there-
on (or both), but only if—
‘‘(i) such property was created by the
personal efforts of the taxpayer making such
contribution no less than 18 months prior
to such contribution,
‘‘(ii) the taxpayer—
‘‘(I) has received a qualified ap-
praisal of the fair market value of such
property in accordance with the regu-
lations under this section, and
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‘‘(II) attaches to the taxpayer’s
income tax return for the taxable year
in which such contribution was made a
copy of such appraisal,
‘‘(iii) the donee is an organization de-
scribed in subsection (b)(1)(A),
‘‘(iv) the use of such property by the
donee is related to the purpose or function
constituting the basis for the donee’s exemp-
tion under section 501 (or, in the case of a
governmental unit, to any purpose or func-
tion described under section 501(c)),
‘‘(v) the taxpayer receives from the
donee a written statement representing that
the donee’s use of the property will be in ac-
cordance with the provisions of clause (iv),
and
‘‘(vi) the written appraisal referred to
in clause (ii) includes evidence of the extent
(if any) to which property created by the
personal efforts of the taxpayer and of the
same type as the donated property is or has
been—