I
106TH CONGRESS
2D SESSION
H. R. 5336
To amend the Internal Revenue Code of 1986 to exclude from gross income
gain on the sale to a governmental unit of land or an easement therein
for open space conservation purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 28, 2000
Mr. FORBES (for himself and Mr. ENGEL) 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
from gross income gain on the sale to a governmental
unit of land or an easement therein for open space
conservation 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 ‘‘Conservation and Rein-
vestment Tax-Incentive Act of 2000’’.
SEC. 2. FINDINGS.
The Congress finds that—
(1) the Nation’s natural resources are vital to
the future prosperity of the United States,
(2) accessible, open space for all Americans to
enjoy promotes health and well being of the people,
(3) accessible, open space for all Americans to
enjoy provides educational opportunities,
(4) many Americans wish to make their land
open to all in perpetuity, and
(5) the taxes incurred on the sale of land can
be a disincentive to owners to choose to keep the
land undeveloped.
SEC. 3. EXCLUSION OF GAIN FROM SALE OF REAL PROP-
ERTY OR AN EASEMENT THEREIN TO A GOV-
ERNMENTAL UNIT FOR OPEN SPACE CON-
SERVATION PURPOSES.
(a) GENERAL RULE.—Part III of subchapter B of
chapter 1 of the Internal Revenue Code of 1986 (relating
to items specifically excluded from gross income) is
amended by redesignating section 139 as section 139A
and by inserting after section 138 the following new sec-
tion:
‘‘SEC. 139. EXCLUSION OF GAIN FROM SALE OF REAL PROP-
ERTY OR AN EASEMENT THEREIN TO A GOV-
ERNMENTAL UNIT FOR OPEN SPACE CON-
SERVATION PURPOSES.
‘‘(a) GENERAL RULE.—Gross income does not in-
clude gain from the sale or exchange to a governmental
unit of—
‘‘(1) qualified real property subject to a quali-
fied conservation easement, and
‘‘(2) a qualified conservation easement.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED
CONSERVATION
PURPOSE.—
The term ‘qualified conservation purpose’ has the
meaning given to such term by section 170(h)(4)(A),
other than clause (iv) thereof.
‘‘(2) QUALIFIED REAL PROPERTY.—The term
‘qualified real property’ means any real property—
‘‘(A) which is located in the United States,
and
‘‘(B) which is used exclusively for con-
servation purposes.
‘‘(3) QUALIFIED CONSERVATION EASEMENT.—
The term ‘qualified conservation easement’ means a
restriction (granted in perpetuity) on the use which
may be made of qualified real property which does
not permit any use of such property for any purpose
other than use exclusively for a qualified conserva-
tion purpose.
‘‘(4) GOVERNMENTAL
UNIT.—The term ‘gov-
ernmental unit’ means an entity described in section
170(c)(1).
‘‘(c) VERIFICATION OF EASEMENT.—Subsection (a)
shall not apply by reason of any qualified conservation
easement unless the taxpayer—
‘‘(1) notifies the Secretary in such form and
manner as the Secretary may by regulations pre-
scribe, and
‘‘(2) submits to the Secretary a copy of such
easement.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for such part is amended by striking the last item and
inserting the following new items:
‘‘Sec. 139. Exclusion of gain from sale of real property or an
easement therein to a governmental unit for open
space conservation purposes.
‘‘Sec. 139A. Cross references to other Acts.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to sales and exchanges after De-
cember 31, 2000.
Æ