I
106TH CONGRESS
2D SESSION
H. R. 4101
To amend the Internal Revenue Code of 1986 to exclude from estate taxes
the value of certain farmland the use of which is restricted in perpetuity
to use as farmland.
IN THE HOUSE OF REPRESENTATIVES
MARCH 28, 2000
Mr. PITTS (for himself, Mr. BOEHLERT, Mrs. CAPPS, Mr. PETERSON of Penn-
sylvania, Mr. DEMINT, Mr. ENGLISH, Mr. GOODE, Mr. HOEFFEL, Mr.
GOODLING, Mr. WELDON of Pennsylvania, Mr. GILMAN, Mr. TANCREDO,
Mr. RYUN of Kansas, Mr. FRANKS of New Jersey, Mr. KINGSTON, and
Mr. DEAL of Georgia) 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 estate taxes the value of certain farmland the use
of which is restricted in perpetuity to use as farmland.
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 ‘‘Farmland Preservation
Act of 2000’’.
SEC. 2. EXCLUSION FROM GROSS ESTATE OF CERTAIN
FARMLAND WHICH IS RESTRICTED IN PER-
PETUITY TO USE AS FARMLAND.
(a) IN GENERAL.—Part III of subchapter A of chap-
ter 11 of the Internal Revenue Code of 1986 (relating to
gross estate) is amended by inserting after section 2033
the following new section:
‘‘SEC. 2033A. EXCLUSION OF CERTAIN FARMLAND WHICH IS
RESTRICTED IN PERPETUITY TO USE AS
FARMLAND.
‘‘(a) IN GENERAL.—In the case of an estate of a de-
cedent to which this section applies, the value of the gross
estate shall not include the adjusted value of qualified
farmland included in the estate if there is in effect on the
date of death a qualified farmland conservation easement.
‘‘(b) ESTATES TO WHICH SECTION APPLIES.—This
section shall apply to an estate if—
‘‘(1) the decedent was (at the date of the dece-
dent’s death) a citizen or resident of the United
States, and
‘‘(2) during the 8-year period ending on the
date of the decedent’s death there have been periods
aggregating 5 years or more during which—
‘‘(A) the qualified farmland was owned by
the decedent or a member of the decedent’s
family, and
‘‘(B) there was material participation
(within the meaning of section 2032A(e)(6)) by
the decedent or a member of the decedent’s
family in the operation of such farmland.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED FARMLAND.—The term ‘quali-
fied farmland’ means any real property—
‘‘(A) which is located in the United States,
‘‘(B) which is used as a farm for farming
purposes (within the meaning of section
2032A(e)), and
‘‘(C) which is located in a county which
has a population of 100 or more persons per
square mile.
‘‘(2) QUALIFIED
FARMLAND
CONSERVATION
EASEMENT.—The term ‘qualified farmland conserva-
tion easement’ means a restriction (granted in per-
petuity) which does not permit any use of the land
for any purpose other than use as a farm for farm-
ing purposes (within the meaning of section
2032A(e)).
‘‘(3) ADJUSTED
VALUE.—The term ‘adjusted
value’ means the value of farmland for purposes of
this chapter (determined without regard to this sec-
tion), reduced by the amount deductible under para-
graph (3) or (4) of section 2053(a).
‘‘(d) VERIFICATION OF EASEMENT.—Subsection (a)
shall not apply by reason of any qualified farmland con-
servation easement unless the executor—
‘‘(1) notifies (in such form and manner as the
Secretary may by regulations prescribe) both the
Secretary and the Secretary of Agriculture of the
political subdivision of the State in which such ease-
ment is recorded, and
‘‘(2) submits to the Secretary a copy of such
easement.’’
(b) CLERICAL AMENDMENT.—The table of sections
for part III of subchapter A of chapter 11 of such Code
is amended by inserting after the item relating to section
2033 the following new item:
‘‘Sec. 2033A. Exclusion of certain farmland which is restricted in
perpetuity to use as farmland.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to restrictions first recorded after
December 31, 2000, with respect to estates of decedents
dying after such date.
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