I 
111TH CONGRESS 
1ST SESSION H. R. 3622 
To amend the Internal Revenue Code of 1986 to allow a credit for the 
construction of pond establishments for the purposes of non-commercial 
recreational fishing and conservation of water-based wildlife habitats. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 22, 2009 
Mr. BRIGHT 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 allow a 
credit for the construction of pond establishments for 
the purposes of non-commercial recreational fishing and 
conservation of water-based wildlife habitats. 
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 ‘‘Ponds and Water- 
Based Conservation Act of 2009’’. 
SEC. 2. POND CONSTRUCTION CREDIT. 
(a) POND CONSTRUCTION CREDIT.—Subpart A of 
part IV of subchapter A of chapter 1 of the Internal Rev-
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enue Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 25E. POND CONSTRUCTION CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to 50 percent of qualified pond construction expendi-
tures. 
‘‘(b) LIMITATIONS.—The amount allowed as a credit 
under subsection (a) for a taxable year shall not exceed 
$50,000. 
‘‘(c) QUALIFIED POND CONSTRUCTION EXPENDI-
TURES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified pond 
construction expenditures’ means amounts paid or 
incurred to construct a body of water larger than 
one-half acre and smaller than 10 acres that serves 
to promote stormwater management and conserva-
tion or foster expansion of water-based habitat for 
wildlife or fish. 
‘‘(2) LABOR
COSTS.—For purposes of para-
graph (1), expenditures for labor costs properly allo-
cable to the onsite construction of such body of 
water shall be taken into account. 
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‘‘(3) EXCEPTION
FOR
COMMERCIAL
USES.— 
Such term does not include any amount paid or in-
curred with respect to commercial fishing. 
‘‘(d) RECAPTURE OF CREDIT.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
for the recapture of the credit allowed under this 
section in any case in which, before the close of the 
recapture period, the land with respect to which the 
qualified pond construction expenditures were paid 
or incurred is disposed of or otherwise ceases to sus-
tain water-based wildlife or fish. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) DEATH
OF
TAXPAYER.—Paragraph 
(1) shall not apply to any taxable year ending 
after the date of the taxpayer’s death. 
‘‘(B) INVOLUNTARY
CONVERSION.—Para-
graph (1) shall not apply in the case of a prop-
erty which is compulsorily or involuntarily con-
verted (within the meaning of section 1033(a)). 
‘‘(C) TRANSFERS BETWEEN SPOUSES OR 
INCIDENT TO DIVORCE.—In the case of a trans-
fer of a property to which section 1041(a) ap-
plies— 
‘‘(i) paragraph (1) shall not apply to 
such transfer, and 
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‘‘(ii) in the case of taxable years end-
ing after such transfer, paragraph (1) shall 
apply to the transferee in the same manner 
as if such transferee were the transferor 
(and shall not apply to the transferor). 
‘‘(3) RECAPTURE
PERIOD.—For purposes of 
paragraph (1), the recapture period is the 10-taxable 
year period beginning with the taxable year after the 
taxable year for which a credit is allowed under sub-
section (a). 
‘‘(e) CERTIFICATION.— 
‘‘(1) YEAR
OF
CONSTRUCTION.—No amount 
shall be treated as a qualified pond construction ex-
penditure unless the taxpayer certifies that the body 
of water constructed pursuant to such expenditures 
meets the requirements of subsection (c)(1). 
‘‘(2) RECAPTURE.—Recapture shall be required 
under subsection (d) for any year in the recapture 
period unless the taxpayer certifies that the taxpayer 
is in compliance with subsection (d). 
‘‘(3) CERTIFICATION REQUIREMENTS.—A cer-
tification under this subsection shall be in such form 
and meet such requirements as the Secretary may 
require.’’. 
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(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart A of part IV of subchapter A of chapter 
1 of such Code is amended by inserting after the item 
relating to section 25D the following new item: 
‘‘Sec. 25E. Pond construction credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
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