I 
112TH CONGRESS 
1ST SESSION 
H. R. 390 
To amend the Internal Revenue Code of 1986 to provide an exclusion from 
the gross estate for certain farmlands and lands subject to qualified 
conservation easements, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 20, 2011 
Mr. THOMPSON of California 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 provide 
an exclusion from the gross estate for certain farmlands 
and lands subject to qualified conservation easements, 
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. 
This Act may be cited as the ‘‘Family Farm Preser-
vation and Conservation Estate Tax Act’’. 
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SEC. 2. EXCLUSION FROM GROSS ESTATE FOR CERTAIN 
FARMLAND SO LONG AS FARMLAND USE 
CONTINUES. 
(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 SO LONG 
AS USE AS FARMLAND CONTINUES. 
‘‘(a) IN GENERAL.—In the case of an estate of a de-
cedent to which this section applies, if the executor makes 
the election described in subsection (f), the value of the 
gross estate shall not include the adjusted value of quali-
fied farmland included in the estate. 
‘‘(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 
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‘‘(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, except 
that ‘material participation’ shall also include 
any rental of real estate and related property 
between the estate of the decedent or any suc-
cessor thereto and any tenant so long as the 
tenant uses the real estate and related property 
to produce agricultural or horticultural com-
modities, including livestock, bees, poultry, or-
chards and woodlands, timber and fur-bearing 
animals and wildlife, on such farmland. 
Rules similar to the rules of paragraphs (4) and (5) 
of section 2032A(b) shall apply for purposes of sub-
paragraph (B). 
‘‘(c) DEFINITIONS AND SPECIAL RULE.—For pur-
poses 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, and 
‘‘(C) which was acquired from or passed 
from the decedent to a qualified heir of the de-
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is amended by inserting after the item relating to section 
2033 the following new item: 
‘‘Sec. 2033A.
Exclusion of certain farmland so long as use as farmland con-
tinues.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying after 
the date of the enactment of this Act. 
SEC. 3. TEMPORARY EXCLUSION OF QUALIFIED CONSERVA-
TION EASEMENTS. 
(a) IN GENERAL.—Part III of subchapter A of chap-
ter 11 of the Internal Revenue Code of 1986 (relating to 
gross estate), as amended by section 2, is amended by in-
serting after section 2033A the following new section: 
‘‘SEC. 2033B. TEMPORARY EXCLUSION OF QUALIFIED CON-
SERVATION EASEMENTS. 
‘‘(a) IN GENERAL.—In the case of an estate of a de-
cedent to which this section applies, if the executor makes 
the election described in subsection (d)— 
‘‘(1) the value of the gross estate shall not in-
clude the value of land subject to a qualified con-
servation easement included in the estate, but 
‘‘(2) a tax under subsection (b) shall apply. 
‘‘(b) TAX TREATMENT OF DISPOSITIONS AND FOR 
USE INCOMPATIBLE WITH CONSERVATION EASEMENT.— 
‘‘(1) IMPOSITION OF RECAPTURE TAX.—If, at 
any time after the decedent’s death— 
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‘‘(A) the qualified heir disposes of any in-
terest in the land described in subsection (a)(1) 
(other than by a disposition to a member of his 
family), or 
‘‘(B) the qualified heir uses any portion of 
the land described in subsection (a)(1) in a 
manner which violates the terms of such ease-
ment, 
then there is hereby imposed a recapture tax on 
such disposition or use. 
‘‘(2) AMOUNT
OF
RECAPTURE
TAX.—The 
amount of the tax imposed by paragraph (1) shall 
be the excess of— 
‘‘(A) the tax which would have been im-
posed by section 2001 on the estate of the dece-
dent, determined as if— 
‘‘(i) section 2031(c) did not apply, 
and 
‘‘(ii) as if such estate included the in-
terest described in paragraph (1)(A) or the 
portion described in paragraph (1)(B), as 
applicable, 
reduced by the credits allowable against such 
tax, over 
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‘‘(B) the tax imposed by section 2001 on 
the estate of the decedent, reduced by such 
credits. 
For purposes of this paragraph, the value of any in-
terest in land or portion of land subject to a quali-
fied conservation easement shall be the fair market 
value of such interest or portion as of the date of 
the disposition or use of such interest or portion de-
scribed in paragraph (1). 
‘‘(3) REGULATIONS.—The Secretary may pre-
scribe such regulations as may be necessary or ap-
propriate to carry out this subsection, including reg-
ulations requiring record keeping and information 
reporting, except that the Secretary may not impose 
a lien on the estate of the decedent, land subject to 
a qualified conservation easement, or qualified con-
servation easement for such purposes. 
‘‘(c) LAND SUBJECT TO QUALIFIED CONSERVATION 
EASEMENT.—For purposes of this section, the terms ‘land 
subject to a qualified conservation easement’ and ‘quali-
fied conservation easement’ have the meanings given such 
terms by section 2031(c)(8). 
‘‘(d) ELECTION.—The election under this subsection 
shall be made on or before the due date (including exten-
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sions) for filing the return of tax imposed by section 2001 
and shall be made on such return.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter B of chapter 62 of such Code is amended 
by adding at the end the following new item: 
‘‘Sec. 2033B.
Temporary exclusion of qualified conservation easements.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying after 
the date of the enactment of this Act. 
SEC. 4. MODIFICATION OF DEFINITION OF QUALIFIED CON-
SERVATION EASEMENT. 
(a) IN GENERAL.—Subparagraph (B) of section 
2031(c)(8) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and the restriction on the use of 
such interest described in section 170(h)(2)(C) shall in-
clude a prohibition on more than a de minimis use for 
a commercial recreational activity’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying after 
the date of the enactment of this Act. 
SEC. 5. MODIFICATION OF RULES RELATING TO VALU-
ATION OF CERTAIN FARM, ETC., REAL PROP-
ERTY. 
(a) DISPOSITION OF INTEREST SUBJECT TO QUALI-
FIED CONSERVATION EASEMENT.—Subparagraph (A) of 
section 2032A(c)(1) of the Internal Revenue Code of 1986 
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is amended by striking ‘‘family)’’ and inserting ‘‘family 
or by a disposition to any other person when such interest 
in real property is subject to a qualified conservation ease-
ment (as defined in section 2031(c)(8)(B)))’’. 
(b) 
WOODLANDS
SUBJECT
TO
MANAGEMENT 
PLAN.—Paragraph (2) of section 2032A(c) of such Code 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(F) EXCEPTION
FOR
WOODLANDS
SUB-
JECT TO MANAGEMENT PLAN.—Subparagraph 
(E) shall not apply to any disposition or sever-
ance of standing timber on a qualified woodland 
that is made pursuant to— 
‘‘(i) a written forest management plan 
developed by a credentialed professional 
forester, 
‘‘(ii) a written forest management 
plan that is equivalent to a forest steward-
ship plan, or 
‘‘(iii) a third-party audited forest cer-
tification system or similar land manage-
ment protocol.’’. 
(c) SALE OF CONSERVATION EASEMENT NOT A DIS-
POSITION.—Paragraph (8) of section 2032A(c) of such 
Code is amended— 
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(1) by striking ‘‘A qualified’’ and inserting 
‘‘Neither a qualified’’, and 
(2) by inserting ‘‘nor a sale of a conservation 
easement limiting the use of qualified real property’’ 
after ‘‘otherwise’’. 
(d) FARM DEFINED.—Paragraph (4) of section 
2032A(e) of such Code is amended by striking ‘‘orchards 
and woodlands’’ and inserting ‘‘orchards, woodlands, and 
properties managed to provide habitat in support of fish 
and wildlife dependent recreation’’. 
(e) FARMING PURPOSE DEFINED.—Paragraph (5) of 
section 2032A(e) of such Code is amended— 
(1) in subparagraph (A) by inserting ‘‘, silvicul-
tural,’’ after ‘‘agricultural’’, and 
(2) by striking ‘‘and’’ at the end of subpara-
graph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, and’’, and by adding 
at the end the following: 
‘‘(D) creating, restoring, enhancing, or 
maintaining habitat for the purpose of gener-
ating revenue from nature-oriented recreational 
opportunities, including hunting, fishing, wild-
life observation, and related fish and wildlife de-
pendent recreation.’’. 
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(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying after 
the date of the enactment of this Act. 
Æ 
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