I 
112TH CONGRESS 
2D SESSION 
H. R. 5982 
To amend the Internal Revenue Code of 1986 to provide that the value 
of certain historic property shall be determined using an income approach 
in determining the taxable estate of a decedent. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 20, 2012 
Mr. SHULER 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 
that the value of certain historic property shall be deter-
mined using an income approach in determining the tax-
able estate of a decedent. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ESTATE TAX VALUATION OF CERTAIN HIS-
TORIC PROPERTY. 
(a) IN GENERAL.—Part III of subchapter A of chap-
ter 11 of the Internal Revenue Code of 1986 is amended 
by inserting after section 2032A the following new section: 
VerDate Mar 15 2010 
04:48 Jun 23, 2012
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5982.IH
H5982
tjames on DSK6SPTVN1PROD with BILLS
‘‘SEC. 2032B. VALUATION OF CERTAIN HISTORIC PROP-
ERTY. 
‘‘(a) VALUE BASED ON NET EARNINGS OF HISTORIC 
PROPERTY.—If— 
‘‘(1) the decedent was (at the time of his death) 
a citizen or resident of the United States, and 
‘‘(2) the executor executes an agreement which 
meets the requirements of subsection (c), 
then, for the purposes of this chapter, the value of quali-
fied historic property shall be based on the net earnings 
(as defined in subsection (b)(3)) derived from such prop-
erty. 
‘‘(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) QUALIFIED
HISTORIC
PROPERTY.—The 
term ‘qualified historic property’ means— 
‘‘(A) any building (and its structural com-
ponents)— 
‘‘(i) which is designated as a National 
Historic Landmark under section 101 of 
the National Historic Preservation Act at 
the time of the decedent’s death and for a 
continuous period of at least 25 years prior 
to the decedent’s death, and 
‘‘(ii) which was originally used for res-
idential or farming purposes, 
VerDate Mar 15 2010 
04:48 Jun 23, 2012
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5982.IH
H5982
tjames on DSK6SPTVN1PROD with BILLS
‘‘(B) any other real property to the extent 
reasonably necessary for ingress, egress, public 
enjoyment, and visitation of the property de-
scribed in subparagraph (A) (but not including 
any real property used primarily for the sale, 
production, or manufacturing of products or for 
lodging purposes), and 
‘‘(C) personal property included within, or 
associated with, property described in subpara-
graph (A) or (B) if such personal property— 
‘‘(i) is held by the decedent holding 
such building, 
‘‘(ii) has been so included within, or 
associated with, such property so described 
throughout the 25-year period ending on 
the date of the decedent’s death, and 
‘‘(iii) is covered by the agreement re-
ferred to in subsection (a)(2) which covers 
such building, 
owned by the decedent throughout the 25-year pe-
riod ending on the date of the decedent’s death. 
‘‘(2) TREATMENT
OF
HISTORIC
PROPERTY 
HELD BY A CORPORATION.—In the case of a cor-
poration all of the stock in which was held on the 
date of the decedent’s death by the decedent or 
VerDate Mar 15 2010 
04:48 Jun 23, 2012
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5982.IH
H5982
tjames on DSK6SPTVN1PROD with BILLS
members of the decedent’s family (as defined in sec-
tion 2032A(e)(2))— 
‘‘(A) stock in such corporation shall be 
treated for purposes of this section as qualified 
historic property to the extent that the value of 
such stock is attributable to qualified historic 
property held by such corporation, but 
‘‘(B) the requirements of subsection (c) 
shall be met only if each member of the dece-
dent’s family holding such stock on such date 
signs the agreement referred to in subsection 
(a)(2). 
‘‘(3) NET EARNINGS.—The term ‘net earnings’ 
means income derived from qualified historic prop-
erty (determined without regard to any interest, de-
preciation, or tax expense) times 7. 
‘‘(4) DETERMINATION OF TIME PERIODS.—In 
determining the period for which the decedent has 
held any property or stock, there shall be included 
the period for which such property or stock was held 
by members of the decedent’s family (as defined in 
section 2032A(e)(2)). 
‘‘(c) REQUIREMENTS FOR AGREEMENT.— 
VerDate Mar 15 2010 
04:48 Jun 23, 2012
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5982.IH
H5982
tjames on DSK6SPTVN1PROD with BILLS
‘‘(1) IN GENERAL.—For purposes of subsection 
(a)(2), an agreement meets the requirements of this 
subsection if— 
‘‘(A) such agreement is a written agree-
ment signed by each person in being who has 
an interest (whether or not in possession) in the 
building described in subsection (b)(1)(A), 
‘‘(B) such agreement provides that the 
only activities carried on at such building are 
activities which are substantially related (aside 
from the need for income or funds or the use 
made of the profits derived) to— 
‘‘(i) the public visitation of such build-
ing and the property described in sub-
section (b)(1)(B) with respect to such 
property, and 
‘‘(ii) the maintenance and preserva-
tion of such building and property for such 
public visitation, and 
‘‘(C) such agreement provides that such 
building will be open to the public for a period 
of at least 25 years beginning on the date on 
which the return of the tax imposed by this 
chapter is filed. 
VerDate Mar 15 2010 
04:48 Jun 23, 2012
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5982.IH
H5982
tjames on DSK6SPTVN1PROD with BILLS
‘‘(2) OPEN TO THE PUBLIC.—For the purposes 
of paragraph (1)(C)— 
‘‘(A) a property shall be treated as being 
open to the public for any year if— 
‘‘(i) a substantial portion of the prop-
erty is open for public visitation for at 
least 8 hours per day and 6 days per week 
during at least any 40 weeks of such year, 
‘‘(ii) the executor notifies the State 
historic agency that the property is open 
and available for public visitation, 
‘‘(iii) public access to the property is 
achievable without undue and deliberate 
difficulty or cost purposely intended to dis-
courage the visitation of the property, 
‘‘(iv) 1 or more of the signatories to 
the agreement or professional or trained 
volunteer staff representing such signato-
ries are available to facilitate the visitation 
of the property through at least 2 methods 
and practices common to the tourism in-
dustry, including telephone, website, mail-
ing address, or ticket booth, and 
VerDate Mar 15 2010 
04:48 Jun 23, 2012
Jkt 019200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5982.IH
H5982
tjames on DSK6SPTVN1PROD with BILLS
‘‘(v) there is an ongoing effort to en-
sure the general public is aware that the 
property is available for visitation, and 
‘‘(B) the 25-year period referred to in such 
paragraph shall be suspended during reasonable 
periods of renovation. 
Communication under subparagraph (A)(v) shall not 
necessarily require expenditure of monies for adver-
tising, but should include periodic contact with 
groups such as State and local historic agencies and 
tourism boards. 
‘‘(d) TAX TREATMENT OF DISPOSITIONS AND FAIL-
URE TO COMPLY WITH AGREEMENT.— 
‘‘(1) IMPOSITION
OF
ADDITIONAL
ESTATE 
TAX.—If, during the 25-year period referred to in 
subsection (c)(1)(C)— 
‘‘(A) any person signing the written agree-
ment referred to in subsection (a)(2) disposes 
of any interest in the building subject to such 
agreement, or 
‘‘(B) there is a violation of any provision 
of such agreement (as determined under regula-
tions prescribed by the Secretary), 
then there is hereby imposed an additional estate 
tax. 
VerDate Mar 15 2010 
04:48 Jun 23, 2012
Jkt 019200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5982.IH
H5982
tjames on DSK6SPTVN1PROD with BILLS
‘‘(2) EXCEPTION FOR CERTAIN TRANSFEREES 
WHO AGREE TO BE BOUND BY AGREEMENT.—No tax 
shall be imposed under paragraph (1) by reason of 
any disposition if the person acquiring such inter-
est— 
‘‘(A) is a qualified organization (as defined 
in section 170(b)(1)(A)) or is a member of the 
family (as defined in section 2032A(e)(2)) of 
the person disposing of such interest, and 
‘‘(B) agrees to be bound by the agreement 
referred to in subsection (a)(2) and to be liable 
for any tax under this subsection in the same 
manner as the person disposing of such inter-
est. 
‘‘(3) AMOUNT
OF
ADDITIONAL
TAX.—The 
amount of the additional tax imposed by paragraph 
(1) with respect to any property shall be an amount 
equal to the excess of— 
‘‘(A) what would (but for subsection (a)) 
have been the tax imposed by section 2001 (re-
duced by the credits allowable), over 
‘‘(B) the tax imposed by section 2001 (as 
so reduced). 
‘‘(4) DUE DATE.—The additional tax imposed 
by this subsection shall be due and payable on the 
VerDate Mar 15 2010 
04:48 Jun 23, 2012
Jkt 019200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5982.IH
H5982
tjames on DSK6SPTVN1PROD with BILLS
day which is 9 months after the date of the disposi-
tion or violation referred to in paragraph (1). 
‘‘(5) LIABILITY FOR TAX.—Any person signing 
the agreement referred to in subsection (a)(2) (other 
than the executor) shall be personally liable for the 
additional tax imposed by this subsection. If more 
than 1 person is liable under this subsection, all 
such persons shall be jointly and severally liable. 
‘‘(6) CERTAIN OTHER RULES TO APPLY.—Rules 
similar to the rules of sections 1016(c), 2013(f), and 
2032A(f) shall apply for purposes of this sub-
section.’’. 
(b) COORDINATION WITH GIFT TAX.—Section 2512 
of the Internal Revenue Code of 1986 is amended by re-
designating subsection (c) as subsection (d) and by insert-
ing after subsection (b) the following new subsection: 
‘‘(c) For the purposes of this chapter, the value of 
qualified historic property (as defined in section 
2032B(b)(1)) transferred for less than an adequate and 
full consideration shall be valued under section 2032B.’’. 
(c) TECHNICAL AMENDMENTS.— 
(1) Subparagraph (A) of section 2056A(b)(10) 
of the Internal Revenue Code of 1986 is amended by 
inserting ‘‘2032B,’’ after ‘‘2032A,’’. 
VerDate Mar 15 2010 
04:48 Jun 23, 2012
Jkt 019200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5982.IH
H5982
tjames on DSK6SPTVN1PROD with BILLS