I 
113TH CONGRESS 
1ST SESSION H. R. 2713 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
gain from the sale or grant of conservation easements and to allow 
the sale or grant of conservation easements in the case of the special 
estate tax valuation provisions for certain farm and other trade or busi-
ness real property. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 17, 2013 
Mr. MEADOWS 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 from the sale or grant of con-
servation easements and to allow the sale or grant of 
conservation easements in the case of the special estate 
tax valuation provisions for certain farm and other trade 
or business real property. 
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 ‘‘Capital Gains Ease-
ment Act of 2013’’. 
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SEC. 2. EXCLUSION OF GAIN FROM SALE OR GRANT FOR 
REAL PROPERTY CONSERVATION PURPOSES. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting before section 140 the following new section: 
‘‘SEC. 139E. GAIN FROM SALE OR GRANT FOR CONSERVA-
TION PURPOSES. 
‘‘(a) IN GENERAL.—Gross income shall not include 
any gain from the sale or grant of a qualified real property 
interest to a qualified organization exclusively for con-
servation purposes. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED REAL PROPERTY INTEREST.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
real property interest’ means any of the fol-
lowing interests in real property: 
‘‘(i) The entire interest of the tax-
payer. 
‘‘(ii) A remainder interest. 
‘‘(iii) A restriction (granted in per-
petuity) on the use which may be made of 
the real property. 
‘‘(B) SPECIAL RULE FOR MINERAL INTER-
ESTS.—An interest in real property shall not 
fail to be treated as a qualified real property in-
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terest solely by reason of a retention of a quali-
fied mineral interest. 
‘‘(2) QUALIFIED
ORGANIZATION; 
CONSERVA-
TION PURPOSES.—The terms ‘qualified organization’ 
and ‘conservation purpose’ shall have the respective 
meanings given such terms by section 170(h).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting before the item relating to section 
140 the following new item: 
‘‘Sec. 139E. Gain from sale or grant of conservation easement.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 3. SALE OF CONSERVATION EASEMENT NOT A DIS-
POSITION FOR PURPOSES OF SPECIAL ES-
TATE TAX REAL ESTATE VALUATION RULES. 
(a) 
IN
GENERAL.—Paragraph 
(8) 
of 
section 
2032A(c) of the Internal Revenue Code of 1986 is amend-
ed by inserting ‘‘or a sale or grant to which section 139E 
applies’’ after ‘‘by gift or otherwise’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to sales or grants after the date 
of the enactment of this Act. 
Æ 
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