I 
109TH CONGRESS 
2D SESSION 
H. R. 5056 
To amend the Internal Revenue Code of 1986 to encourage charitable 
contributions of real property for conservation purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 30, 2006 
Mr. FITZPATRICK of Pennsylvania (for himself, Mr. GERLACH, Mr. SIMMONS, 
and Mr. BLUMENAUER) 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 encourage 
charitable contributions of real property for conservation 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ENCOURAGEMENT OF CONTRIBUTIONS OF 
CAPITAL GAIN REAL PROPERTY MADE FOR 
CONSERVATION PURPOSES. 
(a) IN GENERAL.— 
(1) INDIVIDUALS.—Paragraph (1) of subsection 
170(b) of the Internal Revenue Code of 1986 (relat-
ing to percentage limitations) is amended by redesig-
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nating subparagraphs (E) and (F) as subparagraphs 
(F) and (G), respectively, and by inserting after sub-
paragraph (D) the following new subparagraph: 
‘‘(E) CONTRIBUTIONS OF QUALIFIED CON-
SERVATION CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—Any qualified con-
servation contribution (as defined in sub-
section (h)(1)) to an organization described 
in subparagraph (A) shall be allowed to 
the extent the aggregate of such contribu-
tions does not exceed the excess of 50 per-
cent of the taxpayer’s contribution base 
over the amount of all other charitable 
contributions allowable under this para-
graph. 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of contributions described in clause 
(i) exceeds the limitation of clause (i), such 
excess shall be treated (in a manner con-
sistent with the rules of subsection (d)(1)) 
as a charitable contribution to which clause 
(i) applies in each of the 15 succeeding 
years in order of time. 
‘‘(iii) COORDINATION
WITH
OTHER 
SUBPARAGRAPHS.—For purposes of apply-
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ing this subsection and subsection (d)(1), 
contributions described in clause (i) shall 
not be treated as described in subpara-
graph (A), (B), (C), or (D). 
‘‘(iv) QUALIFIED FARMER OR RANCH-
ER.— 
‘‘(I) IN GENERAL.—If the indi-
vidual is a qualified farmer or rancher 
for the taxable year in which the con-
tribution is made, clause (i) shall be 
applied by substituting ‘100 percent’ 
for ‘50 percent’. 
‘‘(II) 
DEFINITION.—For 
pur-
poses of subclause (I), the term ‘quali-
fied farmer or rancher’ means a tax-
payer whose gross income from the 
trade or business of farming (within 
the meaning of section 2032A(e)(5)) 
is greater than 50 percent of the tax-
payer’s gross income for the taxable 
year.’’. 
(2) CORPORATIONS.—Paragraph (2) of section 
170(b) of such Code is amended to read as follows: 
‘‘(2) CORPORATIONS.—In the case of a corpora-
tion— 
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‘‘(A) IN GENERAL.—The total deductions 
under subsection (a) for any taxable year (other 
than for contributions to which subparagraph 
(B) applies) shall not exceed 10 percent of the 
taxpayer’s taxable income. 
‘‘(B) QUALIFIED
CONSERVATION
CON-
TRIBUTIONS BY CERTAIN CORPORATE FARMERS 
AND RANCHERS.— 
‘‘(i) IN GENERAL.—Any qualified con-
servation contribution (as defined in sub-
section (h)(1)) made— 
‘‘(I) by a corporation which, for 
the taxable year during which the con-
tribution is made, is a qualified farm-
er or rancher (as defined in paragraph 
(1)(E)(iv)(II)) and the stock of which 
is not readily tradable on an estab-
lished securities market at any time 
during such year, and 
‘‘(II) to an organization de-
scribed in paragraph (1)(A), shall be 
allowed to the extent the aggregate of 
such contributions does not exceed the 
excess of the taxpayer’s taxable in-
come over the amount of charitable 
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contributions allowable under sub-
paragraph (A). 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of contributions described in clause 
(i) exceeds the limitation of clause (i), such 
excess shall be treated (in a manner con-
sistent with the rules of subsection (d)(2)) 
as a charitable contribution to which clause 
(i) applies in each of the 15 succeeding 
years in order of time. 
‘‘(C) TAXABLE INCOME.—For purposes of 
this paragraph, taxable income shall be com-
puted without regard to— 
‘‘(i) this section, 
‘‘(ii) part VIII (except section 248), 
‘‘(iii) 
any 
net 
operating 
loss 
carrryback to the taxable year under sec-
tion 172, 
‘‘(iv) section 199, and 
‘‘(v) any capital loss carryback to the 
taxable year under section 1212(a)(1).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The second sentence of clause (i) of section 
170(b)(1)(C) of such Code is amended by striking 
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‘‘subparagraph (D)’’ and inserting ‘‘subparagraph 
(D) or (E)’’. 
(2) Clause (i) of section 170(b)(1)(D) of such 
Code is amended by striking ‘‘subparagraph (A)’’ 
and inserting ‘‘subparagraphs (A) or (E)’’. 
(3) Paragraph (2) of section 170(d) of such 
Code is amended by striking ‘‘subsection (b)(2)’’ 
each place it appears and inserting ‘‘subsection 
(b)(2)(A)’’. 
(4) Section 545(b)(2) of such Code is amended 
by striking ‘‘and (D)’’ and inserting ‘‘(D), and (E)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2005, and before Jan-
uary 1, 2008. 
Æ 
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