I 
109TH CONGRESS 
1ST SESSION H. R. 3523 
To amend the Internal Revenue Code of 1986 to exclude from estate taxes 
the value of farmland so long as the farmland use continues and to 
repeal the dollar limitation on the estate tax exclusion for land subject 
to a qualified conservation easement. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2005 
Mr. BISHOP of New York 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 estate taxes the value of farmland so long as the 
farmland use continues and to repeal the dollar limita-
tion on the estate tax exclusion for land subject to a 
qualified conservation easement. 
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 ‘‘Estate Tax Deferral 
for Working Farms and Land Conservation Act of 2005’’.
SEC. 2. EXCLUSION FROM GROSS ESTATE OF 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, the value of the gross 
estate shall not include the adjusted value of qualified 
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, 
‘‘(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 
‘‘(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. 
Rules similar to the rules of paragraphs (4) and (5) 
of section 2032A(b) shall apply for purposes of sub-
paragraph (B). 
‘‘(c) DEFINITIONS.—For purposes 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 (within the meaning of section 
2032A(e)), and 
‘‘(C) which was acquired from or passed 
from the decedent to a qualified heir of the de-
cedent and which, on the date of the decedent’s 
death, was being so used by the decedent or a 
member of the decedent’s family. 
‘‘(2) ADJUSTED
VALUE.—The term ‘adjusted 
value’ means the value of farmland for purposes of 
this chapter (determined without regard to this sec-
tion), reduced by the amount deductible under para-
graph (3) or (4) of section 2053(a). 
‘‘(d) TAX TREATMENT OF DISPOSITIONS AND FAIL-
URES TO USE FOR FARMING PURPOSES.—
‘‘(1) IMPOSITION
OF
ADDITIONAL
ESTATE 
TAX.—If, at any time after the decedent’s death and 
before the death of the qualified heir— 
‘‘(A) the qualified heir disposes of any in-
terest in qualified farmland (other than by a 
disposition to a member of his family), or 
‘‘(B) the qualified heir ceases to use the 
real property which was acquired (or passed) 
from the decedent as a farm for farming pur-
poses, then, there is hereby imposed an addi-
tional estate tax. 
‘‘(2) AMOUNT
OF
ADDITIONAL
TAX.—Rules 
similar to the rules of section 2032A(e) shall apply 
for purposes of this subsection.’’ 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter A of chapter 11 of such Code 
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. REPEAL OF DOLLAR LIMITATION ON ESTATE TAX 
EXCLUSION FOR LAND SUBJECT TO QUALI-
FIED CONSERVATION EASEMENT. 
(a) IN GENERAL.—Subsection (c) of section 2031 of 
the Internal Revenue Code of 1986 (relating to Estate tax 
with respect to land subject to a qualified conservation 
easement) is amended by striking paragraph (3) and by 
redesignating the succeeding paragraphs accordingly. 
(b) CONFORMING AMENDMENT.—Paragraph (1) of 
section 2031(c) of such Code is by striking ‘‘the lesser of’’ 
at all that follows and inserting ‘‘the applicable percentage 
of the value of land subject to a qualified conservation 
easement, reduced by the amount of any deduction under 
section 2055(f) with respect to such land.’’ 
(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. 
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