Title: Charitable Conservation Easement Program Integrity Act of 2020
Policy area: Taxation

Summary:
Charitable Conservation Easement Program Integrity Act of 2020
This bill limits the aggregate amount of a partner's annual tax deductions for qualified conservation contributions of a partnership to 2.5 times the partner's adjusted basis in the partnership. (Under current law, a qualified conservation contribution is the contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes.)
The limitation applies for the first three taxable years after the individual becomes a partner in the partnership. It does not apply to certain family partnerships.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4751 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4751

  To amend the Internal Revenue Code of 1986 to limit the charitable 
      deduction for certain qualified conservation contributions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 29, 2020

Mr. Daines (for himself, Mr. Grassley, and Mr. Roberts) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to limit the charitable 
      deduction for certain qualified conservation contributions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Charitable Conservation Easement 
Program Integrity Act of 2020''.

SEC. 2. LIMITATION ON DEDUCTION FOR QUALIFIED CONSERVATION 
              CONTRIBUTIONS MADE BY PASS-THROUGH ENTITY.

    (a) In General.--Section 170(h) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(7) Limitation on deduction for qualified conservation 
        contributions made by pass-through entity.--
                    ``(A) In general.--In the case of any qualified 
                conservation contribution of any partnership, no amount 
                of such contribution may be taken into account under 
                this section by any partner of such partnership as a 
                distributive share of such contribution if the 
                aggregate amount so taken into account by such partner 
                for the taxable year would (but for this paragraph) 
                exceed 2.5 times the portion of the adjusted basis of 
                such partner's interest in such partnership (determined 
                immediately before such contribution and without regard 
                to section 752) which is allocable (under rules similar 
                to the rules of section 755) to the qualified real 
                property interest with respect to which such 
                contribution is made.
                    ``(B) Limitation to first-tier partnerships.--
                Except as may be otherwise provided by the Secretary, 
                no distributive share of a qualified conservation 
                contribution shall be taken into account under this 
                section if the interest in the partnership making the 
                contribution is held through one or more partnerships 
                or pass-through entities.
                    ``(C) Exception for contributions outside 3-year 
                holding period.--Subparagraphs (A) and (B) shall not 
                apply to a partner's distributive share of a qualified 
                conservation contribution if such contribution is 
                made--
                            ``(i) at least 3 years after the date the 
                        partnership acquired the entirety of the 
                        qualified real property interest with respect 
                        to which such contribution is made, and
                            ``(ii) at least 3 years after the date the 
                        partner acquired the partner's entire interest 
                        in the partnership with respect to which such 
                        distributive share is determined (including, 
                        for purposes of subparagraph (B), any such 
                        interest held through one or more partnerships 
                        or pass-through entities).
                    ``(D) Exception for family partnerships.--This 
                paragraph shall not apply with respect to any 
                partnership if substantially all of the partnership 
                interests in such partnership are held by individuals 
                who are related within the meaning of section 
                152(d)(2).
                    ``(E) Application to other pass-through entities.--
                Except as may be otherwise provided by the Secretary, 
                rules similar to the rules of this paragraph shall 
                apply with respect to qualified conservation 
                contributions of S corporations and other pass-through 
                entities.
                    ``(F) Regulations.--The Secretary shall prescribe 
                such regulations or other guidance as may be necessary 
                to carry out, and prevent the avoidance of, the 
                purposes of this paragraph.''.
    (b) Effective Date.--
            (1) In general.--Except as otherwise provided in paragraph 
        (2), this section shall apply to contributions made in taxable 
        years ending after December 23, 2016. No inference is intended 
        as to the appropriate treatment of contributions made in 
        taxable years ending on or before such date or as to any 
        activity not described in section 170(h)(7) of the Internal 
        Revenue Code of 1986, as added by this section.
            (2) Limitation to first-tier partnerships.--Subparagraph 
        (B) of section 170(h)(7) of the Internal Revenue Code of 1986, 
        as added by this section, shall apply to contributions made 
        after the date of the enactment of this Act.
                                 <all>