Opinion ID: 4533768
Heading Depth: 2
Heading Rank: 3

Heading: Governing Code Provisions

Text: The Internal Revenue Code allows a deduction for a “qualified conservation contribution.” See I.R.C. § 170(f)(3)(B)(iii). A “qualified conservation contribution” is a contribution “(A) of a qualified real property interest, (B) to a qualified organization, (C) exclusively for conservation purposes.” Id. § 170(h)(1). A “qualified real property interest” includes “a restriction (granted in perpetuity) on the use which may be made of the real property.” Id. § 170(h)(2). The easement Champions conveyed to the Trust meets this requirement; it restricts use of the property in substantial respects and continues in perpetuity. The Commissioner does not contest this. The Trust is “a qualified organization.” See id. § 170(h)(3) (defining this term). The Commissioner does not contest this. This leaves only one issue: whether this contribution was made “exclusively for conservation purposes.” The Code defines “conservation purpose” to mean: (i) the preservation of land areas for outdoor recreation by, or the education of, the general public, (ii) the protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem, (iii) the preservation of open space (including farmland and forest land) where such preservation is-- 5 Case: 18-14817 Date Filed: 05/13/2020 Page: 6 of 22 (I) for the scenic enjoyment of the general public, or (II) pursuant to a clearly delineated Federal, State, or local governmental conservation policy, and will yield a significant public benefit, or (iv) the preservation of an historically important land area or a certified historic structure. Id. § 170(h)(4)(A) (emphasis added). This case turns on the italicized provisions. The other provisions do not apply. The land is not available for recreation by or use of the general public. There is no qualifying federal, state, or local government conservation policy that applies to this land; that the county designated the land as greenspace is not enough. This is not historically important land, and there is no certified historic structure on it. The issues, then, are whether Champions contributed this easement for “the protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem,” or for “the preservation of open space . . . for the scenic enjoyment of the general public [that] will yield a significant public benefit.”