[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 701 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 701
To amend the Internal Revenue Code of 1986 to encourage contributions
of capital gain real property made for conservation purposes.
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IN THE SENATE OF THE UNITED STATES
March 25, 2003
Mr. Baucus (for himself and Mr. Grassley) 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 encourage contributions
of capital gain real property made for conservation purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. MODIFICATIONS TO ENCOURAGE CONTRIBUTIONS OF CAPITAL GAIN
REAL PROPERTY MADE FOR CONSERVATION PURPOSES.
(a) In General.--Section 170(h) of the Internal Revenue Code of
1986 (relating to qualified conservation contribution) is amended by
adding at the end the following new paragraph:
``(7) Additional incentives for qualified conservation
contributions.--
``(A) In general.--In the case of any qualified
conservation contribution (as defined in paragraph (1))
made by an individual--
``(i) subparagraph (C) of subsection (b)(1)
shall not apply,
``(ii) except as provided in subparagraph
(B)(i), subsections (b)(1)(A) and (d)(1) shall
be applied separately with respect to such
contributions by treating references to 50
percent of the taxpayer's contribution base as
references to the amount of such percentage of
such base reduced by the amount of other
contributions allowable under subsection
(b)(1)(A), and
``(iii) subparagraph (A) of subsection
(d)(1) shall be applied--
``(I) by substituting `15
succeeding taxable years' for `5
succeeding taxable years', and
``(II) by applying clause (ii) to
each of the 15 succeeding taxable
years.
``(B) Special rules for eligible farmers and
ranchers.--
``(i) In general.--In the case of any such
contributions made by an eligible farmer or
rancher--
``(I) if the taxpayer is an
individual, subsections (b)(1)(A) and
(d)(1) shall be applied separately with
respect to such contributions by
substituting `the taxpayer's
contribution base reduced by the amount
of other contributions allowable under
subsection (b)(1)(A)' for `50 percent
of the taxpayer's contribution base'
each place it appears, and
``(II) if the taxpayer is a
corporation, subsections (b)(2) and
(d)(2) shall be applied separately with
respect to such contributions,
subsection (b)(2) shall be applied with
respect to such contributions as if
such subsection did not contain the
words `10 percent of' and as if
subparagraph (A) thereof read `the
deduction under this section for
qualified conservation contributions',
and rules similar to the rules of
subparagraph (A)(iii) shall apply for
purposes of subsection (d)(2).
``(ii) Definition.--For purposes of clause
(i), the term `eligible farmer or rancher'
means a taxpayer whose gross income from the
trade or business of farming (within the
meaning of section 2032A(e)(5)) is at least 51
percent of the taxpayer's gross income for the
taxable year, and, in the case of a C
corporation, the stock of which is not publicly
traded on a recognized exchange.''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made after the date of the enactment of this Act.
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