H.R. 390House112th Congress (2011-2013)In Committee

Family Farm Preservation and Conservation Estate Tax Act

Introduced January 20, 2011

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

January 20, 2011

View full timeline
HouseIntro Referral

Introduced in House

January 20, 2011

HouseIntro Referral

Referred to the House Committee on Ways and Means.

January 20, 2011

Floor Debate

24 members

What members said about H.R. 390 on the floor

11 Republicans13 Democrats
Frank R. Wolf
Rep. Frank R. WolfR-VA-10 · May 8, 2012

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.R. 5326, and that I may include…

Chaka Fattah
Rep. Chaka FattahD-PA-2 · May 8, 2012

Mr. Chair, I yield myself such time as I may consume. I want to start out first and foremost by thanking my colleague and the chairman of the subcommittee, Frank Wolf, for continuing to be a model…

Ralph M. Hall
Rep. Ralph M. HallR-TX-4 · May 8, 2012

I, of course, rise in support of H.R. 5326, the Commerce, Justice, Science, and Related Agencies Appropriations Act 2013. This bill includes over $30 billion for four key agencies under the Science,…

Eddie Bernice Johnson
Rep. Eddie Bernice JohnsonD-TX-30 · May 8, 2012

Mr. Chair, funding for research, innovation, and STEM education is an investment in our future, perhaps one of the most important investments we make as a nation. China, the European Union, and many…

Marcy Kaptur
Rep. Marcy KapturD-OH-9 · May 8, 2012

I thank Ranking Member Fattah for yielding me this time. Mr. Chairman, I reluctantly rise today to oppose the fiscal year 2013 Commerce, Justice, Science and Related Agencies appropriations bill, but…

Show 8 more
Tom McClintock
Rep. Tom McClintockR-CA-4 · May 8, 2012

Madam Chairman, I have an amendment at the desk. Madam Chairman, this amendment cuts more than a quarter-billion dollars in unauthorized appropriations from the International Trade Administration.…

Norman D. Dicks
Rep. Norman D. DicksD-WA-6 · May 8, 2012

Mr. Speaker, I thank Ranking Member Fattah for yielding to me and for his hard work on this important bill. As we begin the floor consideration of the first of the 2013 appropriations bills, I would…

Mike Pompeo
Rep. Mike PompeoR-KS-4 · May 8, 2012

Madam Chairman, I rise in opposition to the amendment. I rise in opposition to this amendment. Just because you call something ``economic development'' does not make it so. We could name an Agency…

Harold Rogers
Rep. Harold RogersR-KY-5 · May 8, 2012

I thank the chairman for yielding the time. I rise in strong support of this bill. This bill, the first for fiscal '13, marks one of the earliest starts to the appropriations process in recent…

Steve Scalise
Rep. Steve ScaliseR-LA-1 · May 8, 2012

Madam Chair, I have an amendment at the desk. Madam Chair, the amendment that I bring to the desk brings the two Agencies, EDA and Commerce, back to the pre-2008 spending levels. And as we're…

Jose E. Serrano
Rep. Jose E. SerranoD-NY-16 · May 8, 2012

I thank the gentleman for the time. First of all, I'd like to congratulate Chairman Wolf and Ranking Member Fattah for their work, but especially for their continued desire to work together, to work…

Stephen F. Lynch
Rep. Stephen F. LynchD-MA-9 · May 8, 2012

Madam Chair, I believe I have an amendment at the desk. Madam Chair, I rise to offer an amendment to H.R. 5326, making appropriations for the Departments of Commerce, Justice, Science, and Related…

Paul C. Broun
Rep. Paul C. BrounR-GA-10 · May 8, 2012

Madam Chairman, I have an amendment at the desk. This amendment would reduce the administrative spending salaries and expense accounts in the underlying bill by just 3 percent. During this time of…

Show 11 more
Michael H. Michaud
Rep. Michael H. MichaudD-ME-2 · May 8, 2012

Madam Chair, I have an amendment at the desk. I rise today to offer an amendment to restore funding to the Economic Development Administration. EDA is the only Federal Agency with the single mission…

Gary C. Peters
Rep. Gary C. PetersD-MI-9 · May 8, 2012

I rise to offer an amendment on this paragraph. Mr. Chairman, there's a lot of talk here in Washington about the need to cut our budget deficits; and while that is certainly true, we also need to be…

Maxine Waters
Rep. Maxine WatersD-CA-35 · May 8, 2012

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, my amendment to H.R. 5326 would fully fund the Department of Justice's financial and mortgage fraud enforcement activities as well as the…

Kevin Yoder
Rep. Kevin YoderR-KS-3 · May 8, 2012

Mr. Chairman, I rise today in support of the Commerce- Justice-Science 2013 appropriations bill, our first appropriations bill of the upcoming fiscal year. I'd like to commend the chairman and…

Trey Gowdy
Rep. Trey GowdyR-SC-4 · May 8, 2012

Madam Chair, I have an amendment at the desk. Madam Chairwoman, for well over a year now, committees of Congress have been trying to answer basic, fundamental questions about an ill-conceived,…

David N. Cicilline
Rep. David N. CicillineD-RI-1 · May 8, 2012

Madam Chair, I have an amendment at the desk. Madam Chairman, in an effort to drive innovation and regional collaboration, the America COMPETES Reauthorization Act of 2010 mandated the creation of a…

Nick J. Rahall II
Rep. Nick J. Rahall IID-WV-3 · May 8, 2012

Madam Chair, I rise in opposition to the amendment offered by the gentleman from Kansas, Mr. Pompeo, to eliminate funding for the Economic Development Administration (EDA). The importance of EDA…

Brad Miller
Rep. Brad MillerD-NC-13 · May 8, 2012

I move to strike the last word. Mr. Chairman, I did not want to cut the spending for NASA either, but the financial crisis of 2008, from which we are still suffering, cost Americans trillions of…

Colleen Hanabusa
Rep. Colleen HanabusaD-HI-1 · May 8, 2012

Madam Chairman, I have an amendment at the desk. Madam Chairman, first I would like to say that this is a bipartisan amendment. Congressman Young from Alaska has joined in the amendment, as well as…

Jon Runyan
Rep. Jon RunyanR-NJ-3 · May 8, 2012

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, my amendment transfers $22.418 million from the General Administration Fund to the Edward Byrne Memorial Justice Assistance Grant program,…

Michael G. Grimm
Rep. Michael G. GrimmR-NY-13 · May 8, 2012

Madam Chair, I have an amendment at the desk. Madam Chair, I rise today to offer an amendment I introduced along with my colleagues, Mr. King of New York, Mr. Barletta, and Mr. Runyan, that would…

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in HouseIssued January 20, 2011

I

112th CONGRESS

1st Session

H. R. 390

IN THE HOUSE OF REPRESENTATIVES

January 20, 2011

Mr. Thompson of California 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 provide an exclusion from the gross estate for certain farmlands and lands subject to qualified conservation easements, and for other purposes.

1.

Short title

This Act may be cited as the Family Farm Preservation and Conservation Estate Tax Act.

2.

Exclusion from gross estate for certain farmland so long as farmland use continues

(a)

In General

Part III of subchapter A of chapter 11 of the Internal Revenue Code of 1986 (relating to gross estate) is amended by inserting after section 2033 the following new section:

2033A.

Exclusion of certain farmland so long as use as farmland continues

(a)

In general

In the case of an estate of a decedent to which this section applies, if the executor makes the election described in subsection (f), 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 decedent’s death) a citizen or resident of the United States, and

(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, except that material participation shall also include any rental of real estate and related property between the estate of the decedent or any successor thereto and any tenant so long as the tenant uses the real estate and related property to produce agricultural or horticultural commodities, including livestock, bees, poultry, orchards and woodlands, timber and fur-bearing animals and wildlife, on such farmland.

Rules similar to the rules of paragraphs (4) and (5) of section 2032A(b) shall apply for purposes of subparagraph (B).
(c)

Definitions and special rule

For purposes of this section—

(1)

Qualified farmland

The term qualified farmland means any real property—

(A)

which is located in the United States,

(B)

which is used as a farm for farming purposes, and

(C)

which was acquired from or passed from the decedent to a qualified heir of the decedent 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)

Member of family

A member of a family, with respect to any individual, means—

(A)

a member of the family (as defined by section 2031A(e)(2)), and

(B)

includes—

(i)

a lineal descendant of any spouse described in subparagraph (D) of section 2032A(e)(2),

(ii)

a lineal descendant of a sibling of a parent of such individual,

(iii)

a spouse of any lineal descendant described in clause (ii), and

(iv)

a lineal descendant of a spouse described in clause (iii).

(3)

Adjusted value

The term adjusted value means the value of farmland for purposes of this chapter (determined without regard to this section), reduced by the amount deductible under paragraph (3) or (4) of section 2053(a).

(4)

Other terms

Any other term used in this section which is also used in section 2032A shall have the same meaning given such term by section 2032A.

(d)

Tax treatment of dispositions and failures to use for farming purposes

(1)

Imposition of recapture tax

If, at any time after the decedent’s death—

(A)

the qualified heir disposes of any interest 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 purposes,

then there is hereby imposed a recapture tax on such disposition or cessation of use.
(2)

Amount of recapture tax

The amount of the tax imposed by paragraph (1) shall be the excess of—

(A)

the tax which would have been imposed by section 2001 on the estate of the decedent but determined as if such estate included the interest in qualified farmland described in paragraph (1) which was so disposed of or ceased to be so used, reduced by the credits allowable against such tax, over

(B)

the tax imposed by section 2001 on the estate of the decedent, reduced by such credits.

For purposes of this paragraph, the value of the interest in qualified farmland specified in subparagraph (A) shall be the adjusted value of such interest as of the date of the disposition or cessation of such interest described in paragraph (1).
(3)

Regulations

The Secretary may prescribe such regulations as may be necessary or appropriate to carry out this subsection, including regulations requiring record keeping and information reporting, except that the Secretary may not impose a lien on the estate of the decedent or qualified farmland for such purposes.

(e)

Application of other rules

Rules similar to the rules of subsections (e) (other than paragraph (13) thereof), (f), (g), (h), and (i) of section 2032A shall apply for purposes of this section.

(f)

Election

The election under this subsection shall be made on or before the due date (including extensions) for filing the return of tax imposed by section 2001 and shall be made on such return.

.

(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:

.

(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.

3.

Temporary exclusion of qualified conservation easements

(a)

In general

Part III of subchapter A of chapter 11 of the Internal Revenue Code of 1986 (relating to gross estate), as amended by section 2, is amended by inserting after section 2033A the following new section:

2033B.

Temporary exclusion of qualified conservation easements

(a)

In general

In the case of an estate of a decedent to which this section applies, if the executor makes the election described in subsection (d)—

(1)

the value of the gross estate shall not include the value of land subject to a qualified conservation easement included in the estate, but

(2)

a tax under subsection (b) shall apply.

(b)

Tax treatment of dispositions and for use incompatible with conservation easement

(1)

Imposition of recapture tax

If, at any time after the decedent’s death—

(A)

the qualified heir disposes of any interest in the land described in subsection (a)(1) (other than by a disposition to a member of his family), or

(B)

the qualified heir uses any portion of the land described in subsection (a)(1) in a manner which violates the terms of such easement,

then there is hereby imposed a recapture tax on such disposition or use.
(2)

Amount of recapture tax

The amount of the tax imposed by paragraph (1) shall be the excess of—

(A)

the tax which would have been imposed by section 2001 on the estate of the decedent, determined as if—

(i)

section 2031(c) did not apply, and

(ii)

as if such estate included the interest described in paragraph (1)(A) or the portion described in paragraph (1)(B), as applicable,

reduced by the credits allowable against such tax, over
(B)

the tax imposed by section 2001 on the estate of the decedent, reduced by such credits.

For purposes of this paragraph, the value of any interest in land or portion of land subject to a qualified conservation easement shall be the fair market value of such interest or portion as of the date of the disposition or use of such interest or portion described in paragraph (1).
(3)

Regulations

The Secretary may prescribe such regulations as may be necessary or appropriate to carry out this subsection, including regulations requiring record keeping and information reporting, except that the Secretary may not impose a lien on the estate of the decedent, land subject to a qualified conservation easement, or qualified conservation easement for such purposes.

(c)

Land subject to qualified conservation easement

For purposes of this section, the terms land subject to a qualified conservation easement and qualified conservation easement have the meanings given such terms by section 2031(c)(8).

(d)

Election

The election under this subsection shall be made on or before the due date (including extensions) for filing the return of tax imposed by section 2001 and shall be made on such return.

.

(b)

Clerical amendment

The table of sections for subchapter B of chapter 62 of such Code is amended by adding at the end the following new item:

.

(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.

4.

Modification of definition of qualified conservation easement

(a)

In general

Subparagraph (B) of section 2031(c)(8) of the Internal Revenue Code of 1986 is amended by striking and the restriction on the use of such interest described in section 170(h)(2)(C) shall include a prohibition on more than a de minimis use for a commercial recreational activity.

(b)

Effective date

The amendments made by this section shall apply to estates of decedents dying after the date of the enactment of this Act.

5.

Modification of rules relating to valuation of certain farm, etc., real property

(a)

Disposition of interest subject to qualified conservation easement

Subparagraph (A) of section 2032A(c)(1) of the Internal Revenue Code of 1986 is amended by striking family) and inserting family or by a disposition to any other person when such interest in real property is subject to a qualified conservation easement (as defined in section 2031(c)(8)(B))).

(b)

Woodlands subject to management plan

Paragraph (2) of section 2032A(c) of such Code is amended by adding at the end the following new subparagraph:

(F)

Exception for woodlands subject to management plan

Subparagraph (E) shall not apply to any disposition or severance of standing timber on a qualified woodland that is made pursuant to—

(i)

a written forest management plan developed by a credentialed professional forester,

(ii)

a written forest management plan that is equivalent to a forest stewardship plan, or

(iii)

a third-party audited forest certification system or similar land management protocol.

.

(c)

Sale of conservation easement not a disposition

Paragraph (8) of section 2032A(c) of such Code is amended—

(1)

by striking A qualified and inserting Neither a qualified, and

(2)

by inserting nor a sale of a conservation easement limiting the use of qualified real property after otherwise.

(d)

Farm defined

Paragraph (4) of section 2032A(e) of such Code is amended by striking orchards and woodlands and inserting orchards, woodlands, and properties managed to provide habitat in support of fish and wildlife dependent recreation.

(e)

Farming purpose defined

Paragraph (5) of section 2032A(e) of such Code is amended—

(1)

in subparagraph (A) by inserting , silvicultural, after agricultural, and

(2)

by striking and at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting , and, and by adding at the end the following:

(D)

creating, restoring, enhancing, or maintaining habitat for the purpose of generating revenue from nature-oriented recreational opportunities, including hunting, fishing, wildlife observation, and related fish and wildlife dependent recreation.

.

(f)

Effective date

The amendments made by this section shall apply to estates of decedents dying after the date of the enactment of this Act.