To amend the Internal Revenue Code of 1986 to provide an estate tax credit with respect to property managed according to certain habitat conservation agreements, to provide a credit for certain conservation expenses, and to exclude from income amounts received from others to pay for such expenses.

Amends the Internal Revenue Code to permit an executor to exclude from the value of the gross estate an amount equal to the value of the qualified real property of the decedent which is maintained in accordance with habitat conservation concerns, if the executor files a habitat conservation agreement. Provides for recapture if: (1) an owner dispenses of any interest in the property; or (2) there is a material breach or termination by an owner of any agreement with respect to such property. Permits a disposition by an owner, without recapture, if the owner (or his estate) and the transferee of the property enter into a written agreement under which the transferee agrees to: (1) assume the obligations imposed on the owner under the agreement; (2) assume liability for any tax imposed with respect to any future transfers or breaches; and (3) notify the Secretary of the Interior or of Commerce that the transferee has assumed the obligations and liabilities.

Allows a tax credit in an amount equal to the applicable conservation expense amount. Limits such credit allowed to a maximum of $1,500. Provides for the carryforward of unused credit.

Provides for exclusion from gross income of the amount of any grant which is: (1) made to the taxpayer for the purpose of paying qualified conservation expenses with respect to real property owned by the taxpayer; and (2) used by the taxpayer to pay such expenses.