Endangered Species Recovery Act of 2006 - Amends the Internal Revenue Code to allow certain landowners whose property contains the habitat of an endangered or threatened species and who enter into a habitat protection agreement a tax credit for costs relating to habitat protection easements and restoration. Places limits on the amount of such credit for calendar years 2007, 2008, 2009, 2010, and 2011.
Allows a tax deduction for expenditures related to recovery plans approved by the Endangered Species Act of 1973.
Excludes from gross income certain payments under: (1) the Partners for Fish and Wildlife Program authorized by the Partners for Fish and Wildlife Act; and (2) the Landowner Incentive Program, the State Wildlife Grants Program, and the Private Stewardship Grants Program authorized by the Fish and Wildlife Act of 1956.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 4087 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 4087
To amend the Internal Revenue Code to provide a tax credit to
individuals who enter into agreements to protect the habitats of
endangered and threatened species, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 6, 2006
Mr. Crapo (for himself, Mrs. Lincoln, Mr. Grassley, Mr. Baucus, and Mr.
Allard) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code to provide a tax credit to
individuals who enter into agreements to protect the habitats of
endangered and threatened species, and for other purposes.
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 ``Endangered Species Recovery Act of
2006''.
SEC. 2. ENDANGERED SPECIES RECOVERY CREDIT.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 30D. ENDANGERED SPECIES RECOVERY CREDIT.
``(a) In General.--In the case of an eligible taxpayer, there shall
be allowed as a credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of--
``(1) the habitat protection easement credit, plus
``(2) the habitat restoration credit.
``(b) Limitation.--
``(1) In general.--The credit allowed under subsection (a)
for any eligible taxpayer for any taxable year shall not exceed
the endangered species recovery credit limitation allocated to
the eligible taxpayer under subsection (f) for the calendar
year in which the taxpayer's taxable year ends.
``(2) Carryforwards.--
``(A) In general.--If the amount of the credit
allowable under subsection (a) for any taxpayer for any
taxable year exceeds the endangered species recovery
credit limitation allocated under subsection (f) to
such taxpayer for the calendar year in which the
taxpayer's taxable year ends, such excess may be
carried forward to the next taxable year for which such
taxpayer is allocated a portion of the endangered
species recovery credit limitation.
``(B) Carryforward of allocation amount.--If the
amount of the endangered species recovery credit
limitation allocated to an eligible taxpayer for any
calendar year under subsection (f) exceeds the amount
of the credit allowed to the taxpayer under subsection
(a) for the taxable year ending in such calendar year,
such excess may be carried forward to the next taxable
year of the taxpayer. For purposes of this paragraph,
any amount carried to another taxable year under this
subparagraph shall be treated as allocated to the
taxpayer for use in such taxable year under subsection
(f).
``(c) Eligible Taxpayer.--For purposes of this section--
``(1) In general.--The term `eligible taxpayer' means--
``(A) a taxpayer who--
``(i) owns real property which contains the
habitat of a qualified species, and
``(ii) enters into a qualified perpetual
habitat protection agreement, a qualified 30-
year habitat protection agreement, or a
qualified habitat protection agreement with the
appropriate Secretary with respect to such real
property, and
``(B) any other taxpayer who--
``(i) is a party to a qualified perpetual
habitat protection agreement, a qualified 30-
year habitat protection agreement, or a
qualified habitat protection agreement, and
``(ii) as part of any such agreement,
agrees to assume responsibility for costs paid
or incurred in protecting or preserving the
habitat which is the subject of such agreement.
``(2) Qualified perpetual habitat protection agreement.--
The term `qualified perpetual habitat protection agreement'
means an agreement--
``(A) under which the taxpayer grants to the
appropriate Secretary, the Secretary of Agriculture, or
a State an easement in perpetuity for the protection of
the habitat of a qualified species, and
``(B) which meets the requirements of paragraph
(5).
``(3) Qualified 30-year habitat protection agreement.--The
term `qualified 30-year habitat protection agreement' means an
agreement--
``(A) under which the taxpayer grants to the
appropriate Secretary, the Secretary of Agriculture, or
a State an easement for a period of not less than 30
years and less than perpetuity for the protection of
the habitat of a qualified species, and
``(B) which meets the requirements of paragraph
(5).
``(4) Qualified habitat protection agreement.--The term
`qualified habitat protection agreement' means an agreement--
``(A) under which the taxpayer enters into an
agreement with the appropriate Secretary, the Secretary
of Agriculture, or a State to protect the habitat of a
qualified species for a specified period of time, and
``(B) which meets the requirements of paragraph
(5).
``(5) Requirements.--An agreement meets the requirements of
this paragraph if--
``(A) the agreement is not inconsistent with any
recovery plan which has been approved for a qualified
species under section 4 of the Endangered Species Act
of 1973,
``(B) the appropriate Secretary and the eligible
taxpayer enter into a habitat management plan designed
to--
``(i) restore or enhance the habitat of a
qualified species, or
``(ii) reduce threats to a qualified
species through the management of the habitat,
and
``(C) the appropriate Secretary ensures that the
eligible taxpayer is provided with technical assistance
in carrying out the duties of the taxpayer under the
terms of the agreement.
``(d) Habitat Protection Easement Credit.--
``(1) In general.--For purposes of subsection (a)(1), the
habitat protection easement credit for any taxable year is an
amount equal to--
``(A) in the case of an eligible taxpayer who has
entered into a qualified perpetual habitat protection
agreement during such taxable year, 100 percent of the
excess (if any) of--
``(i) the fair market value of the real
property with respect to which the qualified
perpetual habitat protection agreement is made,
determined on the day before such agreement is
entered into, over
``(ii) the fair market value of such
property, determined on the day after such
agreement is entered into,
``(B) in the case of an eligible taxpayer who has
entered into a qualified 30-year habitat protection
agreement during such taxable year, 75 percent of such
excess, and
``(C) in the case of any other eligible taxpayer,
zero.
``(2) Reduction for amount received for easement.--The
credit allowed under subsection (a)(1) shall be reduced by any
amount received by the taxpayer in connection with the
easement.
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a)(1) for any taxable year shall not
exceed the sum of--
``(A) the taxpayer's regular tax liability for the
taxable year reduced by the sum of the credits
allowable under subpart A and sections 27, 30, 30B, and
30C, and
``(B) the tax imposed by section 55(a) for the
taxable year.
``(4) Carryforward of unused credit.--If the credit
allowable under subsection (a)(1) for any taxable year exceeds
the limitation imposed by paragraph (3) for such taxable year,
such excess shall be carried to the succeeding taxable year and
added to the credit allowable under subsection (a)(1) for such
succeeding taxable year.
``(5) Qualified appraisals required.--No amount shall be
taken into account under this subsection unless the eligible
taxpayer includes with the taxpayer's return for the taxable
year a qualified appraisal (within the meaning of section
170(f)(11)(E)) of the real property.
``(e) Habitat Restoration Credit.--
``(1) In general.--For purposes of subsection (a)(2), the
habitat restoration credit for any taxable year shall be an
amount equal to--
``(A) in the case of a qualified perpetual habitat
protection agreement, 100 percent of the costs paid or
incurred by an eligible taxpayer during such taxable
year pursuant to such agreement,
``(B) in the case of a qualified 30-year habitat
protection agreement, 75 percent of the costs paid or
incurred by an eligible taxpayer during such taxable
year pursuant to such agreement, and
``(C) in the case of a qualified habitat protection
agreement, 50 percent of the costs paid or incurred by
an eligible taxpayer during such taxable year pursuant
to such agreement.
``(2) Limitation based on amount of tax.--The credit
allowed under subsection (a)(2) for any taxable year shall not
exceed the excess (if any) of--
``(A) the regular tax liability for the taxable
year reduced by the sum of the credits allowable under
subpart A and sections 27, 30, 30B, and 30C, over
``(B) the tentative minimum tax for the taxable
year.
``(3) Carryforward of unused credit.--If the credit
allowable under subsection (a)(2) for any taxable year exceeds
the limitation imposed by paragraph (2) for such taxable year,
such excess shall be carried to the succeeding taxable year and
added to the credit allowable under subsection (a)(2) for such
succeeding taxable year.
``(4) Special rules.--
``(A) Certain costs not included.--No credit shall
be allowed under subsection (a)(2) for any cost which
is paid or incurred by a taxpayer to comply with any
requirement of a Federal, State, or local government.
``(B) Subsidized financing.--For purposes of
paragraph (1), the amount of costs paid or incurred by
an eligible taxpayer pursuant to any agreement
described in subsection (c) shall be reduced by the
amount of any financing provided under any Federal or
State program a principal purpose of which is to
subsidize financing for the conservation of the habitat
of a qualified species.
``(f) Endangered Species Recovery Credit Limitation.--
``(1) In general.--There is an endangered species recovery
credit limitation for each calendar year. Such limitation is --
``(A) for 2007, 2008, 2009, 2010, and 2011--
``(i) $300,000,000 with respect to
qualified perpetual habitat protection
agreements,
``(ii) $60,000,000 with respect to
qualified 30-year habitat protection
agreements, and
``(iii) $40,000,000 with respect to
qualified habitat protection agreements, and
``(B) except as provided in paragraph (3), zero
thereafter.
``(2) Allocation of limitation.--
``(A) In general.--The Secretary, in consultation
with the Secretary of the Interior and the Secretary of
Commerce, shall allocate the endangered species
recovery credit limitation to eligible taxpayers.
``(B) Considerations.--In making allocations to
eligible taxpayers under this section, priority shall
be given to taxpayers with agreements--
``(i) relating to habitats that will
significantly increase the likelihood of
recovering and delisting a species as an
endangered species or a threatened species (as
defined under section 2 of the Endangered
Species Act of 1973),
``(ii) that are cost-effective and maximize
the benefits to a qualified species per dollar
expended,
``(iii) relating to habitats of species
which have a federally approved recovery plan
pursuant to section 4 of the Endangered Species
Act of 1973,
``(iv) relating to habitats with the
potential to contribute significantly to the
improvement of the status of a qualified
species,
``(v) relating to habitats with the
potential to contribute significantly to the
eradication or control of invasive species that
are imperiling a qualified species,
``(vi) with habitat management plans that
will manage multiple qualified species,
``(vii) with habitat management plans that
will create adjacent or proximate habitat for
the recovery of a qualified species,
``(viii) relating to habitats for qualified
species with an urgent need for protection,
``(ix) with habitat management plans that
assist in preventing the listing of a species
as endangered or threatened under the
Endangered Species Act of 1973 or a similar
State law,
``(x) with habitat management plans that
may resolve conflicts between the protection of
qualified species and otherwise lawful human
activities, and
``(xi) with habitat management plans that
may resolve conflicts between the protection of
a qualified species and military training or
other military operations.
``(3) Carryover of unused limitation.--If for any calendar
year the limitation under paragraph (1) (after the application
of this paragraph) exceeds the amount allocated to all eligible
taxpayers for such calendar year, the limitation amount for the
following calendar year shall be increased by the amount of
such excess.
``(g) Other Definitions and Special Rules.--
``(1) Appropriate secretary.--The term `appropriate
Secretary' has the meaning given to the term `Secretary' under
section 3(15) of the Endangered Species Act of 1973.
``(2) Habitat management plan.--The term `habitat
management plan' means, with respect to any habitat, a plan
which--
``(A) identifies one or more qualified species to
which the plan applies,
``(B) describes the management practices to be
undertaken by the taxpayer,
``(C) describes the technical assistance to be
provided to the taxpayer and identifies the entity that
will provide such assistance,
``(D) provides a schedule of deadlines for
undertaking such management practices, and
``(E) requires monitoring of the management
practices and the status of the qualified species.
``(3) Qualified species.--The term `qualified species'
means--
``(A) any species listed as an endangered species
or threatened species under the Endangered Species Act
of 1973, or
``(B) any species for which a finding has been made
under section 4(b)(3) of Endangered Species Act of 1973
that listing under such Act may be warranted.
``(4) Taking.--The term `taking' has the meaning given to
such term under the Endangered Species Act of 1973.
``(5) Reduction in basis.--For purposes of this subtitle,
the basis of any property for which a credit is allowable under
subsection (a)(1) shall be reduced by the amount of the credit
so allowed.
``(6) Denial of double benefit.--No deduction shall be
allowed under this chapter for any amount with respect to which
a credit is allowed under subsection (a).
``(7) Certification.--No credit shall be allowed under
subsection (a) unless the appropriate Secretary certifies that
any agreement described in subsection (c) which is entered into
by an eligible taxpayer will contribute to the recovery of a
qualified species.
``(8) Request for authorization of incidental takings.--The
Secretary shall request the appropriate Secretary to consider
whether to authorize under the Endangered Species Act of 1973
takings by an eligible taxpayer of a qualified species to which
an agreement described in subsection (c) relates if the takings
are incidental to--
``(A) the restoration, enhancement, or management
of the habitat pursuant to the habitat management plan
under the agreement, or
``(B) the use of the property to which the
agreement pertains at any time after the expiration of
the easement or the specified period described in
subsection (c)(4)(A), but only if such use will leave
the qualified species at least as well off on the
property as it was before the agreement was made.
``(9) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit under any credit allowable
under subsection (a) if the Secretary, in consultation with the
appropriate Secretary, determines that the eligible taxpayer
has failed to carry out the duties of the taxpayer under the
terms of a qualified perpetual habitat protection agreement, a
qualified 30-year habitat protection agreement, or a qualified
habitat protection agreement.''.
(b) Conforming Amendments.--
(1) Section 1016(a) of the Internal Revenue Code of 1986 is
amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting
``, and'', and by inserting after paragraph (37) the following
new paragraph:
``(38) to the extent provided in section 30D(g)(5).''.
(2) The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 30C the following new item:
``Sec. 30D. Endangered species recovery credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
SEC. 3. DEDUCTION FOR ENDANGERED SPECIES RECOVERY EXPENDITURES.
(a) Deduction for Endangered Species Recovery Expenditures.--
(1) In general.--Paragraph (1) of section 175(c) of the
Internal Revenue Code of 1986 (relating to definitions) is
amended by inserting after the first sentence the following new
sentence: ``Such term shall include expenditures paid or
incurred for the purpose of achieving specific actions
recommended in recovery plans approved pursuant to the
Endangered Species Act of 1973.''.
(2) Conforming amendments.--
(A) Section 175 of such Code is amended by
inserting ``, or for endangered species recovery''
after ``prevention of erosion of land used in farming''
each place it appears in subsections (a) and (c).
(B) The heading of section 175 of such Code is
amended by inserting ``; endangered species recovery
expenditures'' before the period.
(C) The item relating to section 175 in the table
of sections for part VI of subchapter B of chapter 1 of
such Code is amended by inserting ``; endangered
species recovery expenditures'' before the period.
(b) Limitations.--Paragraph (3) of section 175(c) of the Internal
Revenue Code of 1986 (relating to additional limitations) is amended--
(1) in the heading, by inserting ``or endangered species
recovery plan'' after ``conservation plan'', and
(2) in subparagraph (A)(i), by inserting ``or the recovery
plan approved pursuant to the Endangered Species Act of 1973''
after ``Department of Agriculture''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred after the date of the enactment
of this Act.
SEC. 4. EXCLUSION FOR COST SHARING PAYMENTS UNDER THE PARTNERS FOR FISH
AND WILDLIFE ACT AND CERTAIN OTHER PROGRAMS AUTHORIZED BY
THE FISH AND WILDLIFE ACT OF 1956.
(a) In General.--Subsection (a) of section 126 of the Internal
Revenue Code of 1986 (relating to certain cost-sharing payments) is
amended by redesignating paragraph (10) as paragraph (12) and by
inserting after paragraph (9) the following new paragraphs:
``(10) The Partners for Fish and Wildlife Program
authorized by the Partners for Fish and Wildlife Act.
``(11) The Landowner Incentive Program, the State Wildlife
Grants Program, and the Private Stewardship Grants Program
authorized by the Fish and Wildlife Act of 1956.''.
(b) Effective Date.--The amendments made by this section shall
apply to payments received after the date of the enactment of this Act.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S11331-11332)
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S11332-11334)
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