Charitable Conservation Easement Program Integrity Act of 2020
This bill limits the aggregate amount of a partner's annual tax deductions for qualified conservation contributions of a partnership to 2.5 times the partner's adjusted basis in the partnership. (Under current law, a qualified conservation contribution is the contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes.)
The limitation applies for the first three taxable years after the individual becomes a partner in the partnership. It does not apply to certain family partnerships.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4751 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 4751
To amend the Internal Revenue Code of 1986 to limit the charitable
deduction for certain qualified conservation contributions.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 29, 2020
Mr. Daines (for himself, Mr. Grassley, and Mr. Roberts) 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 limit the charitable
deduction for certain qualified conservation contributions.
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 ``Charitable Conservation Easement
Program Integrity Act of 2020''.
SEC. 2. LIMITATION ON DEDUCTION FOR QUALIFIED CONSERVATION
CONTRIBUTIONS MADE BY PASS-THROUGH ENTITY.
(a) In General.--Section 170(h) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(7) Limitation on deduction for qualified conservation
contributions made by pass-through entity.--
``(A) In general.--In the case of any qualified
conservation contribution of any partnership, no amount
of such contribution may be taken into account under
this section by any partner of such partnership as a
distributive share of such contribution if the
aggregate amount so taken into account by such partner
for the taxable year would (but for this paragraph)
exceed 2.5 times the portion of the adjusted basis of
such partner's interest in such partnership (determined
immediately before such contribution and without regard
to section 752) which is allocable (under rules similar
to the rules of section 755) to the qualified real
property interest with respect to which such
contribution is made.
``(B) Limitation to first-tier partnerships.--
Except as may be otherwise provided by the Secretary,
no distributive share of a qualified conservation
contribution shall be taken into account under this
section if the interest in the partnership making the
contribution is held through one or more partnerships
or pass-through entities.
``(C) Exception for contributions outside 3-year
holding period.--Subparagraphs (A) and (B) shall not
apply to a partner's distributive share of a qualified
conservation contribution if such contribution is
made--
``(i) at least 3 years after the date the
partnership acquired the entirety of the
qualified real property interest with respect
to which such contribution is made, and
``(ii) at least 3 years after the date the
partner acquired the partner's entire interest
in the partnership with respect to which such
distributive share is determined (including,
for purposes of subparagraph (B), any such
interest held through one or more partnerships
or pass-through entities).
``(D) Exception for family partnerships.--This
paragraph shall not apply with respect to any
partnership if substantially all of the partnership
interests in such partnership are held by individuals
who are related within the meaning of section
152(d)(2).
``(E) Application to other pass-through entities.--
Except as may be otherwise provided by the Secretary,
rules similar to the rules of this paragraph shall
apply with respect to qualified conservation
contributions of S corporations and other pass-through
entities.
``(F) Regulations.--The Secretary shall prescribe
such regulations or other guidance as may be necessary
to carry out, and prevent the avoidance of, the
purposes of this paragraph.''.
(b) Effective Date.--
(1) In general.--Except as otherwise provided in paragraph
(2), this section shall apply to contributions made in taxable
years ending after December 23, 2016. No inference is intended
as to the appropriate treatment of contributions made in
taxable years ending on or before such date or as to any
activity not described in section 170(h)(7) of the Internal
Revenue Code of 1986, as added by this section.
(2) Limitation to first-tier partnerships.--Subparagraph
(B) of section 170(h)(7) of the Internal Revenue Code of 1986,
as added by this section, shall apply to contributions made
after the date of the enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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