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. 5019 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 5019
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
December 15, 2020
Mr. Daines (for himself, Ms. Stabenow, Mr. Grassley, and Mr. Wyden)
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 (whether
directly or as a distributive share of such
contribution of another 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) Exception for contributions outside 3-year
holding period.--Subparagraph (A) 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,
``(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, and
``(iii) if the interest in the partnership
making such contribution is held through 1 or
more partnerships, at least 3 years after each
such partnership acquired the entirety of the
interest in any such partnership with respect
to which such distributive share is determined.
``(C) Exception for family partnerships.--
Subparagraph (A) shall not apply with respect to any
qualified conservation contribution made by any
partnership if substantially all of the partnership
interests in such partnership are held, directly or
indirectly, by individuals who are members of the same
family (within the meaning of section 529(e)(2)).
``(D) Application to other pass-through entities.--
Except as may be otherwise provided by the Secretary,
the rules of this paragraph shall apply to S
corporations and other pass-through entities in the
same manner as such rules apply to partnerships.
``(E) 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, including, in the case of
tiered partnerships, such reporting to the Secretary
and among such partnerships as the Secretary determines
appropriate.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to contributions
made in taxable years ending after December 23, 2016.
(2) Certified historic structures.--In the case of
contributions the conservation purpose (as defined in section
170(h)(4) of the Internal Revenue Code of 1986) of which is the
preservation of a certified historic structure (as defined in
section 170(h)(4)(C) of such Code), the amendment made by this
section shall apply to contributions made in taxable years
beginning after December 31, 2018.
(3) No inference.--No inference is intended as to the
appropriate treatment of contributions made in taxable years
ending on or before the date specified in paragraph (1) or (2),
whichever is applicable, or as to any activity not described in
section 170(h)(7) of the Internal Revenue Code of 1986, as
added by this section.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line