article: SECTION 1. MODIFICATIONS TO ENCOURAGE CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR CONSERVATION PURPOSES AND QUALIFIED CONSERVATION CONTRIBUTIONS. (a) Contributions of Capital Gain Real Property Made for Conservation Purposes and of Qualified Conservation Contributions Not Subject to Special Limitation on Contributions of Capital Gain Property.--Subparagraph (C) of section 170(b)(1) of the Internal Revenue Code of 1986 (relating to special limitation with respect to contributions described in subparagraph (A) of capital gain property) is amended by redesignating clause (iv) as clause (v) and by inserting after clause (iii) the following new clause: ``(iv) In the case of charitable contributions described in subparagraph (A) of capital gain property, clauses (i) and (ii) shall not apply to-- ``(I) any qualified conservation contribution (as defined in section 170(h)), or ``(II) any other contribution of capital gain property which is real property if the contribution is of the donor's entire interest in such property and is to a qualified organization (as defined in section 170(h)(3)) which is organized for conservation purposes (as defined in section 170(h)(4)(A)) and which provides the taxpayer, at the time of such donation, a letter of intent which contains an acknowledgment of the donee's intent that the property is being acquired for any such conservation purpose.''. (b) Unlimited Carryover for Contributions of Capital Gain Real Property for Conservation Purposes and of Qualified Conservation Contributions of Capital Gain Property.--Paragraph (1) of section 170(d) of such Code in amended by adding at the end the following new subparagraph: ``(C) Unlimited carryover for contributions of capital gain real property for conservation purposes and of qualified conservation contributions of capital gain property.--The 5 taxable year limitation in subparagraph (A) shall not apply to any charitable contribution to which clauses (i) and (ii) of subsection (b)(1)(C) do not apply by reason of clause (iv) thereof. For purposes of this paragraph, the excess described in the material preceding clause (i) of subparagraph (A) shall be treated as attributable to contributions described in the preceding sentence of this subparagraph to the extent of such contributions.''. (c) Effective Date.--The amendment made by this section shall apply to contributions made in taxable years beginning after the date of the enactment of this Act. SEC. 2. MODIFICATION OF RULES RELATING TO ESTATE TAX EXCLUSION FOR LAND SUBJECT TO QUALIFIED CONSERVATION EASEMENT. (a) Repeal of Certain Restrictions on Where Land Is Located.-- Clause (i) of section 2031(c)(8)(A) of the Internal Revenue Code of 1986 is amended to read as follows: ``(i) which is located in the United States or any possession of the United States,''. (b) Repeal of Limitation on Exclusion.-- (1) In general.--Paragraph (1) of section 2031(c) of such Code is amended by striking ``the lesser of--'' and all that follows and inserting ``the applicable percentage of the value of land subject to a qualified conservation easement, reduced by the amount of any deduction under section 2055(f) with respect to such land.'' (2) Conforming amendments.-- (A) Subsection (c) of section 2031 of such Code is amended by striking paragraph (3) and by redesignating paragraphs (4) through (10) as paragraphs (3) through (9), respectively. (B) Paragraphs (2) and (6) of section 2031(c) of such Code, as redesignated by subparagraph (A), are each amended by striking ``paragraph (5)'' and inserting ``paragraph (4)''. (C) Paragraphs (1), (6), and (7)(A)(iii) of section 2031(c) of such Code, as redesignated by subparagraph (A), are each amended by striking ``paragraph (6)'' and inserting ``paragraph (5)''. (c) Date for Determining Value of Land and Easement.--Paragraph (2) of section 2032(c) of such Code (defining applicable percentage) is amended by adding at the end the following new sentence: ``The values taken into account under the preceding sentence shall be such values as of the date of the contribution referred to in paragraph (7)(B).'' (d) Certain Commercial Recreational Uses Permitted.--Subparagraph (B) of section 2031(c)(7) of such Code, as redesignated by subsection (b), is amended to read as follows: ``(B) Qualified conservation easement.-- ``(i) In general.--The term `qualified conservation easement' means a qualified conservation contribution (as defined in section 170(h)(1)) of a qualified real property interest (as defined in section 170(h)(2)(C)), except that clause (iv) of section 170(h)(4)(A) shall not apply, 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. ``(ii) Special rules.--For purposes of this paragraph-- ``(I) Retained rights.--Rights retained in the conservation easement to lease the land for hunting and fishing, so long as such leases are not inconsistent with the conservation purpose of the easement, shall be deemed to be de minimis use. ``(II) Pre-effective date easements.--Easements otherwise qualifying under the provisions of this subsection that were donated on or before the date of the enactment of this subclause, shall be deemed to allow no more than de minimis use for a commercial recreational activity unless by their terms they expressly provide for commercial recreational activity in excess of that otherwise allowed by this subparagraph. ``(III) Authority to extinguish right of commercial recreation activity.--For purposes of this section, if the executor of an estate and every person in being who has an interest in the land execute an agreement to amend or extinguish any right under the easement of commercial recreation activity in the land so as to ensure that such land is used for no more than de minimis commercial recreational activity, such agreement shall be treated as in effect as of the date of the election described in paragraph (5).'' (e) Effective Date.--The amendments made by this section shall apply to estates of decedents dying after the date of the enactment of this Act.
summary: Amends the Internal Revenue Code to exclude contributions of any qualified conservation contribution or capital gain real property made for conservation purposes from the application of the special limitation on contributions of capital gain property and from the application of the five-year carryover limitation. Repeals specified property location restrictions on the estate tax exclusion for property subject to a qualified conservation easement.