article: SECTION 1. EXCLUSION FROM ESTATE TAX FOR HISTORIC PROPERTY SUBJECT TO PRESERVATION EASEMENT. (a) In General.--Part IV of subchapter A of chapter 11 of the Internal Revenue of 1986 (relating to taxable estate) is amended by adding at the end the following new section: ``SEC. 2057. QUALIFIED HISTORIC PROPERTY. ``(a) General Rule.--For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate an amount equal to the value of any qualified historic property included in the gross estate. ``(b) Definitions.--For purposes of this section-- ``(1) Qualified historic property.-- ``(A) In general.--The term `qualified historic property' means any historic property if-- ``(i) on or before the date on which the return of the tax imposed by section 2001 is filed, a qualified real property interest described in section 170(h)(2)(C) in such property is held by a qualified organization for the purpose described in section 170(h)(4)(A)(iv), and ``(ii) such property is covered by an agreement meeting the requirements of subsection (c) which is entered into on or before such date. ``(B) Treatment of personal property.--Such term includes personal property included within, or associated with, qualified historic property (as defined in paragraph (1)) if such personal property-- ``(i) is held by the decedent holding such qualified historic property, ``(ii) has been so included within, or associated with, such qualified historic property throughout the 10-year period ending on the date of the decedent's death, and ``(iii) is covered by the agreement referred to in subparagraph (A)(ii) which covers such qualified historic property. ``(2) Historic property.--The term `historic property' means-- ``(A) any building (and its structural components)-- ``(i) which is designated as a National Historic Landmark under section 101 of the National Historic Preservation Act throughout the 10-year period ending on the date of the decedent's death, ``(ii) which was owned by the decedent or a member of the decedent's family (as defined in section 2032A(e)(2)) throughout such 10-year period, and ``(iii) which was originally used for residential purposes, and ``(B) any other real property to the extent reasonably necessary for public view and visitation of the property described in subparagraph (A). ``(3) Qualified organization.--The term `qualified organization' has the meaning given to such term by section 170(h)(3). ``(4) Treatment of qualified historic property held by a corporation.--In the case of a corporation all of the stock in which was held on the date of the decedent's death by the decedent or members of the decedent's family (as defined in section 2032A(e)(2))-- ``(A) stock in such corporation shall be treated for purposes of this section as qualified historic property to the extent that the value of such stock is attributable to qualified historic property held by such corporation, but ``(B) the requirements of subsection (c) shall be met only if each member of the decedent's family holding such stock on such date sign the agreement referred to in subsection (c). ``(c) Requirements for Agreement.-- ``(1) In general.--For purposes of subsection (b)(1)(A)(ii), an agreement meets the requirements of this subsection if-- ``(A) such agreement is a written agreement signed by each person in being who has an interest (whether or not in possession) in the historic property (other than the qualified organization), ``(B) such agreement is entered into with a State historic preservation agency (or similar State agency) and filed with the Secretary with the return of the tax imposed by section 2001, ``(C) such agreement provides that the only activities carried on at the historic property are activities which are substantially related (aside from the need for income or funds or the use made of the profits derived) to-- ``(i) the public view and visitation of such property and the property described in the last sentence of subsection (b)(1) with respect to such property), and ``(ii) the maintenance and preservation of such property and surrounding areas for such public view and visitation, ``(D) such agreement provides that the historic property will be open to the public for a period of at least 20 years beginning on the date on which the return of the tax imposed by section 2001 is filed, and ``(E) such agreement provides that any admission fees (if any) shall bear a reasonable relationship to admission fees for other comparable tourist sites and shall be approved by such State historic preservation agency (or similar State agency). ``(2) Treatment of food, lodging, and meeting facilities provided to general public.--The regular carrying on-- ``(A) a trade or business of providing lodging shall be treated as not substantially related for purposes of paragraph (1)(C), ``(B) a trade or business of providing food shall be treated as not substantially related for purposes of paragraph (1)(C) unless-- ``(i) such food is only provided to individuals who pay the generally applicable admission fees (if any) for admission to the property by individuals to whom no food is provided, and ``(ii) only an insubstantial portion of the structures on the historic property is devoted to the provision of such food, and ``(C) a trade or business of providing facilities for meetings or events shall be treated as not substantially related for purposes of paragraph (1)(C) unless all of the net proceeds from such trade or business are used for maintenance or preservation of the historic property. ``(3) Open to the public.--For the purposes of paragraph (1)(D), the 20-year period referred to in such paragraph shall be suspended during reasonable periods of renovation. ``(d) Tax Treatment of Dispositions and Failure To Comply With Agreement.-- ``(1) Imposition of additional estate tax.--If, during the 20-year period referred to in subsection (c)(1)(D)-- ``(A) any person signing the written agreement referred to in subsection (c) disposes of any interest in the qualified historic property, or ``(B) there is a violation of any provision of such agreement (as determined under regulations prescribed by the Secretary), then there is hereby imposed an additional estate tax. ``(2) Exception for certain transferees who agree to be bound by agreement.--No tax shall be imposed under paragraph (1) by reason of any disposition if the person acquiring the property-- ``(A) is a qualified organization or is a member of the family (as defined in section 2032A(e)(2)) of the person disposing of such property, and ``(B) agrees to be bound by the agreement referred to in subsection (b)(4) and to be liable for any tax under this subsection in the same manner as the person disposing of such property. ``(3) Amount of additional tax.-- ``(A) In general.--The amount of the additional tax imposed by paragraph (1) with respect to any property shall be an amount equal to the applicable percentage of the excess of-- ``(i) what would (but for subsection (a)) have been the tax imposed by section 2001 (reduced by the credits allowable), over ``(ii) the tax imposed by section 2001 (as so reduced). ``(B) Applicable percentage.--For purposes of subparagraph (A), the applicable percentage is the percentage determined in accordance with the following table for the year (of 20-year period referred to in subsection (c)(1)(D)) in which the event described in paragraph (1) occurs: ``If the event The applicable occurs during: percentage is: The 1st 12 years of such 20-year 100 percent period. The 13th or 14th year of such period. 80 percent The 15th or 16th year of such period. 60 percent The 17th or 18th year of such period. 40 percent The 19th or 20th year of such period. 20 percent. ``(4) Due date.--The additional tax imposed by this subsection shall be due and payable on the day which is 6 months after the date of the disposition or violation referred to in paragraph (1). ``(5) Liability for tax.--Any person signing the agreement referred to in subsection (c) (other than the executor) shall be personally liable for the additional tax imposed by this subsection. If more than 1 person is liable under this subsection, all such persons shall be jointly and severally liable. ``(6) Certain other rules to apply.--Rules similar to the rules of sections 1016(c), 2013(f), and 2032A(f) shall apply for purposes of this subsection. ``(e) Other Special Rules.-- ``(1) Coordination with deduction for transfer of easement.--Section 2055(f) shall not apply to any interest referred to therein with respect to property for which a deduction is allowed under subsection (a). ``(2) Denial of deduction of indebtedness on excluded property.--No deduction shall be allowed under section 2053 for indebtedness in respect of property the value of which is deducted under subsection (a). ``(3) Submission of annual inventories of personal property.--The Secretary shall require the submission to the Secretary of such inventories of personal property which is qualified historic property as the Secretary determines are necessary for purposes of this section.'' (b) Technical Amendments.-- (1) Subsection (a) of section 1014 of such Code is amended by striking the period at the end of paragraph (3) and inserting ``, or'' and by adding after paragraph (3) the following new paragraph: ``(4) in the case of property the value of which was deducted under section 2057(a), the adjusted basis of such property in the hands of the decedent immediately before the death of the decedent.'' (2) Subparagraph (A) of section 2056A(b)(10) of such Code is amended by inserting ``2057,'' after ``2056,''. (3) The table of sections for part IV of subchapter A of chapter 11 of such Code is amended by adding at the end the following new item: ``Sec. 2057. Qualified historic property.'' (c) Effective Date.--The amendments made by this section shall apply with respect to the estates of decedents dying after the date of the enactment of this Act.
summary: Amends the Internal Revenue Code to provide that for purposes of determining estate tax the value of the taxable estate shall be determined by deducting from the value of the gross estate an amount equal to the value of any qualified historic property. Defines qualified historic property. Requires, among other things, that the historic property will be open to the public for a period of at least 20 years and will have reasonable admission fees.