1. Short title
This Act may be cited as the “Capital Gains Easement Act of 2013”.
Capital Gains Easement Act of 2013
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income gain from the sale or grant of conservation easements and to allow the sale or grant of conservation easements in the case of the special estate tax valuation provisions for certain farm and other trade or business real property.
2. Exclusion of gain from sale or grant for real property conservation purposes
In general— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section:
“139E. Gain from sale or grant for conservation purposes
“(a) In general—Gross income shall not include any gain from the sale or grant of a qualified real property interest to a qualified organization exclusively for conservation purposes.
“(b) Definitions—For purposes of this section—
“(1) Qualified real property interest
“(A) In general—The term qualified real property interest means any of the following interests in real property:
“(i) The entire interest of the taxpayer.
“(ii) A remainder interest.
“(iii) A restriction (granted in perpetuity) on the use which may be made of the real property.
“(B) Special rule for mineral interests—An interest in real property shall not fail to be treated as a qualified real property interest solely by reason of a retention of a qualified mineral interest.
“(2) Qualified organization; conservation purposes—The terms qualified organization and conservation purpose shall have the respective meanings given such terms by section 170(h).”
Clerical amendment— The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item relating to section 140 the following new item:
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
3. Sale of conservation easement not a disposition for purposes of special estate tax real estate valuation rules
In general— Paragraph (8) of section 2032A(c) of the Internal Revenue Code of 1986 is amended by inserting “or a sale or grant to which section 139E applies” after “by gift or otherwise”.
Effective date— The amendment made by this section shall apply to sales or grants after the date of the enactment of this Act.