text: 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.
target: 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.
feat_title: To amend the Internal Revenue Code of 1986 to encourage contributions by individuals of capital gain real property for conservation purposes, to encourage qualified conservation contributions, and to modify the rules governing the estate tax exclusion for land subject to a qualified conservation easement.