H.R. 10813
Historic Preservation and Land Conservation Certainty Act
Sponsor: Mike Carey
In plain English: what this bill does
This bill has two main parts. The first lets partnerships that claimed charitable deductions for donating conservation easements (agreements that protect land) from 2025 and earlier settle their open tax disputes with the IRS by paying a set amount. The second changes the definition of a "contributing building" in two tax rules about historic districts, so that a building counts if the National Register listing identifies it as contributing, or if the Secretary of the Interior certifies it as contributing to the district's historic significance.
Who this affects
- Partnerships with open conservation easement donations: they could choose to resolve those cases by filing an election and paying a settlement amount within 360 days after the law is enacted.
- Partners in those partnerships, including non-contributing partners: a partner who does not pay their share could be assessed the amount plus 25 percent of the tax component.
- The IRS (the Secretary of the Treasury): it would accept elections, compute and verify settlement amounts, and assess amounts owed by non-contributing partners.
- Owners of buildings in historic districts: a building would qualify as "contributing" under the tax rules if it is identified that way in the district's National Register nomination or related documents, or if the Secretary of the Interior certifies it.
Words to know
- Conservation easement: a legal agreement that permanently limits how a piece of land can be developed, often to protect its natural or historic value.
- Partnership: a business owned by two or more partners, which passes its income and deductions through to them.
- Settlement limitation amount: the largest deduction the election would allow, equal to 2.5 times (or 3.2 times, for certain excepted contributions) the capital the partners put in.
- Contributing building: a building that adds to the historic character of a historic district, as recognized in official records.
- Closing agreement: a binding written agreement between a taxpayer and the IRS that settles tax matters.
For example
Made-up numbers: A partnership claimed a $1,000,000 deduction for a conservation easement, and its partners contributed $200,000 of capital. Its settlement limitation amount is 2.5 × $200,000 = $500,000. The excess deduction is $1,000,000 − $500,000 = $500,000. The bill then sets the tax component as that excess times the highest individual tax rate, and adds a penalty component based on the bill's penalty rates, to reach the total settlement amount the partnership must pay to make the election.
Written by AI from the bill's text below; it can be wrong. How it's written
Official summary
No official summary yet.
Text of the bill
(a) Amendment to section 170(h)(4)(c). Section 170(h)(4)(C) is amended—
(1) in clause (ii), by striking and is certified by the Secretary of the Interior to the Secretary as being of historic significance to the district and inserting and is a contributing building; and
(2) by inserting after clause (ii) the following flush language: For purposes of clause (ii), the term contributing building means any building that—
(I) is identified as contributing in the National Register nomination for the district, any amendment thereto, or the official map, inventory, or other district documentation on file with, or approved or accepted by, the Secretary of the Interior, or
(II) is certified by the Secretary of the Interior to the Secretary as contributing to the historic significance of the district.
(b) Conforming amendment to section 47(c)(3)(a). Section 47(c)(3)(A) is amended—
(1) in clause (ii), by striking and is certified by the Secretary of the Interior to the Secretary as being of historic significance to the district and inserting and is a contributing building; and
(2) by inserting after clause (ii) the following flush language: For purposes of this paragraph, the term contributing building means any building that—
(I) is identified as contributing in the National Register nomination for the district, any amendment thereto, or the official map, inventory, or other district documentation on file with, or approved or accepted by, the Secretary of the Interior, or
(II) is certified by the Secretary of the Interior to the Secretary as contributing to the historic significance of the district.
(c) Conforming amendment to section 47(c)(3)(b)(ii)(i). Section 47(c)(3)(B)(ii)(I) is amended by striking buildings of historic significance to the district and inserting contributing buildings in the district.
(d) Effective dates
(1) Section 170 amendment. The amendments made by subsection (a) shall apply to contributions made in taxable years ending before, on, or after the date of enactment, but only with respect to—
(A) any taxable year for which the period for assessment under section 6501 has not expired as of such date;
(B) any taxable year for which a claim for credit or refund may be filed under section 6511 as of such date;
(C) any taxable year to which a deduction attributable to such contribution is carried under section 170(d) and for which the period described in subparagraph (A) or (B) remains open; or
(D) any administrative or judicial proceeding with respect to such contribution that is pending and not final as of such date.
(2) Section 47 conforming amendments. The amendments made by subsections (b) and (c) shall apply to taxable years beginning after the date of enactment.
(3) No inference. No inference shall be drawn with respect to any taxable year or proceeding closed by operation of law.