Text: S.1365 — 104th Congress (1995-1996)All Information (Except Text)

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Introduced in Senate (10/26/1995)

 
[Congressional Bills 104th Congress]
[From the U.S. Government Printing Office]
[S. 1365 Introduced in Senate (IS)]

  1st Session
                                S. 1365

    To provide Federal tax incentives to owners of environmentally 
sensitive lands to enter into conservation easements for the protection 
         of endangered species habitat, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 26, 1995

Mr. Kempthorne (for himself, Mr. Warner, Mr. Faircloth, Mr. Inhofe, Mr. 
   Thomas, Mr. McConnell, Mr. Craig, Mr. Bennett, Mr. Burns, and Mr. 
   Cochran) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To provide Federal tax incentives to owners of environmentally 
sensitive lands to enter into conservation easements for the protection 
         of endangered species habitat, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Endangered Species Habitat 
Protection Act of 1995''.

SEC. 2. FINDINGS.

    The Senate finds and declares the following:
            (1) The majority of American property owners recognize the 
        importance of protecting the environment.
            (2) Current Federal tax laws discourage placement of 
        privately held lands into endangered species conservation 
        agreements.
            (3) The Federal Government should assist landowners in the 
        goal of conserving endangered species and their habitat.
            (4) If the environment is to be protected and preserved, 
        existing Federal tax laws must be modified or changed to 
        provide tax incentives to landowners to attain such a goal.

SEC. 3. NONREFUNDABLE CREDIT FOR THE AGREEMENT TO MANAGE LAND TO 
              PRESERVE ENDANGERED SPECIES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 22 the 
following new section:

``SEC. 23. CREDIT FOR AGREEMENT TO MANAGE LAND TO PRESERVE ENDANGERED 
              SPECIES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the lesser of--
            ``(1) the applicable acreage rate of the qualified acreage, 
        or
            ``(2) $50,000.
    ``(b) Applicable Acreage Rate.--For purposes of subsection (a), the 
applicable acreage rate is the rate established by the Secretary of the 
Interior for the taxable year utilizing rates comparable to rental 
payments under the conservation reserve program under section 1234 of 
the Food Security Act of 1985 (16 U.S.C. 3834).
    ``(c) Qualified Acreage.--For purposes of this section, the term 
`qualified acreage' means any acreage--
            ``(1) which is subject to an endangered species 
        conservation agreement under the Endangered Species Act (16 
        U.S.C. 1531 et seq.) and accepted into the expanded 
        conservation reserve program pursuant to section 1231(d)(2) of 
        the Food Security Act of 1985 (16 U.S.C. 3831(d)(2)),
            ``(2) which is owned by one or more individuals directly or 
        indirectly through a partnership or S corporation that is held 
        entirely by individuals, and
            ``(3) subject to a perpetual restriction that is valued 
        pursuant to section 170(h)(7).
    ``(d) Credit Recapture.--If, during the period of the endangered 
species conservation agreement, the taxpayer transfers the qualified 
acreage without also transferring the taxpayer's obligations under the 
expanded conservation reserve program under subchapter B of chapter 1 
of subtitle D of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) 
and the endangered species conservation agreement, then the taxpayer's 
tax under this chapter for the taxable year shall be increased by the 
amount of the credit received under this section during all prior years 
by such taxpayer, plus interest at the overpayment rate established 
under section 6621 on such amount for each prior taxable year for the 
period beginning on the due date for filing the return for the prior 
taxable year involved. No deduction shall be allowed under this chapter 
for interest described in the preceding sentence, and any increase in 
tax under the preceding sentence shall not be treated as a tax imposed 
by this chapter for purposes of determining the amount of any credit 
under subpart A, B, D, or G of this part.
    ``(e) Joint Owners.--For purposes of this section, the amount of 
credit under this section that any joint owner is entitled to 
constitutes the total credit allowable under this section with respect 
to the qualified acreage multiplied by the individual's percentage 
ownership in the qualified acreage. Each joint owner shall include the 
names and taxpayer identification numbers of all other joint owners in 
the property.
    ``(f) Regulatory Authority.--
            ``(1) Treasury department.--The Secretary shall promulgate 
        regulations to ensure that a taxpayer cannot subdivide property 
        to determine such taxpayer's qualified acreage unless all of 
        the acreage such taxpayer owns within a significant region is 
        submitted to the expanded conservation reserve program, whether 
        or not such acreage is eligible for a credit under this 
        section.
            ``(2) Secretary of the interior.--As necessary, the 
        Secretary of the Interior shall determine the applicable 
        acreage rate for regions within the United States based on 
        rates comparable to those under the expanded conservation 
        reserve program. Once a rate is prescribed under an endangered 
        species conservation agreement, however, such rate shall remain 
        in effect for the duration of that agreement.''
    (b) Conforming Amendments.--Subchapter B of chapter 1 of subtitle D 
of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) is amended--
            (1) in section 1231(b)--
                    (A) by striking the period at the end and inserting 
                ``; or''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(5) lands with respect to which the owner or operator and 
        the Secretary of the Interior or the Secretary of Commerce have 
        entered into an endangered species conservation agreement.'';
            (2) in section 1231(d), by striking ``(d)'' and inserting 
        ``(d)(1)'' and by adding at the end the following new 
        paragraph:
    ``(2) The Secretary of the Interior and the Secretary of Commerce 
shall enter into endangered species conservation agreements under this 
section to enroll acreage, in addition to the 38,000,000 acres 
authorized by paragraph (1), into the expanded conservation reserve, 
for which no payment is due under section 3834, totaling 5,000,000 
acres during calendar years 1996 through 2001. In enrolling such acres, 
the Secretary of the Interior and the Secretary of Commerce shall 
reserve 1,000,000 acres for enrollment under this section in calendar 
year 1996.'';
            (3) in section 1232, by adding at the end the following new 
        subsection:
    ``(f) This section shall not apply to owners and operators subject 
to endangered species conservation agreements.'';
            (4) in section 1234, by adding at the end the following new 
        subsection:
    ``(i) This section shall not apply to owners and operators subject 
to endangered species conservation agreements.''; and
            (5) by inserting after section 1234 the following new 
        section:

``SEC. 1234A. NO PAYMENTS TO PROPERTIES FOR WHICH AN INCOME TAX CREDIT 
              OR DEDUCTION IS TAKEN.

    ``The Secretary shall insure that no payment be made under this 
subchapter to any owner if that owner has indicated an intention to 
claim an income tax credit (under section 23 of the Internal Revenue 
Code of 1986) for participation in this program, or an income tax 
deduction (under section 170(h)(4)(A)(iii) of such Code).''
    (c) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 22 the 
following new item:

                              ``Sec. 23. Credit for agreement to manage 
                                        land to preserve endangered 
                                        species.''
    (d) Effective Dates.--
            (1) Credit.--The amendments made by subsections (a) and (c) 
        shall apply to taxable years beginning after December 31, 1995.
            (2) Conforming amendments.--The amendments made by 
        subsection (b) shall take effect on January 1, 1996.

SEC. 4. ENHANCED DEDUCTION FOR THE DONATION OF A CONSERVATION EASEMENT.

    (a) In General.--Subparagraph (A) of section 170(h)(4) of the 
Internal Revenue Code of 1986 (defining conservation purpose) is 
amended by striking ``or'' at the end of clause (iii), by striking the 
period at the end of clause (iv) and inserting ``, or'', and by adding 
at the end the following new clause:
                            ``(v) the protection of a species 
                        designated endangered by the Secretary of the 
                        Interior or the Secretary of Commerce.''
    (b) Enhanced Valuation.--Section 170(h) of the Internal Revenue 
Code of 1986 (defining qualified conservation contribution) is amended 
by adding at the end the following new paragraph:
            ``(7) Enhanced valuation of property with endangered 
        species.--For purposes of this section, the valuation of a 
        perpetual restriction granted to the Secretary of the Interior 
        or the Secretary of Commerce or to a State agency implementing 
        an endangered species program for the purpose described in 
        paragraph (4)(A)(iii) shall be made by comparing the value of 
        the property after the restriction is granted with the value of 
        that same property without either the encumbrance of such 
        restriction or any of the restrictions placed on such property 
        by the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).''
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after the date of the enactment of this 
Act.

SEC. 5. ADDITIONAL DEDUCTION FOR CERTAIN STATE AND LOCAL REAL PROPERTY 
              TAXES IMPOSED WITH RESPECT TO PROPERTY SUBJECT TO AN 
              ENDANGERED SPECIES CONSERVATION AGREEMENT.

    (a) In General.--Section 164 of the Internal Revenue Code of 1986 
(relating to deductions for taxes) is amended by redesignating 
subsection (g) as subsection (h) and by inserting after subsection (f) 
the following new subsection:
    ``(g) Additional Deduction for Certain State and Local Real 
Property Taxes Imposed With Respect to Property Subject to an 
Endangered Species Conservation Agreement.--
            ``(1) General rule.--Except as provided in paragraph (3), 
        in the case of property--
                    ``(A) which, on the last day of the taxable year, 
                is described in section 23(c)(1), and
                    ``(B) with respect to which no recapture event 
                described in section 23(d) has occurred,
        a deduction in the amount determined under paragraph (2) shall 
        be allowed for all State and local real property taxes paid or 
        accrued with respect to such property during such year. The 
        deduction allowed by this subsection shall be in addition to 
        any other deduction allowed by this section.
            ``(2) Amount of additional deduction.--The deduction 
        allowed by this subsection shall equal 25 percent of the amount 
        of State and local real property taxes that are otherwise 
        deductible under this section without regard to this 
        subsection.
            ``(3) Deduction not allowed.--No deduction shall be allowed 
        under this subsection for taxes imposed upon real property--
                    ``(A) with respect to which a credit under section 
                23 is allowable, or
                    ``(B) subject to a perpetual restriction that is 
                valued pursuant to section 170(h)(7).''
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 6. COOPERATION WITH NON-FEDERAL PERSONS.

    (a) In General.--Section 6 of the Endangered Species Act of 1973 
(16 U.S.C. 1535) is amended--
            (1) by striking the section heading and subsections (a) and 
        (b) and inserting the following:

                 ``cooperation with non-federal persons

    ``Sec. 6. (a) In General.--In carrying out this Act, the Secretary 
shall cooperate to the maximum extent practicable with the States, 
tribes, and other non-Federal persons. The cooperation shall include 
consultation with the appropriate States, tribes, and other non-Federal 
persons before acquiring any land or water, or interest in land or 
water, for the purpose of conserving any endangered species or 
threatened species.
    ``(b) Cooperative Management Agreements.--
            ``(1) In general.--The Secretary may enter into a 
        cooperative management agreement with any State or group of 
        States, political subdivision of a State, tribe, local 
        government, or other non-Federal person for the management of a 
        species or group of species listed as endangered species or 
        threatened species under section 4(c)(1), a species or group of 
        species proposed to be listed under section 4(c)(1), or a 
        candidate species or group of candidate species.
            ``(2) Scope of cooperative management agreements.--
                    ``(A) In general.--A cooperative management 
                agreement may provide for the management of a species 
                or group of species on both public and private lands 
                that are under the authority, control, or ownership of 
                a State or group of States, tribe, political 
                subdivision of a State, local government, or other non-
                Federal person and that are affected by a listing 
                determination, proposed determination, or proposed 
                candidacy for determination.
                    ``(B) Activities on private property.--A 
                cooperative management agreement may not restrict 
                activity on private property unless the individual 
                property owner gives written consent to the restriction 
                to the Secretary or the State, tribe, political 
                subdivision, local government, or other non-Federal 
                person that is a party to the agreement.
                    ``(C) Activities on federally owned lands.--The 
                Secretary may grant to the non-Federal party to the 
                agreement the authority to undertake programs to 
                enhance the population or habitat of a species on 
                federally owned lands, except that the authority shall 
                not conflict with other uses of the land that are 
                approved by the Secretary or authorized by Congress.
            ``(3) Notification.--Not later than 30 days after 
        submission of a request to enter into a cooperative management 
        agreement, the party submitting the request shall provide 
        notice of the request to any non-Federal person or Federal 
        power marketing administration that would be subject to the 
        proposed cooperative management agreement.
            ``(4) Development of proposed agreement.--
                    ``(A) In general.--The requesting party shall 
                develop and submit to the Secretary a proposed 
                cooperative management agreement.
                    ``(B) Notice and comment.--The Secretary shall--
                            ``(i) publish in the Federal Register a 
                        notice of availability and a request for public 
                        comment on any proposed cooperative management 
                        agreement between the Secretary and any 
                        governmental entity; and
                            ``(ii) hold a public hearing on such a 
                        proposed cooperative management agreement in 
                        each county in which the proposed agreement 
                        would be in effect.
                    ``(C) Consideration of comments.--Before entering 
                into a cooperative management agreement with a 
                governmental entity, the Secretary shall consider and 
                weigh carefully all information received in response to 
                the request for comment published under subparagraph 
                (B)(i) and the testimony presented in each hearing held 
                under subparagraph (B)(ii).
            ``(5) Approval of agreement.--
                    ``(A) In general.--Not later than 120 days after 
                the submission of a proposed cooperative management 
                agreement under paragraph (4), the Secretary shall 
                determine whether the proposed agreement is in 
                accordance with this subsection and will promote the 
                conservation of the species to which the proposed 
                agreement applies.
                    ``(B) Criteria for approval.--The Secretary shall 
                approve and enter into a proposed cooperative 
                management agreement if the Secretary determines that--
                            ``(i) the requesting party has sufficient 
                        authority under law to implement and carry out 
                        the terms of the agreement;
                            ``(ii) the agreement identifies an area 
                        that serves as habitat for the species or group 
                        of species to which the agreement applies;
                            ``(iii) the agreement adequately provides 
                        for the administration and management of the 
                        identified area;
                            ``(iv) the agreement promotes the 
                        conservation of the species to which the 
                        agreement applies by committing Federal or non-
                        Federal efforts to the conservation;
                            ``(v) the term of the agreement is of 
                        sufficient duration to accomplish the 
                        agreement; and
                            ``(vi) the agreement is adequately funded 
                        to carry out the agreement.
                    ``(C) Notice of availability of terms.--Not later 
                than 30 days after entering into a cooperative 
                management agreement with a governmental entity, the 
                Secretary shall publish in the Federal Register a 
                notice of availability of the terms of the agreement 
                and the response of the Secretary to all information 
                received or presented with respect to the agreement 
                under paragraph (4)(B).
            ``(6) Volunteer status.--The Secretary may designate any 
        non-Federal person participating or assisting in the 
        implementation of a cooperative management agreement as a 
        volunteer under section 7(c) of the Fish and Wildlife Act of 
        1956 (16 U.S.C. 742f(c)).
            ``(7) Technical assistance.--The Secretary shall provide 
        technical assistance for the development and implementation of 
        a cooperative management agreement with a non-Federal person.
            ``(8) Environmental assessments.--The preparation, 
        approval, and entering into of a cooperative management 
        agreement shall not be subject to section 102(2) of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)).
            ``(9) No additional measures.--With respect to any species 
        or area that is the subject of a cooperative management 
        agreement, a party to the agreement shall not be required--
                    ``(A) to make any additional payment for any 
                purpose, or to accept any additional restriction on any 
                parcel of land available for development or land 
                management under the agreement, without the consent of 
                the party; or
                    ``(B) to undertake any other measure to minimize or 
                mitigate impacts on the species in addition to measures 
                required by the agreement.
            ``(10) Effect of listing of species.--A cooperative 
        management agreement shall remain in effect and shall not be 
        required to be amended if a species to which the agreement does 
        not apply is determined to be an endangered species or a 
        threatened species under section 4.
            ``(11) Applicability of certain provisions.--Sections 5, 7, 
        and 9 shall not apply to such activities of a party to a 
        cooperative management agreement as are conducted in accordance 
        with the agreement.
            ``(12) Violations of agreements.--
                    ``(A) Notification.--If the Secretary determines 
                that a party to a cooperative management agreement is 
                not administering or acting in accordance with the 
                agreement, the Secretary shall notify the party.
                    ``(B) Effects of violations.--If a party that is 
                notified under subparagraph (A) fails to take 
                appropriate corrective action within a period of time 
                determined by the Secretary to be reasonable (not to 
                exceed 90 days after the date of notification)--
                            ``(i) the Secretary shall rescind the 
                        entire cooperative management agreement or the 
                        applicability of the agreement to the party 
                        that is the subject of the notification; and
                            ``(ii) beginning on the date of 
                        rescission--
                                    ``(I) the entire agreement shall 
                                not be effective, or the agreement 
                                shall not be effective with respect to 
                                the party, whichever is appropriate; 
                                and
                                    ``(II) sections 5, 7, and 9 shall 
                                apply to activities of the party.'', 
                                and
            (2) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively, and
            (3) by inserting after subsection (g) the following new 
        subsection:
    ``(h) Habitat Conservation Grants.--
            ``(1) In general.--The Secretary may, from funds 
        appropriated under section 15(a), provide a grant to a non-
        Federal person (other than an officer, employee, or agent 
        (acting in an official capacity) or a department or 
        instrumentality of a State, municipality, tribe, or political 
        subdivision of a State, municipality, or tribe) for the purpose 
        of conserving, preserving, or improving habitat for any species 
        that is determined under section 4 to be an endangered species 
        or a threatened species.
            ``(B) Criteria.--The Secretary may provide a grant under 
        this subsection if the Secretary determines that--
                    ``(A) the property for which the grant is provided 
                contains habitat that significantly contributes to the 
                protection of the population of the species;
                    ``(B) the property will be managed for species 
                protection for a period of time that is sufficient to 
                significantly contribute to the protection of the 
                population of the species; and
                    ``(C) the management of the habitat advances the 
                interest of species protection.
            ``(3) Transferability.--A grant made under this subsection 
        shall be transferable to subsequent owners of the property for 
        which the grant is provided.''
    (b) Conforming Amendment.--The table of contents in the first 
section of the Endangered Species Act of 1973 (16 U.S.C. prec. 1531) is 
amended by striking the item relating to section 6 and inserting the 
following new item:

``Sec. 6. Cooperation with non-Federal persons.''
                                 <all>
S 1365 IS----2