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119-hr-10813119th CongressWALLET

Historic Preservation and Land Conservation Certainty Act

Sponsored By: Representative Carey, Mike [R-OH-15]

Introduced

Summary

This bill would create an optional, binding election that lets partnerships resolve open controversies over qualified conservation contributions (conservation easements) for tax years ending on or before December 31, 2025. The election packages a formula-based settlement and narrow review rules to clear disputes on marketed partnership deals.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 1 costs, 3 mixed.

What happens if partners don’t pay

If enacted, a partnership may reduce its remittance if some partners fail to pay their allocable shares. The Secretary would immediately assess each non-paying partner for that partner’s allocable share plus an extra amount equal to 25% of the tax component times their share fraction. Interest would start the day after the election period ends. A non-paying partner would have to pay the assessed amount before challenging its computation by filing a refund claim, and could sue if the refund claim is denied.

How the settlement price is figured

If enacted, the settlement would be a tax component plus a penalty component. The bill would generally cap the deductible amount at 2.5 times capital contributed by ultimate partners. Certain qualifying deals could use a higher cap of 3.2 times contributed capital, but financing from the organizer or manager would be excluded. The tax component would be the excess deduction times the highest individual tax rate for covered years. Penalties would be tiered: no penalty up to 150% of the limit, a section 6662(a) rate between 150% and 200%, and a section 6662(h) rate above 200%. Interest would accrue under section 6601 but interest through the first 90 days after enactment could be waived for timely remittances.

New rule for historic-district buildings

The bill would replace the old historic-certification test with a “contributing building” test for certain conservation deductions. A building would qualify if it is listed as contributing in the National Register nomination or official district documents, or if the Secretary of the Interior certifies it as contributing. That change would apply only to contributions with open tax assessments, open refund claims, carried deductions, or pending proceedings as of enactment. Related tax code updates would apply to taxable years beginning after enactment.

Optional partnership settlement process

This bill would create an optional, binding settlement for partnerships that claimed conservation easement deductions. Partnerships would have one 360-day window after enactment to file the election. Eligible deductions must be shown on partnership returns for tax years ending on or before December 31, 2025. An effective election would be treated as a closing agreement and would bind the partnership and its partners, generally waiving further challenges except for limited computational questions. Related partnerships marketed together could join as a single group and act through a designated partnership with written authorizations.

Sponsors & CoSponsors

Sponsor

Carey, Mike [R-OH-15]

OH • R

Cosponsors

  • Rep. Carter, Earl L. "Buddy" [R-GA-1]

    GA • R

    Sponsored 10/15/2026

  • Rep. Moore, Tim [R-NC-14]

    NC • R

    Sponsored 10/15/2026

  • Rep. Fleischmann, Charles J. "Chuck" [R-TN-3]

    TN • R

    Sponsored 10/15/2026

  • Rep. Bean, Aaron [R-FL-4]

    FL • R

    Sponsored 10/15/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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