Historic Preservation and Land Conservation Certainty Act
Sponsored By: Representative Carey, Mike [R-OH-15]
Introduced
Summary
This bill would create a voluntary settlement process for disputed partnership conservation-easement deductions and update the test for historic buildings in tax law. It offers a short, computation-focused path to resolve partnership disputes about claimed conservation contributions and replaces the Interior Department certification test with a defined "contributing-building" standard for historic-district properties.
Show full summary
- Partnerships and groups that claimed partnership conservation easement deductions would be able to file a single election within a 180-day window to settle open disputes. The settlement limit is generally 2.5 times partners' relevant basis or 3.2 times aggregate capital in specified cases, and a single remittance resolves the excess deduction for included partners if the election is effective.
- Partners face new joint and several payment rules for common marketing groups and special rules for non-contributing partners. Non-contributing partners can be assessed their allocable share plus an extra 25 percent of a tax-related component, with prompt assessment and a 90-day window for administrative or Tax Court review of computational disputes.
- Owners and developers of historic-district buildings would use a clear "contributing-building" test instead of a standalone Secretary of the Interior certification. That standard is adopted for certain deductions and related tax credits, with conforming changes applied to post-enactment tax years and defined coverage for ongoing proceedings.
- The IRS's review of any election would be limited to computational elements only and the Secretary generally has two years to notify partnerships of any computation errors. Administrative review by appeals and a 90-day judicial window are provided for disputes about corrected amounts.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
More buildings qualify for historic tax breaks
The bill would replace the old Secretary certification phrase with a new "contributing building" test for certain conservation deductions and the rehabilitation tax credit. A contributing building would include any building listed as contributing in the National Register nomination or official district files, or one certified by the Secretary of the Interior. The change would apply to the rehabilitation credit for taxable years beginning after enactment, and would apply to certain conservation-deduction matters for years ending before, on, or after enactment only when assessment or refund periods remain open or a proceeding is pending. If enacted, more buildings in historic districts could meet the tax rules that allow deductions or credits.
New settlement for partnership easements
This bill would create an optional settlement process for partnerships that claimed conservation easement deductions for years ending on or before Dec. 31, 2024. A partnership could elect within 180 days of enactment, file a statement, and pay a settlement made of a tax part plus a penalty part. The tax part equals the excess deduction over a limit (generally 2.5× partners' relevant basis, or 3.2× certain contributed capital in specific cases) times the highest individual rate in the covered years; penalties follow section 6662 rules and can be higher if the claim is extreme. The election would be a binding closing agreement, require payment by the last day of the 180-day window to avoid interest on that portion, allow aggregation for common marketing groups, and expose partners to joint-and-several and special immediate assessments (including a 25% extra component for non-contributing partners).
Sponsors & CoSponsors
Sponsor
Carey, Mike [R-OH-15]
OH • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov