,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #dg  ,,9 ,,! ,,h\se ,,(             
,,repres5tatives  ,janu>y #c1 #bjac ,mr4
 ,bi%op ( ,new ,york 7= himself & ,mr4  
,hanna7 introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to all[ an unlimit$      
exclusion f transf] taxes = c]ta9 f>ml& 
& l& ( cons]vation value1 & = o!r       
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,f>ml& ,pres]vation & ,l&  
,cons]vation ,act ( #bjac4  #b4 ,transf]
 tax exclusion = c]ta9 f>ml& & l& (     
cons]vation value  7a7 ,e/ate tax  7#a7 
,9 g5]al ,"p ,,iv ( sub*apt] ,a ( *apt] 
#aa ( ! ,int]nal ,rev5ue ,code ( #aihf  
7relat+ to gross e/ate7 is am5d$ by     
ins]t+ aft] section #bjeh ! foll[+ new  
section3  #bjei4 ,f>m & cons]vation l&  
7a7 ,9 g5]al ,= purposes ( ! tax impos$ 
by section #bjja1 ! value ( ! taxable   
e/ate %all be det]m9$ by d$uct+ f !     
value ( ! gross e/ate an am\nt equal to 
! adju/$ value ( ! qualifi$ f>m or      

cons]vation l& includ$ 9 ! e/ate4  7b7  
,e/ates to :i* section applies ,?is     
section %all apply to an e/ate if--     
7#a7 ! dec$5t 0 7at ! date ( ! dec$5t's 
dea?7 a citiz5 or resid5t ( ! ,unit$    
,/ates1 &  7#b7 ! executor elects !     
application ( ?is section & files !     
agreem5t ref]r$ to 9 subsection 7d77#b7 
) respect to ! qualifi$ f>m or          
cons]vation l&4  7c7 ,def9itions ,=     
purposes ( ?is section--  7#a7 ,qualifi$
 f>m or cons]vation l& ,! t]m qualifi$  
f>m or cons]vation l& means any real    
prop]ty--  7,a7 :i* is locat$ 9 ! ,unit$
 ,/ates1  7,b7 :i*1 on ! date ( !       
dec$5t's dea?1 0 be+ us$--  7i7 z a f>m 
= f>m+ purposes 7)9 ! mean+ ( section   
#bjcb;,a7e771 or  7ii7 exclusively =    
cons]vation purposes 7)9 ! mean+ (      
section #agj7;h771  7,c7 ) respect to   
:i* !re is a record$ cov5ant :i* prev5ts
 any use ( su* l& :i* is inconsi/5t ) ! 
uses describ$ 9 subp>agraph 7,b71 &     
7,d7 :i* is designat$ 9 ! agreem5t      
ref]r$ to 9 subsection 7d77#b74  7#b7   

,adju/$ value ,! t]m adju/$ value means 
! value ( ! qualifi$ f>m or cons]vation 
l& = purposes ( ?is *apt]1 r$uc$ by !   
am\nt all[able z a d$uction "u p>agraph 
7#d7 ( section #bjec7;a74  7d7          
,election2 agreem5t  7#a7 ,election ,!  
election "u ?is section %all be made on 
! return ( ! tax impos$ by section      
#bjja4 ,su* election %all be made 9 su* 
mann] z ! ,secret>y %all by regulations 
prescribe4 ,su* an election1 once made1 
%all be irrevocable4  7#b7 ,agreem5t ,! 
agreem5t ref]r$ to 9 ?is p>agraph is a  
writt5 agreem5t sign$ by ea* p]son 9 be+
 :o has an int]e/ 7:e!r or n 9          
possession7 9 any prop]ty designat$ 9   
su* agreem5t cons5t+ to ! application ( 
subsection 7e7 ) respect to su* prop]ty4
  7#c7 ,modification ( election &       
agreem5t p]mitt$ ,! proc$ures prescrib$ 
"u section #bjcb;,a7d77#c7 %all apply = 
purposes ( ?is subsection4  7e7 ,tax    
treatm5t ( dispositions & inconsi/5t    
uses ,9 ! case ( a dec$5t's e/ate :i*   
includes qualifi$ f>m or cons]vation l& 

) respect to :i* !re is a cov5ant       
describ$ 9 subsection 7c77#a77;,c7      
7includ+ su* a cov5ant made by a prior  
dec$5t7--  7#a7 ,imposition ( additional
 e/ate tax ,if1 at any "t aft] !        
dec$5t's dea? & be=e ! dea? ( ! heir--  
7,a7 ! heir disposes ( any int]e/ 7o!r  
?an by a qualifi$ cons]vation           
contribution 7z def9$ 9 section         
#agj7;h777 9 qualifi$ f>m or cons]vation
 l& & ! p]son acquir+ su* int]e/ is n   
subject to ! cov5ant describ$ 9         
subsection 7c77#a77;,c71 or  7,b7 ! heir
 uses su* l& 9 any mann] :i* violates ! 
t]ms ( su* cov5ant1  !n1 !re is h]eby   
impos$ an additional e/ate tax4  7#b7   
,am\nt ( additional tax  7,a7 ,9 g5]al  
,! am\nt ( ! additional tax impos$ by   
p>agraph 7#a7 ) respect to any int]e/   
%all be ! am\nt equal to ! sum (--  7i7 
! adju/$ tax diff]5ce ) respect to !    
e/ate1 &  7ii7 int]e/ at ! und]paym5t   
rate e/abli%$ "u section #ffba on !     
am\nt det]m9$ "u clause 7i7 = ! p]iod   
beg9n+ on ! due date = fil+ ! e/ate tax 

return4  7,b7 ,adju/$ tax diff]5ce )    
respect to e/ate ,= purposes ( ?is      
subsection1 ! t]m adju/$ tax diff]5ce ) 
respect to ! e/ate means ! excess (--   
7i7 :at w\ld h be5 ! e/ate tax liability
 if ! fair m>ket value ( ! int]e/ at !  
"t ( ! disposition or use describ$ 9    
p>agraph 7#a71 ov]  7ii7 ! e/ate tax    
liability4  ,= purposes ( ?is           
subp>agraph1 ! t]m e/ate tax liability  
means ! tax impos$ by section #bjja     
r$uc$ by ! cr$its all[able aga9/ su*    
tax4  7#c7 ,c]ta9 additional rules to   
apply ,rules simil> to ! rules (        
p>agraphs 7#b77;,d71 7#b77;,e71 7#c71   
7#d71 7#e71 & 7#h7 ( section #bjcb;,a7c7
 %all apply = purposes ( ?is subsection4
  7#d7 ,income tax treatm5t (           
dispositions ,= purposes ( *apt] #a1 9  
any case 9 :i* an additional tax is     
impos$ by ?is subsection by reason ( any
 disposition or use ( an int]e/1 su*    
int]e/ 7if n o!rwise dispos$ ( 9 a      
transaction 9 :i* ga9 is recogniz$7 %all
 be treat$ z sold at its fair m>ket     

value at ! "t ( ! disposition or use1 & 
ga9 %all be recogniz$ not)/&+ any       
provision ( subtitle ,a4  7f7 ,basis ,= 
purposes ( ?is title1 ! basis ( any     
qualifi$ f>m or cons]vation l& :i* is   
includ$ 9 ! e/ate ( a dec$5t pursuant to
 subsection 7a7 %all be ! adju/$ basis (
 su* qualifi$ f>m or cons]vation l& on !
 date ( ! dec$5t's dea?4  7g7 ,c]ta9    
additional rules ,to apply ,= purposes (
 ?is section1 rules simil> to ! foll[+  
rules %all apply3  7#a7 ,c]ta9 real     
prop]ty includ$ ,section                
#bjcb;,a7e77#c74  7#b7 ,def9itions ( f>m
 & f>m+ purposes ,p>agraphs 7#d7 & 7#e7 
( section #bjcb;,a7e74  7#c7 ,prop]ty   
acquir$ f dec$5t ,section               
#bjcb;,a7e77#i74  7#d7 ,community       
prop]ty ,section #bjcb;,a7e77#aj74  7#e7
 ,bond 9 lieu ( p]sonal liability       
,section #bjcb;,a7e77#aa74  7#f7        
,special rule = woodl&s ,section        
#bjcb;,a7e77#ac74  7#g7 ,/atute (       
limitation ,section #bjcb;,a7f74  7#h7  
,special rules = involunt>y conv]sions (

 real prop]ty ,section #bjcb;,a7h74     
7#i7 ,ex*anges ( qualifi$ real prop]ty  
,section #bjcb;,a7i74  7h7 ,cross       
ref]5ce ,see section #fcbd;,c = special 
li5 on f>m & cons]vation l&4  4  7#b7   
,special li5 = f>m & cons]vation l& ,"p 
,,ii ( sub*apt] ,c ( *apt] #fd ( su*    
,code 7relat+ to li5s7 is am5d$ by      
ins]t+ aft] section #fcbd;,b ! foll[+   
new section3  #fcbd;,c4 ,special li5 on 
f>m & cons]vation l&  7a7 ,g5]al rule ,9
 ! case ( qualifi$ f>m or cons]vation l&
 7)9 ! mean+ ( section #bjei7;c77#a77 ) 
respect to :i* an election is 9 effect  
"u section #bjei7;b77#b7 or section     
#bebd7;a7 or pursuant to section        
#bfaa7;b77#b71 an am\nt equal to !      
adju/$ value attributable to su* l& 7)9 
! mean+ ( section #bjei7;c77#b77 %all be
 a li5 9 favor ( ! ,unit$ ,/ates on su* 
l&4  7b7 ,p]iod ( li5 ,! li5 impos$ by  
?is section %all arise at ! "t an       
election is fil$ "u section #bjei & %all
 cont9ue ) respect to su* qualifi$ f>m  
or cons]vation l& until ! e>li] (--     

7#a7 su* l& is transf]r$ to a qualifi$  
organization 7z def9$ 9 section         
#agj7;h77#c771  7#b7 ! liability = tax  
"u subsection 7e7 ( section #bjei )     
respect to su* l& has be5 satisfi$ or   
has become un5=ceable by reason ( lapse 
( "t1 or  7#c7 x is e/abli%$ to !       
satisfaction ( ! ,secret>y t no fur!r   
tax liability may arise "u section      
#bjei7;e7 ) respect to su* l&4  7c7     
,c]ta9 rules & def9itions made          
applicable  7#a7 ,9 g5]al ,! rule set =?
 9 p>agraphs 7#a71 7#c71 & 7#d7 (       
section #fcbd;,a7d7 %all apply ) respect
 to ! li5 impos$ by ?is section z if x 7
 a li5 impos$ by section #fcbd;,a4  7#b7
 ,qualifi$ f>m or cons]vation l& ,=     
purposes ( ?is section1 ! t]m qualifi$  
f>m or cons]vation l& includes qualifi$ 
replacem5t prop]ty 7)9 ! mean+ ( section
 #bjcb;,a7h77#c77;,b77 & qualifi$       
ex*ange prop]ty 7)9 ! mean+ ( section   
#bjcb;,a7i77#c774  7d7 ,sub/itution (   
security = li5 ,to ! ext5t provid$ 9    
regulations prescrib$ by ! ,secret>y1 ! 

furni%+ ( security may be sub/itut$ = ! 
li5 impos$ by ?is section4  4  7b7      
,con=m+ & cl]ical am5dm5ts  7#a7        
,section #ajaf7;a7 ( su* ,code is am5d$ 
by /rik+ & at ! end ( p>agraph 7#cf71 by
 /rik+ ! p]iod at ! end ( p>agraph 7#cg7
 & ins]t+ 1 &1 & by ins]t+ aft] p>agraph
 7#cg7 ! foll[+ new p>agraph3  7#ch7 to 
! ext5t provid$ 9 section #bjei7;f74  4 
7#b7 ,! table ( sections = "p ,,iv (    
sub*apt] ,a ( *apt] #aa ( su* ,code is  
am5d$ by ins]t+ aft] ! item relat+ to   
section #bjeh ! foll[+ new item3  ,sec4 
#bjei4 ,f>m & cons]vation l&4  4  7#c7  
,! table ( sections = "p ,,ii ( sub*apt]
 ,c ( *apt] #fd ( su* ,code is am5d$ by 
ins]t+ aft] ! item relat+ to section    
#fcbd;,b ! foll[+ new item3  ,sec4      
#fcbd;,c4 ,special li5 on f>m &         
cons]vation l&4  4  7c7 ,gift tax  7#a7 
,9 g5]al ,sub*apt] ,c ( *apt] #ab (     
subtitle ,b ( su* ,code 7d$uctions7 is  
am5d$ by r$esignat+ section #bebd z     
section #bebe & ins]t+ aft] section     
#bebc ! foll[+ new section3  #bebd4     

,gift ( f>m & cons]vation l&  7a7 ,9    
g5]al ,9 comput+ taxable gifts = !      
cal5d> ye>1 !re %all be all[$ z a       
d$uction 9 ! case ( a citiz5 or resid5t 
! adju/$ value ( all gifts made dur+ su*
 ye> :i* are qualifi$ f>m or cons]vation
 l& if ! donee elects ! application (   
?is section & files ! agreem5t ref]r$ to
 9 subsection 7c77#b7 ) respect to !    
qualifi$ f>m or cons]vation l&4  7b7    
,def9itions ,= purposes ( ?is section-- 
7#a7 ,qualifi$ f>m or cons]vation l& ,! 
t]m qualifi$ f>m or cons]vation l& means
 any real prop]ty--  7,a7 :i* is locat$ 
9 ! ,unit$ ,/ates1  7,b7 :i*1 on ! date 
( ! gift1 0 be+ us$--  7i7 z a f>m =    
f>m+ purposes 7)9 ! mean+ ( section     
#bjcb;,a7e771 or  7ii7 exclusively =    
cons]vation purposes 7)9 ! mean+ (      
section #agj7;h771  7,c7 ) respect to   
:i* !re is a record$ cov5ant :i* prev5ts
 any use ( su* l& :i* is inconsi/5t ) ! 
uses describ$ 9 subp>agraph 7,b71 &     
7,d7 :i* is designat$ 9 ! agreem5t      
ref]r$ to 9 subsection 7c77#b74  7#b7   

,adju/$ value ,! t]m adju/$ value means 
! value ( ! qualifi$ f>m or cons]vation 
l& = purposes ( ?is *apt]1 r$uc$ by !   
am\nt all[able z a d$uction "u p>agraph 
7#d7 ( section #bjec7;a74  7c7          
,election2 agreem5t  7#a7 ,election ,!  
election "u ?is section %all be made 9  
su* mann] z ! ,secret>y %all by         
regulations prescribe4 ,su* an election1
 once made1 %all be irrevocable4  7#b7  
,agreem5t ,! agreem5t ref]r$ to 9 ?is   
p>agraph is a writt5 agreem5t sign$ by  
ea* p]son 9 be+ :o has an int]e/ 7:e!r  
or n 9 possession7 9 any prop]ty        
designat$ 9 su* agreem5t cons5t+ to !   
application ( subsection 7d7 ) respect  
to su* prop]ty4  7#c7 ,modification (   
election & agreem5t p]mitt$ ,! proc$ures
 prescrib$ "u section #bjcb;,a7d77#c7   
%all apply = purposes ( ?is subsection4 
7d7 ,tax treatm5t ( dispositions &      
inconsi/5t uses ,9 ! case ( a dec$5t's  
e/ate :i* includes qualifi$ f>m or      
cons]vation l& ) respect to :i* !re is a
 cov5ant describ$ 9 subsection          

7c77#a77;,c7 7includ+ su* a cov5ant made
 by a prior dec$5t7--  7#a7 ,imposition 
( additional gift tax ,if1 at any "t    
aft] ! gift describ$ 9 subsection 7a7 & 
be=e ! dea? ( ! donee--  7,a7 ! donee   
disposes ( any int]e/ 7o!r ?an by a     
qualifi$ cons]vation contribution 7z    
def9$ 9 section #agj7;h777 9 qualifi$   
f>m or cons]vation l& & ! p]son acquir+ 
su* int]e/ is n subject to ! cov5ant    
describ$ 9 subsection 7b77#a77;,c71 or  
7,b7 ! donee uses su* l& 9 any mann] :i*
 violates ! t]ms ( su* cov5ant1  !n1 !re
 is h]eby impos$ an additional gift tax4
  7#b7 ,am\nt ( additional tax  7,a7 ,9 
g5]al ,! am\nt ( ! additional tax impos$
 by p>agraph 7#a7 ) respect to any      
int]e/ %all be ! am\nt equal to ! sum   
(--  7i7 ! adju/$ tax diff]5ce ) respect
 to ! gift1 &  7ii7 int]e/ at !         
und]paym5t rate e/abli%$ "u section     
#ffba on ! am\nt det]m9$ "u clause 7i7 =
 ! p]iod beg9n+ on ! date ( su* gift4   
7,b7 ,adju/$ tax diff]5ce ) respect to  
gift ,= purposes ( ?is subsection1 ! t]m

 adju/$ tax diff]5ce ) respect to ! gift
 means ! excess (--  7i7 :at w\ld h be5 
! gift tax liability if ! fair m>ket    
value ( ! int]e/ at ! "t ( ! disposition
 or use describ$ 9 p>agraph 7#a71 ov]   
7ii7 ! gift tax liability4  ,= purposes 
( ?is subp>agraph1 ! t]m gift tax       
liability means ! tax impos$ by section 
#beja r$uc$ by ! cr$its all[able aga9/  
su* tax4  7#c7 ,c]ta9 additional rules  
to apply ,rules simil> to ! rules (     
p>agraphs 7#b77;,d71 7#b77;,e71 7#c71   
7#d71 7#e71 & 7#h7 ( section #bjcb;,a7c7
 %all apply = purposes ( ?is subsection4
  7#d7 ,income tax treatm5t (           
dispositions ,= purposes ( *apt] #a1 9  
any case 9 :i* an additional tax is     
impos$ by ?is subsection by reason ( any
 disposition or use ( an int]e/1 su*    
int]e/ 7if n o!rwise dispos$ ( 9 a      
transaction 9 :i* ga9 is recogniz$7 %all
 be treat$ z sold at its fair m>ket     
value at ! "t ( ! disposition or use1 & 
ga9 %all be recogniz$ not)/&+ any       
provision ( subtitle ,a4  7e7 ,c]ta9    

additional rules ,to apply ,= purposes (
 ?is section1 rules simil> to ! foll[+  
rules %all apply3  7#a7 ,c]ta9 real     
prop]ty includ$ ,section                
#bjcb;,a7e77#c74  7#b7 ,def9itions ( f>m
 & f>m+ purposes ,p>agraphs 7#d7 & 7#e7 
( section #bjcb;,a7e74  7#c7 ,bond 9    
lieu ( p]sonal liability ,section       
#bjcb;,a7e77#aa74  7#d7 ,special rule = 
woodl&s ,section #bjcb;,a7e77#ab74  7#e7
 ,/atute ( limitation ,section          
#bjcb;,a7f74  7#f7 ,special rules =     
involunt>y conv]sions ( real prop]ty    
,section #bjcb;,a7h74  7#g7 ,ex*anges ( 
qualifi$ real prop]ty ,section          
#bjcb;,a7i74  7f7 ,cross ref]5ce ,see   
section #fcbd;,c = special li5 on f>m & 
cons]vation l&4  4  7#b7 ,con=m+ am5dm5t
 ,section #bebe ( su* ,code1 z am5d$ by 
p>agraph 7#a71 is am5d$ by /rik+        
sections #bebb & #bebc & ins]t+ sections
 #bebb1 #bebc1 & #bebd4  7#c7 ,cl]ical  
am5dm5t ,! table ( sections = su*       
sub*apt] is am5d$ by /rik+ ! la/ item & 
ins]t+ ! foll[+ new items3  ,sec4 #bebd4

 ,gift ( f>m & cons]vation l&4 ,sec4    
#bebe4 ,ext5t ( d$uctions4  4  7d7      
,g5]ation skipp+ tax  7#a7 ,exclusion   
,subsection 7b7 ( section #bfaa ( su*   
,code 7relat+ to c]ta9 transf]s exclud$7
 is am5d$ by r$esignat+ p>agraph 7#b7 z 
p>agraph 7#c7 & by ins]t+ aft] p>agraph 
7#a7 ! foll[+ new p>agraph3  7#b7 any   
transf] :i*1 if made int] vivos by an   
individual1 w\ld be treat$ z a d$uction 
"u section #bebd 7relat+ to gift ( f>m &
 cons]vation l&71 or  4  7#b7           
,applicable rules ,subsection 7b7 (     
section #bfaa ( su* ,code is am5d$ by   
add+ at ! end ! foll[+ flu% s5t5ce3  ,= 
purposes ( p>agraph 7#b71 rules simil>  
to ! rules ( section #bebd %all apply4 4
  7e7 ,effective date ,! am5dm5ts made  
by ?is section %all apply to e/ates (   
dec$5ts dy+1 gifts made1 &              
g5]ation-skipp+ transf]s aft] ,decemb]  
#ca1 #bjab4