HouseH.R. 9398119th Congress

Historic Preservation and Land Conservation Certainty Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9398 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                                H. R. 9398

      To provide an election to resolve certain open partnership 
      controversies involving donations of conservation easements.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 23, 2026

  Mr. Carey introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
      To provide an election to resolve certain open partnership 
      controversies involving donations of conservation easements.

    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 ``Historic Preservation and Land 
Conservation Certainty Act''.

SEC. 2. ELECTION TO RESOLVE CERTAIN OPEN PARTNERSHIP CONTROVERSIES 
              INVOLVING DONATIONS OF CONSERVATION EASEMENTS.

    (a) Definitions.--For purposes of this section--
            (1) Eligible contribution.--The term ``eligible 
        contribution'' means any qualified conservation contribution 
        (as defined in section 170(h)(1) of the Internal Revenue Code 
        of 1986) made by a partnership in a taxable year ending on or 
        before December 31, 2024, with respect to which a deduction was 
        claimed under section 170 of such Code on the partnership 
        return for such year. For purposes of this section, such 
        contribution shall be treated as made by the partnership that 
        was the donor of the contributed property for purposes of 
        section 170 of such Code, determined without regard to any 
        agency or nominee arrangement.
            (2) Claimed deduction.--The term ``claimed deduction'' 
        means the aggregate amount of the deduction with respect to an 
        eligible contribution that was allocable to the ultimate 
        taxpayer partners, as reported on Schedule K-1 or similar 
        statements furnished (directly or indirectly through 1 or more 
        pass-through entities) to such partners for the taxable year in 
        which such deduction is taken into account under section 
        706(a), section 1366(a), or other applicable provision of the 
        Internal Revenue Code of 1986, including any amendments filed 
        on or before the date the election statement is filed. In 
        determining the claimed deduction, the electing partnership may 
        rely on reported amounts (as amended) unless it has actual 
        knowledge that a different amount was allocable to ultimate 
        taxpayer partners, and may rely on written representations from 
        upper-tier pass-through entities. Any discrepancy between the 
        amount used in the election statement and the actual aggregate 
        amount shall be subject to adjustment under subsection (h), but 
        shall not by itself invalidate the election.
            (3) Open matter.--The term ``open matter'' means, with 
        respect to any eligible contribution, a contribution with 
        respect to which--
                    (A) as of the date the election statement is filed, 
                the period for assessment of any tax imposed by chapter 
                1 of the Internal Revenue Code of 1986 that is 
                attributable to such contribution has not expired 
                (determined after the application of section 6501 of 
                such Code (including any extension under section 
                6501(c)(4) of such Code and any suspension under 
                section 6503 of such Code) and, to the extent 
                applicable, section 6229 of such Code (as in effect for 
                partnership taxable years beginning before January 1, 
                2018) and section 6235 of such Code); or
                    (B) the Secretary has issued to the partnership, 
                the applicable partnership representative, or any 
                person authorized to act for the partnership, a written 
                notice or request identifying the partnership, the 
                taxable year, and the contribution (or the conservation 
                easement transaction of which such contribution is a 
                part), indicating review, examination, or proposed 
                adjustment of the Federal income tax treatment thereof, 
                or an administrative appeal or judicial proceeding is 
                pending with respect thereto.
            (4) Election period.--The term ``election period'' means 
        the 180-day period beginning on the date of enactment of this 
        Act.
            (5) Common marketing group.--
                    (A) In general.--The term ``common marketing 
                group'' means all partnerships with eligible 
                contributions with respect to which the same principal 
                organizer or manager (as defined in subparagraph (B)), 
                even if acting in conjunction with 1 or more other 
                persons, was principally responsible for organizing or 
                managing the plan or arrangement pursuant to which such 
                eligible contributions were solicited, structured, or 
                facilitated, and includes all partnerships with 
                eligible contributions with respect to which any person 
                related (within the meaning of section 267(b) or 
                section 707(b)(1) of the Internal Revenue Code of 1986) 
                to such principal organizer or manager was so 
                principally responsible.
                    (B) Principal organizer or manager.--For purposes 
                of subparagraph (A), a person shall be treated as a 
                principal organizer or manager with respect to an 
                eligible contribution if such person (or any person 
                related to such person within the meaning of section 
                267(b) or section 707(b)(1) of the Internal Revenue 
                Code of 1986) satisfies any of the following 
                conditions:
                            (i) Such person is identified as an 
                        organizer, manager, sponsor, promoter, 
                        arranger, or similar role in any written 
                        offering material, subscription agreement, 
                        marketing presentation, partnership agreement, 
                        management agreement, side letter, or other 
                        written communication provided to any partner 
                        or prospective partner in connection with the 
                        partnership making the eligible contribution.
                            (ii) Such person received, directly or 
                        indirectly, or was entitled to receive, any 
                        fee, commission, compensation, profit interest, 
                        or other economic benefit (other than 
                        reimbursement of reasonable out-of-pocket 
                        expenses) in connection with organizing, 
                        managing, marketing, structuring, facilitating, 
                        or arranging financing for the eligible 
                        contribution, or for the acquisition, holding, 
                        or donation of the property with respect to 
                        which the eligible contribution was made.
                            (iii) Such person served, directly or 
                        indirectly, as a general partner, managing 
                        member, manager, trustee, investment manager, 
                        or similar controlling person with authority 
                        (under governing documents or contract) over 
                        the partnership's acquisition, holding, 
                        management, disposition, or donation of the 
                        property, or over the decision to make the 
                        eligible contribution.
                    (C) Overlapping groups.--If a partnership would be 
                treated as a member of more than 1 common marketing 
                group under this paragraph, all such groups shall be 
                treated as a single common marketing group for purposes 
                of this section.
            (6) Designated partnership.--The term ``designated 
        partnership'' means the partnership designated under subsection 
        (d)(3).
            (7) Electing partnership.--The term ``electing 
        partnership'' means the designated partnership (in the case of 
        a common marketing group) or the partnership that made the 
        eligible contribution (in all other cases).
            (8) Non-contributing partner.--The term ``non-contributing 
        partner'' means any ultimate taxpayer partner identified under 
        subsection (f)(1)(A)(ii).
            (9) Election statement.--The term ``election statement'' 
        means the written statement filed under subsection (b)(2) that 
        includes the information required under subsection (b)(3).
            (10) Applicable partnership representative.--The term 
        ``applicable partnership representative'' means the partnership 
        representative designated under section 6223(a) of the Internal 
        Revenue Code of 1986 (for partnership taxable years beginning 
        after December 31, 2017) or the tax matters partner designated 
        under section 6231(a)(7) of such Code (as in effect for 
        partnership taxable years beginning before January 1, 2018).
            (11) Pass-through entity.--The term ``pass-through entity'' 
        means any partnership, S corporation, estate, or trust.
            (12) Ultimate taxpayer partner.--The term ``ultimate 
        taxpayer partner'' means, with respect to any portion of a 
        deduction attributable to an eligible contribution, the person 
        that, after taking into account allocations of such portion 
        through one or more pass-through entities, actually takes such 
        portion into account in determining the tax imposed by chapter 
        1 and receives the Federal income tax benefit of such portion, 
        whether as a partner, shareholder, beneficiary, owner, or 
        otherwise. Except as provided in the preceding sentence, a 
        pass-through entity shall not be treated as an ultimate 
        taxpayer partner. A pass-through entity shall be treated as an 
        ultimate taxpayer partner to the extent such entity is itself 
        subject to tax under chapter 1 and claims the benefit of such 
        portion.
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
    (b) Election; Making Election; Effect.--
            (1) In general.--Notwithstanding any other provision of 
        this title, in the case of any eligible contribution with an 
        open matter, the electing partnership may elect to have this 
        section apply. An election under this section may include only 
        eligible contributions that have an open matter as of the date 
        the election statement is filed.
            (2) Making the election.--An election under this section 
        shall be made by filing, not later than the last day of the 
        election period, an election statement with the Secretary at 
        the place prescribed under section 6091 of the Internal Revenue 
        Code of 1986 for filing the partnership return of the electing 
        partnership, accompanied by the remittance required under 
        subsection (e)(2). Such remittance shall be in the form of a 
        cashier's check, certified check, money order, or other check 
        payable to the ``United States Treasury'', and shall identify 
        the electing partnership and state that it relates to an 
        election under this section.
            (3) Required contents of election statement.--The election 
        statement shall set forth, with respect to the eligible 
        contribution--
                    (A) the name, address, and employer identification 
                number of the electing partnership and, in the case of 
                a common marketing group, the name and employer 
                identification number of each partnership whose 
                eligible contributions are included in the election;
                    (B) the taxable year or years of the contributions 
                encompassed by the election;
                    (C) identification of each donee and the property, 
                including the date of each eligible contribution;
                    (D) the claimed deduction;
                    (E) the settlement limitation amount determined 
                under subsection (c);
                    (F) the tax component determined under subsection 
                (e)(1)(B);
                    (G) the penalty component determined under 
                subsection (e)(1)(C);
                    (H) the settlement amount determined under 
                subsection (e)(1)(A); and
                    (I) in the case of an electing partnership with a 
                non-contributing partner, the schedule described in 
                subsection (f)(1).
            (4) Effect; waiver.--If an election under this section 
        becomes effective under paragraph (6)--
                    (A) the deduction otherwise allowable under section 
                170 of the Internal Revenue Code of 1986 for the 
                eligible contribution shall not exceed the settlement 
                limitation amount;
                    (B) the settlement amount shall be due and payable 
                as provided in subsection (e);
                    (C) except as provided in subsection (f), payment 
                of the settlement amount shall resolve all Federal 
                income tax liability (including penalties and interest) 
                attributable to the excess of the claimed deduction 
                over the settlement limitation amount; and
                    (D) the electing partnership, each partner thereof, 
                each pass-through entity through which any portion of 
                the claimed deduction is allocable, and each ultimate 
                taxpayer partner to which any portion of the claimed 
                deduction is allocable waive any right to contest the 
                amounts described in subparagraphs (E), (F), (G), or 
                (H) of paragraph (3), administratively or judicially.
            (5) Courtesy notice.--Within 10 days of filing an election 
        statement, the electing partnership shall provide a copy 
        thereof to any revenue agent, appeals officer, or chief counsel 
        attorney assigned to the partnership that made the eligible 
        contribution, and to the Clerk of the Tax Court, any United 
        States District Court, or any Court of Appeals in which 
        proceedings involving the eligible contribution are pending. 
        Copies provided to courts shall exclude any schedule described 
        in subsection (f)(1) and shall redact taxpayer identification 
        numbers and street addresses. Failure to provide such notice 
        shall not affect the validity of the election.
            (6) Date election becomes effective.--An election that 
        satisfies the requirements of this subsection and is 
        accompanied by the required remittance under subsection (e)(2) 
        shall be effective upon filing. No acceptance, acknowledgment, 
        determination, form, regulation, or other administrative action 
        by the Secretary shall be required for the election to be 
        effective. No requirement or procedural step other than those 
        expressly set forth in this section may be imposed as a 
        condition to making or giving effect to an election.
            (7) Timely mailing.--For purposes of this section, section 
        7502 of the Internal Revenue Code of 1986 (determined without 
        regard to subsection (f) thereof) shall apply to the election 
        statement, any required schedule or authorization, and any 
        accompanying remittance.
            (8) Suspension of limitations.--The running of any period 
        of limitation on assessment with respect to any tax 
        attributable to an eligible contribution for which an election 
        becomes effective under paragraph (6) shall be suspended from 
        the date of filing of the election statement until the earlier 
        of 2 years after the date such election becomes effective or 
        the date the election becomes void under subsection (h)(4), and 
        for 90 days thereafter.
            (9) Signature; finality.--The election statement shall be 
        signed by the applicable partnership representative. An 
        effective election shall be irrevocable and binding on the 
        electing partnership, each partner thereof, each partnership in 
        a common marketing group whose authorization is included under 
        subsection (d)(3), each pass-through entity through which any 
        portion of the claimed deduction is allocable, and each 
        ultimate taxpayer partner to which any portion of the claimed 
        deduction is allocable. Except as expressly provided in 
        subsection (f)(6) and (h)(4), such election shall not be 
        subject to judicial review. Such election shall be treated as a 
        closing agreement under section 7121 with respect to the 
        matters resolved under paragraph (4)(C), and shall be deemed 
        approved by the Secretary under section 7121(b) as of the date 
        the election becomes effective.
    (c) Settlement Limitation Amount.--For purposes of this section--
            (1) General rule.--Except as provided in paragraph (2), the 
        term ``settlement limitation amount'' means an amount equal to 
        2.5 times the sum of the relevant basis (as defined in section 
        170(h)(7)(B) of the Internal Revenue Code of 1986) of all 
        partners with respect to the eligible contribution.
            (2) Excepted contributions.--In the case of an eligible 
        contribution meeting the requirements of subparagraph (C), (D), 
        or (E) of paragraph (7) of the Internal Revenue Code of 1986, 
        the term ``settlement limitation amount'' means an amount equal 
        to 3.2 times the aggregate amount of capital contributed, 
        directly or indirectly, by the ultimate taxpayer partners, 
        excluding any amount derived from a loan, insurance 
        arrangement, or other financing provided by the principal 
        organizer or manager, or by any person related (within the 
        meaning of section 267(b) or section 707(b)(1) of such Code) to 
        such principal organizer or manager.
    (d) Aggregation for Common Marketing Groups.--
            (1) Single contribution treatment.--All eligible 
        contributions of partnerships in a common marketing group that 
        are described in the election statement and that each has an 
        open matter as of the date the election statement is filed 
        shall be treated as a single eligible contribution for purposes 
        of this section.
            (2) Computation on combined basis.--In the case of a common 
        marketing group, the claimed deduction, settlement limitation 
        amount, and settlement amount shall be computed by aggregating 
        across all partnerships and all taxable years in the group with 
        respect to the eligible contributions described in the election 
        statement.
            (3) Designation and authorizations.--A common marketing 
        group shall act through a designated partnership. The 
        designated partnership shall be identified by name and employer 
        identification number in a written authorization executed by 
        the applicable partnership representative of each partnership 
        in the group. Each authorization shall grant filing and 
        remittance authority and acknowledge that the executing 
        partnership is jointly and severally liable for the settlement 
        amount until paid in full.
            (4) Validity condition.--Except as provided in paragraph 
        (5), an election by a designated partnership shall not be 
        effective unless the election statement includes authorizations 
        from each partnership in the common marketing group.
            (5) Effect of final decisions.--If 1 or more partnerships 
        in a common marketing group are precluded from electing under 
        subsection (g)(3), the remaining partnerships may make a group 
        election if all partnerships to which subsection (g)(3) does 
        not apply provide authorizations under this paragraph. In any 
        case in which this paragraph applies, paragraph (2) shall be 
        applied by excluding any partnership precluded under subsection 
        (g)(3).
            (6) Joint and several liability.--Each partnership in a 
        common marketing group shall be jointly and severally liable 
        for the settlement amount until paid in full.
    (e) Payment of Settlement Amount.--
            (1) Settlement amount.--For purposes of this section--
                    (A) In general.--The term ``settlement amount'' 
                means the sum of--
                            (i) the tax component; and
                            (ii) the penalty component.
                    (B) Tax component.--The tax component is equal to 
                the product of--
                            (i) the excess of the claimed deduction 
                        (the claimed deduction is the combined total 
                        amount deducted by all the ultimate taxpayer 
                        partners) over the settlement limitation 
                        amount; and
                            (ii) the highest rate of tax in effect 
                        under section 1 of the Internal Revenue Code of 
                        1986 for any taxable year encompassed by the 
                        election.
                    (C) Penalty component.--The penalty component is 
                equal to the amount that would be determined under 
                section 6662 of the Internal Revenue Code of 1986 by 
                applying the applicable penalty rate under paragraph 
                (3) to an underpayment equal to the tax component and 
                by treating the settlement limitation amount as the 
                correct amount of the deduction.
            (2) Payment.--An election partnership shall pay the 
        settlement amount not later than the last day of the election 
        period. Except as provided in subsection (f), an election shall 
        not be effective unless the electing partnership remits the 
        full settlement amount with the election statement.
            (3) Applicable penalty rate.--The applicable penalty rate 
        shall be--
                    (A) the rate applicable under section 6662(h) of 
                the Internal Revenue Code of 1986 in any case in which 
                the claimed deduction exceeded 200 percent of the 
                settlement limitation amount; and
                    (B) the rate applicable under section 6662(a) of 
                such Code in any other case the application of the rate 
                under the preceding sentence shall be determined 
                without regard to section 6664(c) of the Internal 
                Revenue Code of 1986.
            (4) Interest waiver.--In the case of any portion of the 
        settlement amount remitted by the electing partnership not 
        later than the last day of the election period, any interest 
        under section 6601 of the Internal Revenue Code of 1986 with 
        respect to such portion for periods ending before the date of 
        remittance is waived. Interest shall accrue in full on any 
        amount not so remitted.
            (5) Assessment and collection.--Any settlement amount (and 
        any amount assessed under subsection (f)) shall be assessed and 
        collected in the same manner as tax imposed by chapter 1 of the 
        Internal Revenue Code of 1986. The Secretary shall accept and 
        apply any remittance as a payment of the settlement amount 
        without any receipt, notice, or administrative action affecting 
        the effectiveness of the election.
    (f) Non-Contributing Partners.--
            (1) Identification of non-contributing partners.--
                    (A) In general.--If the electing partnership does 
                not remit the full settlement amount solely because one 
                or more ultimate taxpayer partners fail to provide 
                their respective allocable amounts, the election 
                statement shall include a schedule identifying--
                            (i) each ultimate taxpayer partner who has 
                        contributed such partner's allocable amount;
                            (ii) each ultimate taxpayer partner who has 
                        not contributed such partner's allocable 
                        amount; and
                            (iii) the following information for each 
                        partner described in clauses (i) and (ii):
                                    (I) The name, current address, 
                                taxpayer identification number of such 
                                partner.
                                    (II) The amount described in 
                                subparagraph (B)(i) with respect to 
                                such partner.
                                    (III) The allocable amount for such 
                                partner.
                    (B) Allocable amount.--For purposes of this 
                subsection, a partner's allocable amount is equal to 
                the product of the settlement amount and a fraction--
                            (i) the numerator of which is such 
                        partner's share of the deduction (as reported 
                        on the Schedule K-1 or similar statement, 
                        including amendments filed before the date the 
                        election statement is filed); and
                            (ii) the denominator of which is the total 
                        claimed deduction.
            (2) Reduced remittance.--In the case of an election 
        statement including a schedule under paragraph (1), the amount 
        of the remittance required under subsection (e)(2) shall be 
        reduced by the aggregate allocable amounts of non-contributing 
        partners.
            (3) Assessment against non-contributing partners.--The 
        Secretary shall assess against each non-contributing partner an 
        amount equal to the sum of--
                    (A) such partner's allocable amount, and
                    (B) an amount equal to 25 percent of the product of 
                the tax component determined under subsection (e)(1)(B) 
                and the fraction described in paragraph (1)(B).
        Such amount shall be payable upon notice and demand.
            (4) Interest.--Interest under section 6601 of the Internal 
        Revenue Code of 1986 shall accrue on any amount assessed under 
        this subsection beginning on the day after the last day of the 
        election period.
            (5) Period of limitations.--For purposes of section 6501 of 
        the Internal Revenue Code of 1986, the period for assessment of 
        any amount under this subsection shall not expire before 3 
        years after the last day of the election period.
            (6) Assessment procedures; judicial review.--Amounts 
        assessed under paragraph (3) shall be immediately assessable, 
        and the restrictions under section 6213(a) of the Internal 
        Revenue Code of 1986 on assessment and collection shall not 
        apply. A non-contributing partner may contest the computation 
        of such partner's allocable amount only by paying the amount 
        assessed and filing a claim for refund under section 6511 of 
        such Code. Nothing in this subsection shall limit a non-
        contributing partner's right to bring suit under section 7422 
        of such Code following disallowance of such claim.
    (g) Coordination With Prior Proceedings.--
            (1) Prior settlements.--If a partnership has entered into a 
        closing agreement under section 7121 of the Internal Revenue 
        Code of 1986 or a compromise under section 7122 of such Code 
        with respect to an eligible contribution, the partnership shall 
        exclude from the election any matters resolved thereby.
            (2) Pending stipulated decisions.--A partnership with 
        respect to which a stipulated decision has been lodged with the 
        Tax Court but not yet entered may withdraw such stipulation and 
        make an election, provided that such withdrawal occurs before 
        the last day of the election period.
            (3) Final decisions.--No election may be made with respect 
        to an eligible contribution if a decision of the Tax Court has 
        become final within the meaning of section 7481 of the Internal 
        Revenue Code of 1986, or if a judgment of any other court has 
        become final and is no longer subject to review (including by 
        petition for writ of certiorari).
            (4) Section 6226 elections.--If a partnership has made an 
        election under section 6226 of the Internal Revenue Code of 
        1986 with respect to an imputed underpayment attributable to an 
        eligible contribution, an election under this section may be 
        made only if such election under section 6226 of such Code is 
        revoked. Notwithstanding section 6226 of such Code and any 
        regulations thereunder, such revocation shall be made by a 
        written statement signed by the applicable partnership 
        representative and included with the election statement, and 
        shall be effective solely with respect to the eligible 
        contribution and items attributable thereto.
    (h) Examination for Computational Accuracy.--
            (1) Authority.--Notwithstanding subsection (b)(4), the 
        Secretary may examine any election solely to verify the 
        correctness of computational elements, including the claimed 
        deduction, relevant basis or capital contributions, settlement 
        limitation amount, tax component, and penalty component. Such 
        examination shall not extend to any determination of fair 
        market value or any other substantive issue resolved by the 
        election.
            (2) Adjustment for discrepancy.--If the Secretary 
        determines that the settlement amount was incorrectly computed, 
        the Secretary shall notify the electing partnership of such 
        discrepancy and the corrected amount by mailing notice to the 
        last known address of such partnership. Except as provided in 
        subsection (h)(3) and (h)(4), any additional amount due shall 
        be payable within 90 days of such notification.
            (3) Administrative review.--If, within the 90-day period 
        described in subsection (h)(2) the electing partnership files a 
        written protest or request for administrative review of all or 
        any portion of the additional amount, the Secretary shall 
        provide administrative review, including review by the 
        Independent Office of Appeals if otherwise available. 
        Assessment and collection of the disputed portion shall be 
        suspended while such administrative review is pending. Upon 
        conclusion of such review, the Secretary shall mail to the 
        electing partnership a notice of final administrative 
        determination setting forth the amount, if any, finally 
        determined by the Secretary.
            (4) Judicial review.--The electing partnership may contest 
        the computation of any additional amount determined under this 
        subparagraph by filing a petition with the Tax Court without 
        prior payment or, after payment, by filing a claim for refund 
        under section 6511. Any petition to the Tax Court shall be 
        filed within 90 days after the Secretary mails the notice 
        described in clause (ii), or, if administrative review is 
        timely requested under clause (iii), within 90 days after the 
        Secretary mails the notice of final administrative 
        determination. The Tax Court shall have jurisdiction over any 
        timely petition filed under this clause, notwithstanding that 
        the electing partnership is not otherwise liable for tax under 
        this title, and may redetermine the correct amount of the 
        disputed additional amount, but only with respect to the 
        computational elements described in clause (i). No assessment, 
        levy, or proceeding in court for collection of the disputed 
        portion shall be made, begun, or prosecuted until the 
        expiration of the applicable 90-day period, or, if a petition 
        is timely filed, until the decision of the Tax Court has become 
        final under section 7481. Nothing in this paragraph shall be 
        construed to limit the electing partnership's right to bring 
        suit under section 7422 following disallowance of such claim.
            (5) Effect on election.--No election shall be void or 
        otherwise impaired solely because the electing partnership 
        exercises its rights under (h)(3) or (h)(4). The election shall 
        remain in effect pending any administrative review, Tax Court 
        proceeding, or refund claim or suit. If any additional amount 
        finally determined under this subparagraph is paid within 90 
        days after the close of the applicable 90-day period described 
        (h)(4) if no petition is filed, or within 90 days after the 
        decision of the Tax Court becomes final, the election shall 
        remain in effect at the corrected settlement amount, and no 
        further liability (other than interest under section 6601 on 
        the additional amount from the last day of the election period) 
        shall arise from such adjustment.
            (6) Election void.--The election shall be void from the 
        beginning only if--
                    (A) the additional amount is not paid within the 
                90-day period; and
                    (B) the electing partnership does not contest the 
                Secretary's determination administratively or 
                judicially under (h)(4) or (h)(5).
            (7) Effect of voided election.--If an election becomes void 
        under paragraph (6), any amounts previously remitted shall be 
        treated as a payment of tax and applied against any liability 
        subsequently determined with respect to the eligible 
        contribution.
            (8) Time limit.--The Secretary may not provide notification 
        under paragraph (2) after the date that is 2 years after the 
        date the election becomes effective under subsection (b)(6).
    (i) No Inference; Preservation of Other Remedies.--Nothing in this 
section shall be construed to create any inference regarding the proper 
tax treatment or fair market value of any eligible contribution for 
which an election is not made under this section. Nothing in this 
section shall limit or affect any penalty under section 6694, 6695, 
6700, 6701, or any other provision of the Internal Revenue Code of 1986 
applicable to any person other than the electing partnership or its 
partners.

SEC. 3. CONTRIBUTING-BUILDING STANDARD FOR CERTAIN QUALIFIED 
              CONSERVATION CONTRIBUTIONS AND CERTIFIED HISTORIC 
              STRUCTURES.

    (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''.
    (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 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.''.
    (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.
                                 <all>