IRS Section 170

Internal Revenue Code, Section 170(h)
QUALIFIED CONSERVATION CONTRIBUTIONS, AS AMENDED
This Act became law on December 17, 1980 (Public Law 96-541, 26 U.S.C. 170(h) and has
been amended three times.
Qualified conservation
contribution
26 U.S.C. 170(h)(1),
In general

Section 170(h)
(1) For purposes of subsection (f)(3)(B)(iii), the
term “qualified conservation contribution” means a
contribution—
(A) of a qualified real property interest,
(B) to a qualified organization,
(C) exclusively for conservation purposes.

26 U.S.C. 170(h)(2),
Qualified real
property interest

(2) For purposes of this subsection, the term “qualified
real property interest” means any of the following interests
in real property:
(A) the entire interest of the donor other than a qualified mineral interest,
(B) a remainder interest, and
(C) a restriction (granted in perpetuity) on the use
which may be made of the real property.

26 U.S.C. 170(h)(3),
Qualified organization

(3) For the purposes of paragraph (1), the term “qualified
organization” means an organization which—
(A) is described in clause (v) or (vi) of subsection (b)(1)(A), or
(B) is described in section 501(c)(3) and—
(i) meets the requirements of section 509(a)(2), or
(ii) meets the requirements of section 509(a)(3) and
is controlled by an organization described in subparagraph
(A) or in clause (i) of this subparagraph.

26 U.S.C. 170(h)(4),
Conservation purpose
defined, in general

(4)(A) For purposes of this subsection, the term
“conservation purposes” means—
(i) the preservation of land areas for outdoor recreation by, or the education of, the general public,
(ii) the protection of a relatively natural habitat of
fish, wildlife, or plants, or similar ecosystem,
(iii) the preservation of open space (including farmland and forest land) where such preservation is—
(I) for the scenic enjoyment of the general public, or
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Internal Revenue Code, Section 170(h)

(II) pursuant to a clearly delineated Federal,
State, or local governmental conservation policy, and will
yield a significant public benefit, or
(iv) the preservation of a historically important land
area or a certified historic structure.
Certified historic
structure

(B) For purposes of subparagraph (A)(iv), the term
“certified historic structure” means any building, structure, or land area which—
(i) is listed in the National Register, or
(ii) is located in a registered historic district (as
defined in Section 47(c)(3)(B)) and is certified by the
Secretary of the Interior to the Secretary [of the Treasury]
as being of historic significance to the district.
A building, structure, or land area satisfies the preceding sentence if it satisfies such sentence either at the time
of the transfer or on due date (including extensions) for filing the transferor’s return under this chapter for the taxable
year in which the transfer is made.

26 U.S.C. 170(h)(5),
Exclusively for conservation purposes
Conservation purpose
must be protected
No surface mining
permitted

Special rule

26 U.S.C. 170(h)(6),
Qualified mineral
interest

(5) For purposes of this subsection—
(A) A contribution shall not be treated as exclusively
for conservation purposes unless the conservation purpose
is protected in perpetuity.
(B)(i) Except as provided in clause (ii), in the case of
a contribution of any interest where there is a retention
of a qualified mineral interest, subparagraph (A) shall not
be treated as met if at any time there may be extraction or
removal of minerals by any surface mining method.
(ii) With respect to any contribution of property
in which the ownership of the surface estate and mineral
interests has been and remains separated, subparagraph (A)
shall be treated as met if the probability of surface mining
occurring on such property is so remote as to be negligible.
(6) For purposes of this subsection, the term “qualified
mineral interest” means—
(A) subsurface oil, gas, or other minerals, and
(B) the right to access to such minerals.

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