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erection of utility lines, the dumping of trash, and the use of
signs. See sec. 1.170A-7(b)(1)(ii), Income Tax Regs.
In the Tax Reduction and Simplification Act of 1977 (TRSA),
Pub. L. 95-30, sec. 309(a), 91 Stat. 154, Congress enacted the
initial version of section 170(f)(3)(B)(iii), creating an
exception from the general rule of section 170(f)(3)(A) for an
“easement with respect to real property granted in perpetuity to
an organization described in subsection (b)(1)(A) exclusively for
conservation purposes”.16 The conference report on TRSA
explained that
While it is intended that the term “conservation
purposes” be liberally construed with regard to the
types of property with respect to which deductible
conservation easements * * * may be granted, it is also
intended that contributions of perpetual easements * *
* qualify for the deduction only in situations where
the conservation purposes of protecting or preserving
the property will in practice be carried out. Thus, it
is intended that a contribution of a conservation
easement * * * qualify for a deduction only if the
holding of the easement * * * is related to the purpose
16 Congress coined the terms “conservation purposes” and
“exclusively for conservation purposes” in the Tax Reform Act of
1976 (TRA 1976), Pub. L. 94-455, sec. 2124(e)(1)(C) and (D),
90 Stat. 1919. Congress provided further in the TRA 1976 that
the term “conservation purposes” in this context means (1) “the
preservation of land areas for public outdoor recreation or
education, or scenic enjoyment”, (2) “the preservation of
historically important land areas or structures”, or (3) “the
protection of natural environmental systems”. TRA 1976 sec.
2124(e)(1)(D); see also sec. 170(f)(3)(C), as enacted by TRA
1976. Congress did not in the TRA 1976 define (or indicate the
meaning of) either the word “exclusively” or the term
“exclusively for conservation purposes”. Nor does the
legislative history of the TRA 1976 shed any light on the meaning
of that word or that term.
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