(a) In general

Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

30E. National Scenic Trail conservation credit

(a) Allowance of credit

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the fair market value of any National Scenic Trail conservation contribution of the taxpayer for the taxable year.

(b) National Scenic Trail conservation contribution

For purposes of this section—

(1) In general

The term National Scenic Trail conservation contribution means any qualified conservation contribution—

(A)

to the extent the qualified real property interest with respect to such contribution includes a National Scenic Trail (or portion thereof) and its trail corridor, and

(B)

with respect to which the taxpayer makes an election under this section.

(2) National Scenic Trail

The term National Scenic Trail means any trail authorized and designated under section 5 of the National Trails System Act (16 U.S.C. 1244).

(3) Trail corridor

(A) In general

The term trail corridor means so much of the corridor of a trail as is—

(i)

subject to subparagraph (B), not less than 50 feet wide on each side of such trail, and

(ii)

not greater than 2,640 feet wide.

(B) Exceptions

(i) Less than 50 feet wide on a side of the trail

In the case of an interest in real property of the taxpayer which includes less than 50 feet on either side of the trail, the trail corridor shall include the entire distance with respect to such interest on such side.

(ii) Building and structures near the trail

In the case of an interest in real property of the taxpayer which includes a residence or structure owned by the taxpayer which is located less than 50 feet from the trail, the trail corridor for the side of the trail on which the residence or structure is located shall include such distance from the trail as is determined appropriate by the taxpayer.

(4) Qualified conservation contribution; qualified real property interest

The terms qualified conservation contribution and qualified real property interest have the respective meanings given such terms by section 170(h), except that paragraph (2)(A) thereof shall be applied without regard to any qualified mineral interest (as defined in paragraph (6) thereof).

(c) Special rules

(1) Fair market value

Fair market value of any National Scenic Trail conservation contribution shall be determined in the same manner as qualified conservation contributions under section 170, except that in any case, to the extent practicable, fair market value shall be determined by reference to the highest and best use of the real property with respect to such contribution.

(2) Election irrevocable

An election under this section may not be revoked.

(3) Denial of double benefit

No deduction shall be allowed under this chapter with respect to any qualified conservation contribution with respect to which an election is made under this section.

(d) Application with other credits

(1) Business credit treated as part of general business credit

So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property used in a trade or business or held for the production of income shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).

(2) Personal credit

For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after the application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.

(e) Carryforward of unused credit

(1) In general

If the credit allowable under subsection (a) exceeds—

(A)

the limitation imposed by section 26(a) for any taxable year, reduced by

(B)

the sum of the credits allowable under subpart A (other than this section) for the taxable year,

such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.

(2) Limitation

No credit may be carried forward under this subsection to any taxable year following the tenth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis.

(b) Continued use not inconsistent with conservation purposes

A contribution of an interest in real property shall not fail to be treated as a National Scenic Trail conservation contribution (as defined in section 30E(b) of the Internal Revenue Code of 1986) solely by reason of continued use of the real property, such as for recreational or agricultural use (including motor vehicle use related thereto), if, under the circumstances, such use does not impair significant conservation interests and is not inconsistent with the purposes of the National Trails System Act (16 U.S.C. 1241 et seq.).

(c) Study regarding efficacy of National Scenic Trail conservation credit

(d) Conforming amendment

The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

(e) Effective date

The amendments made by this section shall apply to contributions made after the date of the enactment of this Act.