120 STAT. 3052
PUBLIC LAW 109–432—DEC. 20, 2006 (A) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means— (i) a governmental unit referred to in section 170(c)(1) of such Code, or an agency or department thereof operated primarily for 1 or more of the conservation purposes specified in clause (i), (ii), or (iii) of section 170(h)(4)(A) of such Code, or (ii) an entity which is— (I) described in section 170(b)(1)(A)(vi) or section 170(h)(3)(B) of such Code, and (II) organized and at all times operated primarily for 1 or more of the conservation purposes specified in clause (i), (ii), or (iii) of section 170(h)(4)(A) of such Code. (B) QUALIFYING LETTER OF INTENT.—The term ‘‘qualifying letter of intent’’ means a written letter of intent which includes the following statement: ‘‘The transferee’s intent is that this acquisition will serve 1 or more of the conservation purposes specified in clause (i), (ii), or (iii) of section 170(h)(4)(A) of the Internal Revenue Code of 1986, that the transferee’s use of the deposits so acquired will be consistent with section 170(h)(5) of such Code, and that the use of the deposits will continue to be consistent with such section, even if ownership or possession of such deposits is subsequently transferred to another person.’’. (6) TAX ON SUBSEQUENT TRANSFERS.— (A) IN GENERAL.—A tax is hereby imposed on any subsequent transfer by an eligible entity of ownership or possession, whether by sale, exchange, or lease, of an interest acquired directly or indirectly in— (i) a conservation sale described in paragraph (1), or (ii) a transfer described in clause (i), (ii), or (iii) of subparagraph (D). (B) AMOUNT OF TAX.—The amount of tax imposed by subparagraph (A) on any transfer shall be equal to the sum of— (i) 20 percent of the fair market value (determined at the time of the transfer) of the interest the ownership or possession of which is transferred, plus (ii) the product of— (I) the highest rate of tax specified in section 11 of such Code, times (II) any gain or income realized by the transferor as a result of the transfer. (C) LIABILITY.—The tax imposed by subparagraph (A) shall be paid by the transferor. (D) RELIEF FROM LIABILITY.—The person (otherwise liable for any tax imposed by subparagraph (A)) shall be relieved of liability for the tax imposed by subparagraph (A) with respect to any transfer if— (i) the transferee is an eligible entity which provides such person, at the time of transfer, a qualifying letter of intent, (ii) in any case where the transferee is not an eligible entity, it is established to the satisfaction of the Secretary of the Treasury, that the transfer of
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