Pond Push

New House Fishing Bill A Potential Catalyst

Wednesday, November 18, 2009

Ray Scott, long a champion of conservation and fishable water, encouraged Rep. Bobby Bright to introduce a bill to stimulate pond-building.

The sport of fishing has faced considerable difficulties over the past year   an erosion of sponsor support on the competitive side, rising license costs, a stagnant boat and motor market, a shrinking outdoor media and much more.

Which is a why a recent fishing-related bill introduced to the U.S. House of Representatives couldn't have come at a better time.

More news on this and other items at Northeast Bass

H.R. 3622, or the Ponds and Water-Based Conservation Act of 2009, sponsored by Rep. Bobby Bright (D-Ala.), seems simple in its intent. But the potential ramifications could help boost a sport and industry badly in need of resuscitation. At the same time, it could help ensure the future by hooking a whole new generation on the joys of fishing right out their own backdoors.

The premise is to offer a 50% tax credit to landowners who build a pond at least a half-acre in size but less than 10 acres. The result could be an explosion of fishable water in towns and neighborhoods, as well as in the countryside.

Ray's Fight

The bill itself is the brainchild of BASS founder Ray Scott, who's decided to put his weight behind it and call to action all those with a stake in the future of angling.

Scott, as BASS founder, has long stayed plugged into national policy. It was Scott who helped push Wallop-Breaux through the House and Senate, despite opposition even from within the sport.

He struck upon the idea to encourage pond-building several years ago, but not until more recently did he take the idea to Rep. Bright.

"It's fuzzy, but I can remember many years ago when there was something for people who built lakes and ponds, but I think it was agricultural in nature," Scott said. "But over the last several years I got to thinking, Why not encourage people to capture water? And today, with this economy, we have people standing on street corners like the 1930s looking for anything to do. Why in the heck can't we put people to work building ponds?

"The landowner takes advantage of the tax credit and hires a digger, the digger hires the guy on the street corner, both pay taxes on what they make, property values increase, and there's a new place to fish."

Bright credited Scott with the idea for the legislation and also addressed the economic activity it could stimulate.

"The idea for the legislation came from a desire to both stimulate job growth and an interest in water conservation," Bright told BassFan. "I felt that these things were not mutually exclusive and, if done correctly, could make strong legislation. Ray Scott has a great deal of knowledge on the subject and as a constituent in the 2nd District of Alabama, his input was valuable and welcome."

And in Scott's estimation, significant economic activity would come back to the fishing industry.

"If you build a fish pond or lake on your property, after you fill it and stock it, the first thing you're going to do is get in your truck and drive as fast as you can to Bass Pro Shops and spend $300 or $400 on rods, reels, lures and tackle," Scott said. "And 10% of all that money will go to Wallop-Breaux and back to the states for launch ramps, stocking   you name it."

And of course, kids need places to fish that are safe and reachable by bike. Anyone who grew up near a fishing pond can attest to how crucial a single pond can be in developing a lifelong passion for fishing.

The number of ponds that could potentially be constructed in an average-size town, given the tax credit, is staggering.

Rep. Bright notes the Ponds and Water-Based Conservation Act of 2009 might become a provision in a larger job-creation/tax-break piece of legislation.

What Comes Next?

The bill has currently been referred to the House Ways & Means committee. Bright is the bill's sole sponsor. In order to move forward, the bill must be considered by the committee, pass out of the committee, and then proceed to the House floor for a final vote. It would then have to be passed by the Senate and signed by the president in order to become law.

Bright doesn't anticipate the bill will ride by itself into law. Instead, he described it more as a "starting point" for an issue about which he cares deeply. "I don't expect the bill to be passed verbatim, but I hope the concept gets incorporated in other legislation, (such as) a provision in job-creation/tax-break legislation," he said.

"Actually, the first bill I sponsored as a member of Congress allowed small businesses to deduct from this year's taxes an additional amount of capital expenses. Though I didn't support the American Recovery and Reinvestment Act, my provision was included in the final bill. (This bill) is simply one more avenue to promote conservation and job creation."

Scott sees a long road ahead for the bill, because "nothing in Washington happens quickly," but that doesn't mean it won't come to pass.

"I'm the guy who didn't give up on Wallop Breaux   I worked my butt off for 3 years for it   and you can't give up when it comes to these things," Scott said. "When that bill started moving, it really took off."

And both Scott and Bright urged BassFans to get involved.

The best place to start, they said, is to contact your representatives in Congress. Ask them to support the Ponds and Water-Based Conservation Act of 2009 and the concept of promoting job creation through water-based conservation.

They also recommend BassFans contact their state fishery agencies and let them know about the legislation and that you support it, bring a copy of the bill to your club meetings, or distribute them at your next tournament. If your child's school has an ecology or conservation club, let them know about it. Send a note to your local newspaper letting them know about the bill.

"Folks in Congress get hit with beautiful ideas every day, so we need to get in on this and kick and scream and get it done," Scott said. "The fishery departments in the states need to push this thing, and I plan to do everything in the world I need to. We all need to get off our butts and get excited and stay that way until we get it passed."

Notable

> Scott, of course, built and maintains some of the most fabled ponds in the history of fishing. He recently opened them to groups for luxury fishing escapes and corporate retreats. His first group came in last weekend. In one morning, they boated a 10-06 and 7-07. For information on rates, or to book, visit RayScottOutdoors.com or call (800) 518-7222.

> Scott's continually surprised at how few people understand the size of a 1-acre pond. "When I ask people how many acres are in a football field, nine of 10 miss it," he said. "I had one guy guess 10 acres. A football field is only 1 acre."

Complete Text Of H.R. 3622, Ponds and Water-Based Conservation Act of 2009

H. R. 3622

To amend the Internal Revenue Code of 1986 to allow a credit for the construction of pond establishments for the purposes of non-commercial recreational fishing and conservation of water-based wildlife habitats.

IN THE HOUSE OF REPRESENTATIVES

September 22, 2009

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

A BILL

To amend the Internal Revenue Code of 1986 to allow a credit for the construction of pond establishments for the purposes of non-commercial recreational fishing and conservation of water-based wildlife habitats.

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  Ponds and Water-Based Conservation Act of 2009 .

SEC. 2. POND CONSTRUCTION CREDIT.

(a) Pond Construction Credit- Subpart A 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:

 SEC. 25E. POND CONSTRUCTION CREDIT.

 (a) Allowance of Credit   In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of qualified pond construction expenditures.

 (b) Limitations   The amount allowed as a credit under subsection (a) for a taxable year shall not exceed $50,000.

 (c) Qualified Pond Construction Expenditures   For purposes of this section--

 (1) IN GENERAL   The term  qualified pond construction expenditures  means amounts paid or incurred to construct a body of water larger than one-half acre and smaller than 10 acres that serves to promote stormwater management and conservation or foster expansion of water-based habitat for wildlife or fish.

 (2) LABOR COSTS   For purposes of paragraph (1), expenditures for labor costs properly allocable to the onsite construction of such body of water shall be taken into account.

 (3) EXCEPTION FOR COMMERCIAL USES   Such term does not include any amount paid or incurred with respect to commercial fishing.

 (d) Recapture of Credit-

 (1) IN GENERAL- The Secretary shall provide for the recapture of the credit allowed under this section in any case in which, before the close of the recapture period, the land with respect to which the qualified pond construction expenditures were paid or incurred is disposed of or otherwise ceases to sustain water-based wildlife or fish.

 (2) EXCEPTIONS-

 (A) DEATH OF TAXPAYER- Paragraph (1) shall not apply to any taxable year ending after the date of the taxpayer s death.

 (B) INVOLUNTARY CONVERSION- Paragraph (1) shall not apply in the case of a property which is compulsorily or involuntarily converted (within the meaning of section 1033(a)).

 (C) TRANSFERS BETWEEN SPOUSES OR INCIDENT TO DIVORCE- In the case of a transfer of a property to which section 1041(a) applies--

 (i) paragraph (1) shall not apply to such transfer, and

 (ii) in the case of taxable years ending after such transfer, paragraph (1) shall apply to the transferee in the same manner as if such transferee were the transferor (and shall not apply to the transferor).

 (3) RECAPTURE PERIOD- For purposes of paragraph (1), the recapture period is the 10-taxable year period beginning with the taxable year after the taxable year for which a credit is allowed under subsection (a).

 (e) Certification-

 (1) YEAR OF CONSTRUCTION- No amount shall be treated as a qualified pond construction expenditure unless the taxpayer certifies that the body of water constructed pursuant to such expenditures meets the requirements of subsection (c)(1).

 (2) RECAPTURE- Recapture shall be required under subsection (d) for any year in the recapture period unless the taxpayer certifies that the taxpayer is in compliance with subsection (d).

 (3) CERTIFICATION REQUIREMENTS- A certification under this subsection shall be in such form and meet such requirements as the Secretary may require. .

(b) Conforming Amendment- The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item:

 Sec. 25E. Pond construction credit. .

(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2009.