### Question
How is the term applicable percentage defined?


### Answer
The term **applicable percentage** is defined in *26 U.S.C. § 2031* as the following:

> 40 percent reduced (but not below zero) by 2 percentage points for each percentage point (or fraction thereof) by which the value of the qualified conservation easement is less than 30 percent of the value of the land ( [2](#2031_2_target) determined without regard to the value of such easement and reduced by the value of any retained development right (as defined in paragraph (5))

#### Citation:
  - *26 U.S.C. § 2031*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 11-ESTATE TAX > Subchapter A-Estates of Citizens or Residents > PART III-GROSS ESTATE**

