SB 355, as introduced, Beall. Conservation: tax credits.
The Natural Heritage Preservation Tax Credit Act of 2000 requires the Wildlife Conservation Board to implement a program under which property, as defined, may be contributed to the state, any local government, as defined, or to any nonprofit organization designated by a local government, based on specified criteria, in order to provide for the protection of wildlife habitat, open space, and agricultural lands.
The Personal Income Tax Law and the Corporation Tax Law allow a credit against the taxes imposed by those laws in the amount equal to 55% of the fair market value of any qualified contribution, as defined, contributed during the taxable year pursuant to the Natural Preservation Tax Credit Act of 2000, as provided.
This bill would allow for the transfer of the credit allowed pursuant to the Natural Preservation Tax Credit Act by the taxpayer to an unrelated party, as provided.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 37006 of the Public Resources Code is
2amended to read:
(a) begin insert(1)end insertbegin insert end insert Under the program, upon approval by the
4 board, a donor may contribute qualified property to a donee and
5receive a tax credit for a portion of the value of the property, as
6provided in Sections 17053.30 and 23630 of the Revenue and
7Taxation Code.
8(2) If the board approves a transfer of the credit pursuant to
9subdivision (f) of Section 17053.30 or 23630, the board shall
10provide a certificate to the donor
evidencing that approval, in a
11form satisfactory to the Franchise Tax Board.
12(b) The board shall adopt guidelines or regulations to implement
13the program, including procedures for applications submitted
14pursuant to Chapter 4 (commencing with Section 37010) and for
15the evaluation of properties proposed to be contributed pursuant
16to the program. Chapter 3.5 (commencing with Section 11340) of
17Part 1 of Division 3 of Title 2 of the Government Code does not
18apply to the guidelines or regulations adopted pursuant to this
19section.
Section 17053.30 of the Revenue and Taxation Code
21 is amended to read:
(a) There shall be allowed as a credit against the
23“net tax,” as defined in Section 17039, an amount equal to 55
24percent of the fair market value of any qualified contribution made
25on or after January 1, 2000, and not later than June 30, 2008, and
26on or after January 1, 2010, and not later than June 30, 2015, by
27the taxpayer during the taxable year to the state, any local
28government, or any designated nonprofit organization, pursuant
29to Division 28 (commencing with Section 37000) of the Public
30Resources Code.
31(b) For purposes of this section, “qualified contribution” means
32a contribution of property, as defined in Section 37002 of the Public
33Resources Code, that has been approved for acceptance by the
34Wildlife Conservation Board pursuant to Division 28
(commencing
35with Section 37000) of the Public Resources Code.
36(c) In the case of any passthrough entity, the fair market value
37of any qualified contribution approved for acceptance under
38Division 28 (commencing with Section 37000) of the Public
P3 1Resources Code shall be passed through to the partners or
2shareholders of the passthrough entity in accordance with their
3interest in the passthrough entity as of the date of the qualified
4contribution. For purposes of this subdivision, the term
5“passthrough entity” means any partnership, “S” corporation, or
6limited liability company treated as a partnership.
7(d) If the credit allowed by this section exceeds the “net tax,”
8the excess may be carried over to reduce the “net tax” in the
9following year, and the succeeding seven years if necessary, until
10the credit is exhausted.
11(e) This credit shall be in lieu of any other credit or deduction
12which the taxpayer may otherwise claim pursuant to this part with
13respect to the property or any interest therein that is contributed.
14(f) (1) Notwithstanding any other law, for each taxable year
15beginning on or after January 1, 2013, a taxpayer may transfer
16any credit allowed under this section to an unrelated party.
17(2) The taxpayer shall report to the Wildlife Conservation Board
18prior to the transfer of the credit, in the form and manner specified
19by the Wildlife Conservation Board, all required information
20regarding the transfer of the credit, including the social security
21or other taxpayer
identification number of the unrelated party to
22whom the credit has been transferred and the face amount of the
23credit transferred, for the approval of the Wildlife Conservation
24Board.
25(3) Upon approval of the transfer, the Wildlife Conservation
26Board shall provide a certificate to the taxpayer evidencing the
27approval, in the form and manner specified by the Franchise Tax
28Board, that shall include all required information regarding the
29credit.
Section 23630 of the Revenue and Taxation Code is
31amended to read:
(a) There shall be allowed as a credit against the “tax,”
33as defined in Section 23036, an amount equal to 55 percent of the
34fair market value of any qualified contribution made on or after
35January 1, 2000, and not later than June 30, 2008, and on or after
36January 1, 2010, and not later than June 30, 2015, by the taxpayer
37during the taxable year to the state, any local government, or any
38designated nonprofit organization, pursuant to Division 28
39(commencing with Section 37000) of the Public Resources Code.
P4 1(b) For purposes of this section, “qualified contribution” means
2a contribution of property, as defined in Section 37002 of the Public
3Resources Code, that has been approved for acceptance by the
4Wildlife Conservation Board pursuant to Division 28 (commencing
5with
Section 37000) of the Public Resources Code.
6(c) In the case of any passthrough entity, the fair market value
7of any qualified contribution approved for acceptance under
8Division 28 (commencing with Section 37000) of the Public
9Resources Code shall be passed through to the partners or
10shareholders of the passthrough entity in accordance with their
11interest in the passthrough entity as of the date of the qualified
12contribution. For purposes of this subdivision, the term
13 “passthrough entity” means any partnership or “S” corporation.
14(d) If the credit allowed by this section exceeds the “tax,” the
15excess may be carried over to reduce the “tax” in the following
16year, and the succeeding seven years if necessary, until the credit
17is exhausted.
18(e) This credit shall be in lieu of any other credit or deduction
19that the
taxpayer may otherwise claim pursuant to this part with
20respect to the property or any interest therein that is contributed.
21(f) (1) Notwithstanding any other law, for each taxable year
22beginning on or after January 1, 2013, a taxpayer may transfer
23any credit allowed under this section to an unrelated party.
24(2) The taxpayer shall report to the Wildlife Conservation Board
25prior to the transfer of the credit, in the form and manner specified
26by the Wildlife Conservation Board, all required information
27regarding the transfer of the credit, including the social security
28or other taxpayer identification number of the unrelated party to
29whom the credit has been transferred and
the face amount of the
30credit transferred, for the approval of the Wildlife Conservation
31Board.
32(3) Upon approval of the transfer, the Wildlife Conservation
33Board shall provide a certificate to the taxpayer evidencing the
34approval, in the form and manner specified by the Franchise Tax
35Board, that shall include all required information regarding the
36credit.
This act provides for a tax levy within the meaning of
38Article IV of the Constitution and shall go into immediate effect.
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