BILL NUMBER: SB 355 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 15, 2013
INTRODUCED BY Senator Beall
FEBRUARY 20, 2013
An act to amend Section Sections 37002,
37005, 37006 , 37012, 37013, 37015, 37016, 37021, 37034,
37038, and 37040 of the Public Resources Code, and to amend
Section Sections 17053.30 and
25630 23630 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 355, as amended, 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
Heritage Preservation Tax Credit Act of 2000, as provided.
This bill would instead require the Natural Resources Agency
to implement the Natural Heritage Preservation Tax Credit Act of 2000
and would also allow for the transfer of the credit allowed
pursuant to the Natural Heritage Preservation Tax Credit
Act of 2000 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 1. Section 37002 of the Public
Resources Code is amended to read:
37002. As used in this division, the following terms have the
following meanings:
(a) "Agency" means the Natural Resources Agency created pursuant
to Chapter 1 (commencing with Section 12800) of Part 2.5 of Division
3 of the Government Code.
(a)
(b) "Approval" or "approval for acceptance" means the
board's agency's approval of the
granting of a tax credit for a donation of property pursuant to the
program.
(b) "Board" means the Wildlife Conservation Board created pursuant
to Article 2 (commencing with Section 1320) of Chapter 4 of Division
2 of the Fish and Game Code.
(c) "Conservation easement" means a conservation easement, as
defined by Section 815.1 of the Civil Code, that is contributed in
perpetuity.
(d) "Department" means any entity created by statute within the
Natural Resources Agency and authorized to hold title to land, or the
Natural Resources Agency.
(e) (1) "Designated nonprofit organization" means a nonprofit
organization qualified under Section 501(c)(3) of Title 26 of the
United States Code that has as a principal purpose the conservation
of land and water resources and that is designated by a local
government or a department to accept property pursuant to this
division in lieu of the local government or a department. In order to
be eligible to receive a donation of property pursuant to this
division, a nonprofit organization shall have experience in land
conservation.
(2) If bond funds are used pursuant to Chapter 7 (commencing with
Section 37030), the designated nonprofit organization shall also meet
the eligibility requirements specified in the relevant provision of
the applicable bond act, for a nonprofit organization.
(f) "Donee" means any of the following:
(1) A department to which a donor has applied to donate property.
(2) A local government that has submitted a joint application with
a department requesting approval of a donation of property to that
local government.
(3) A local government that has submitted an application directly
to the board agency .
(4) A designated nonprofit organization.
(g) "Donor" means a property owner that donates, or submits an
application to donate, property pursuant to the program.
(h) (1) "Local government" means any city, county, city and
county, or any district, as defined in Section 5902 or in Division 26
(commencing with Section 35100), or any joint powers authority made
up of one or more of those entities or those entities and
departments.
(2) If bond funds are used pursuant to Chapter 7 (commencing with
Section 37030), "local government" also includes any other local
governmental entity eligible to receive bond funds pursuant to the
relevant provision of the applicable bond act.
(i) "Program" means the Natural Heritage Preservation Tax Credit
Program authorized by this division.
(j) "Property" means any real property, and any perpetual interest
therein, including land, conservation easements, and land containing
water rights, as well as water rights.
(k) "Secretary" means the Secretary of the Natural Resources
Agency.
SEC. 2. Section 37005 of the Public
Resources Code is amended to read:
37005. The Wildlife Conservation Board
Natural Resources Agency shall implement the program. The
board agency may request staff services
from any department that submits an application and a proposal for a
donation of property to the board agency
.
SECTION 1. SEC. 3. Section 37006 of
the Public Resources Code is amended to read:
37006. (a) (1) Under the program, upon approval by the
board agency , a donor may contribute qualified
property to a donee and receive a tax credit for a portion of the
value of the property, as provided in Sections 17053.30 and 23630 of
the Revenue and Taxation Code.
(2) If the board agency approves a
transfer of the credit pursuant to subdivision (f) of Section
17053.30 or Section 23630 of the Revenue and Taxation
Code , the board agency shall
provide a certificate to the donor evidencing that approval, in a
form satisfactory to the Franchise Tax Board.
(b) The board agency shall adopt
guidelines or regulations to implement the program, including
procedures for applications submitted pursuant to Chapter 4
(commencing with Section 37010) and for the evaluation of properties
proposed to be contributed pursuant to the program. Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code does not apply to the guidelines or regulations
adopted pursuant to this section.
SEC. 4. Section 37012 of the Public
Resources Code is amended to read:
37012. (a) Each donee shall evaluate applications submitted to it
and prepare a plan for the board that sets forth the donee's
priorities for acquisition of property that qualifies under the
program. Consistent with the criteria established for the program,
each donee may use its own priority lists and procedures in
determining which properties or types of properties shall be given
priority.
(b) Each donee or the board agency
may request that the applicant supply further information reasonably
necessary to allow the donee or the board
agency to evaluate the proposed donation.
(c) The department may accept contributions of money from any
taxpayer to pay or reimburse the costs of appraisal, escrow, title,
and other transaction costs associated with the contribution of any
particular property or set of properties, including any environmental
assessments required by the department, and the costs of preparing
any necessary management plan for the property or set of properties.
(d) Prior to acquiring an easement or other interest in land
pursuant to this division, a public hearing shall be held by the
donee, if the donee is a public agency, or by the board
agency if the donee is a designated nonprofit
organization, in the local community. Notice shall be given by the
donee or the board agency to the county
board of supervisors of the affected county, adjacent landowners,
affected water districts, local municipalities, and other interested
parties, as determined by the donee or the board
agency .
(e) When submitting a donation of qualified property to the
board agency for final approval, the
donee shall provide the board agency
with the fair market value of the property proposed for acceptance,
based on appraisals that have been reviewed and approved by the
Department of General Services.
SEC. 5. Section 37013 of the Public
Resources Code is amended to read:
37013. The board agency shall
provide a list to the Joint Legislative Budget Committee and the
Franchise Tax Board, in the form and manner determined by the
Franchise Tax Board, of the names, taxpayer identification numbers,
including taxpayer identification numbers of each partner or
shareholder, as applicable, a legal description of the donated
property, and the total amount of the tax credit approved for each
donation.
SEC. 6. Section 37015 of the Public
Resources Code is amended to read:
37015. The board agency shall
approve only contributions of properties that meet one or more of the
following criteria:
(a) The property will help meet the goals of a habitat
conservation plan, multispecies conservation plan, natural community
conservation plan, or any other similar plan subsequently authorized
by statute that is designed to benefit native species of plants,
including, but not limited to, protecting forests, old growth trees,
or oak woodlands, and animals and development. In proposing and
approving the acceptance of contributed property pursuant to this
subdivision, the recovery benefits for listed species, the habitat
value of the property, the value of the property as a wildlife
corridor, and similar habitat-related considerations shall be the
criteria on which the acceptance is based.
(b) The property will provide corridors or reserves for native
plants and wildlife that will help improve the recovery possibilities
of listed species and increase the chances that the species will
recover sufficiently to be eligible to be removed from the list, or
will help avoid the listing of species pursuant to the California
Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of
Division 3 of the Fish and Game Code) or the federal Endangered
Species Act (16 U.S.C. Sec. 1531 et seq.), or protect wetlands,
waterfowl habitat, or river or stream corridors, or promote the
biological viability of important California species.
(c) The property interest is a perpetual conservation easement
over agricultural land, or is a permanent contribution of
agricultural land, that is threatened by development and is located
in an unincorporated area certified by the secretary to be zoned for
agricultural use by the county. Property accepted pursuant to this
subdivision shall be accepted pursuant to the California Farmland
Conservancy Program Act established by Division 10.2 (commencing with
Section 10200), pursuant to the agricultural conservation program of
the Coastal Conservancy, or pursuant to the Bay Area Conservancy
Program established pursuant to Chapter 4.5 (commencing with Section
31160) of Division 21.
(d) (1) The property interest is a water right, or land with an
associated water right, and the contribution of the property will
help improve the chances of recovery of a listed species, will reduce
the likelihood that any species of fish or other aquatic organism
will be listed pursuant to the California Endangered Species Act
(Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish
and Game Code)) Code) or the federal
Endangered Species Act (16 U.S.C. Sec. 1531 et seq.), will improve
the protection of listed species, or will improve the viability and
health of fish species of economic importance to the state. The donee
receiving the water right, or land with an associated water right,
shall ensure that it shall retain title to the water right, and that
the water shall be used to fulfill the purposes for which the water
right or land associated with a water right is being accepted.
(2) Any contribution of a water right that includes a change in
the point of diversion, place of use, or purpose of use may be made
only if the proposed change will not injure any legal user of the
water involved and is made in accordance with either Chapter 10
(commencing with Section 1700), or Chapter 10.5 (commencing with
Section 1725), of Part 2 of Division 2 of the Water Code.
(e) The property will be used as a park or open space or will
augment public access to or enjoyment of existing regional or local
park, beach, or open-space facilities, or will preserve
archaeological resources.
SEC. 7. Section 37016 of the Public
Resources Code is amended to read:
37016. (a) The board agency shall
grant approval of a proposed contribution of property under the
program only upon a determination that:
(1) (A) The donation of property satisfies the requirements for a
qualified contribution pursuant to Section 170 of Title 26 of the
United States Code. If only a portion (either an undivided fractional
interest in the entire property or one or more discrete parcels) of
a proposed conveyance of property satisfies the requirements of
Section 170 of Title 26 of the United States Code, or if the property
is sold for less than fair market value, only that portion, or the
amount representing the difference between the amount paid by the
donee and the fair market value, shall be eligible for the tax
credit, to the extent permitted by Section 170(h) of Title 26 of the
United States Code. The board agency
may segregate eligible and ineligible interests in property proposed
to be contributed pursuant to this division. The donor shall receive
no other valuable consideration for the donation of property subject
to the tax credit.
(B) For purposes of this division, if the property is proposed to
be donated to satisfy a condition imposed upon the donor by any
lease, permit, license, certificate, or other entitlement for use
issued by one or more public agencies, including, but not limited to,
the mitigation of significant effects on the environment of a
project pursuant to an approved environmental impact report or
mitigated negative declaration required pursuant to the California
Environmental Quality Act (Division 13 (commencing with Section
21000)), that property shall not qualify for the credit provided in
Section 17053.30 or 23630 of the Revenue and Taxation Code.
(2) There has been no release or threatened release of a hazardous
material on the property, unless all of the following occur:
(i) A final remedy in response to the release has been approved by
the Department of Toxic Substances Control pursuant to Chapter 6.5
(commencing with Section 25100) of, Chapter 6.8 (commencing with
Section 25300) of, or Chapter 6.85 (commencing with Section 25396)
of, Division 20 of the Health and Safety Code, or the appropriate
California regional water quality control board pursuant to Chapter
6.7 (commencing with Section 25280) of Division 20 of the Health and
Safety Code.
(ii) The donor or donee have agreed to implement the final remedy
approved pursuant to clause (i).
(iii) The donor or donee have agreed to fund and have made
adequate funding available to pay for the response action, as defined
by Section 25323.3 of the Health and Safety Code.
(b) Notwithstanding paragraph (2) of subdivision (a), a donation
of property containing hazardous materials may be accepted under the
program without satisfying the requirements of paragraph (2) of
subdivision (a) if the donee determines, based on written findings
from the Department of Toxic Substances Control and the California
regional water quality control board with jurisdiction over the
property, that the hazardous materials present will pose no
substantial risk to human health or the environment and no
substantial risk of liability on the donee under the conditions under
which the property will be used. The Department of Toxic Substances
Control and the California regional water quality control board with
jurisdiction over the property shall carry out their normal due
diligence when developing the written findings that will be the basis
for the written determination regarding the presence and risk of
toxic materials on the property by the Department of Toxic Substances
Control or the regional board, whichever is applicable. As used in
this subdivision, "hazardous materials" has the same meaning as
contained in subdivision (d) of Section 25260 of the Health and
Safety Code.
SEC. 8. Section 37021 of the Public
Resources Code is amended to read:
37021. (a) If any property approved for acceptance pursuant to
this division is later transferred by the donee, the use of the
property shall be restricted by deed to the conservation purposes for
which the property was contributed pursuant to the program. If the
board agency determines that the
conservation purposes for which the property was contributed can no
longer be achieved due to significantly changed circumstances beyond
the control of the donee that accepted the property, the proceeds of
the sale shall be used by the donee that accepted the property to
acquire land in California of equal or greater value and comparable
public resources values, as determined by the board
agency . The land acquired shall meet the
criteria of Section 37015. Nothing in this division prohibits the
transfer of donated property to a nonprofit organization that is
qualified to manage the property for the purposes intended by this
division, if the terms of this section are met. Any local government
or nonprofit organization seeking to sell land pursuant to this
subdivision shall first obtain the approval of the board
agency .
(b) Other than as provided by subdivision (a), property approved
for acceptance pursuant to this division shall be used only for
purposes consistent with Section 37015.
(c) (1) If any unauthorized use is made of the property after the
property is donated to a local government or nonprofit organization
pursuant to this program, the local government or nonprofit
organization shall seek to terminate the unauthorized use and restore
the conservation benefits for which the property was contributed. If
the board agency determines that the
unauthorized use has not been terminated and the conservation
benefits fully restored within a reasonable period of time, the fee
title owner of the property shall pay to the state the greater of the
following:
(A) The fair market value of the property based on appraisals when
accepted by the board agency .
(B) The fair market value of the property based on appraisals at
the time of and based on the unauthorized use of the property.
(2) The department that is the donee or the board
agency may seek injunctive relief to prevent the
unauthorized use of the property, or may assume ownership or
management of the property to assure that it is used in the manner
originally authorized.
(d) The board agency shall develop a
process to monitor the uses of any land that a local government or
nonprofit organization receives pursuant to this division in order to
ensure those uses are in conformance with the purposes for which the
property is accepted.
SEC. 9. Section 37034 of the Public
Resources Code is amended to read:
37034. (a) (1) If a department determines that property is
available for acquisition by donation, and that the acquisition of
the property would comply with the requirements of an applicable bond
provision specified in subdivision (c) of Section 37032 and any
applicable guidelines developed for that bond provision by the
administering agency, and the department believes the acquisition of
the property would comply with the requirements of this division, the
department may request the prospective donor of the property to
submit an application pursuant to Section 37010. If the prospective
donor agrees to submit that application, the department may apply for
approval of the donation pursuant to the requirements of this
division.
(2) If a local government determines that property is available
for acquisition by donation, and that the acquisition of the property
would comply with the requirements of an applicable bond provision
specified in subdivision (c) of Section 37032 and any applicable
guidelines developed for that bond provision by the administering
agency, and the local government believes that the acquisition of the
property would comply with the requirements of this division, the
local government may request the department that allocated to it the
relevant bond funds to determine whether it agrees with the local
government's determinations and beliefs made pursuant to this
paragraph. If the department agrees with the local government and
gives its approval for the acquisition with bond funds that it has
allocated to the local government, the local government may request
the prospective donor of the property to submit an application
pursuant to Section 37010. If the prospective donor agrees to submit
the application, the local government may apply for approval of the
donation pursuant to the requirements of this division.
(3) In addition to the requirements of Section 37011, the
application shall include, and shall not be accepted if it does not
include, a signed authorization by the donor, in a form and manner
mutually agreeable to the board agency
and the Franchise Tax Board, for the disclosure of the information
necessary to make the payment as required by subdivision (b). For
purposes of subdivision (b) of Section 1798.24 of the Civil Code, the
signed authorization shall be the donor's voluntary consent to the
disclosure of the information.
(b) (1) If the board agency gives
approval, the department or local government may acquire the property
pursuant to this division. Through the process outlined in this
section, the department shall reimburse the General Fund for the tax
credit claimed pursuant to this chapter under Section 17053.30 or
23630 of the Revenue and Taxation Code by transferring bond funds
identified under subdivision (c) of Section 37032 to the Natural
Heritage Preservation Tax Credit Reimbursement Account, on the basis
of information provided to the department under Section 37040
regarding credit claimed for a qualified contribution under Section
17053.30 or 23630 of the Revenue and Taxation Code in that tax year.
(2) If a local government applies directly to the board
agency for acceptance of a qualified donation,
the board agency may provide
conditional approval for the local government to acquire the property
pursuant to this division. Through the process outlined in this
section, the local government shall reimburse the General Fund for
the tax credit claimed pursuant to this chapter under Section
17053.30 or 23630 of the Revenue and Taxation Code by transferring
funds in the full amount of the approved tax credit to the board for
deposit into the Natural Heritage Preservation Tax Credit
Reimbursement Account.
(3) (A) Upon approval by the board agency
, and prior to the time the department, local government, or
designated nonprofit organization receives the property, the
department shall encumber bond funds identified under subdivision (c)
of Section 37032 in an amount necessary to pay for the tax credit as
provided in Section 17053.30 or 23630, as applicable, of the Revenue
and Taxation Code.
(B) If a local government applies directly to the board
agency for acceptance of a qualified donation,
and the board agency provides
conditional approval of the qualified donation, the local government
shall have 60 days to transfer to the board
agency the full amount of funds necessary to reimburse the
General Fund. Upon receipt of the funds necessary to reimburse the
General Fund, the board agency shall
provide the donor and the local government with a notice of final
approval of the tax credit. A tax credit is not approved until such
time as the donor and local government receive a final notification
from the board agency that sufficient
funds have been received to reimburse the General Fund for the loss
of revenue associated with the tax credit.
(C) The acquisition agreement or any other document that clearly
delineates the commitment pursuant to this division shall be the only
documentation required for the department to encumber the bond funds
as required by this paragraph.
(D) Except as prohibited by the relevant bond act, notwithstanding
Section 13340 of the Government Code or any other provision of law,
the encumbrance shall be available without regard to fiscal years to
allow payments to the Natural Heritage Preservation Tax Credit
Reimbursement Account for the tax credit due the donor of the
property under Section 17053.30 or 23630, as applicable, of the
Revenue and Taxation Code.
(4) The Franchise Tax Board shall provide the board
agency information pursuant to subdivision (a)
of Section 19560 of the Revenue and Taxation Code on tax credits
claimed. The information shall include the tax year for which the
credit was claimed. The board agency
shall provide the information required by Section 37040 to the
relevant department. Upon notification that a qualified tax credit
has been claimed, the department, pursuant to paragraph (1), shall
transfer bond funds in the amount of the tax credit for that tax year
to the Natural Heritage Preservation Tax Credit Reimbursement
Account within 60 days of receipt of the notification. The department
shall notify the board agency of this
transfer.
(5) The board agency shall forward
the information it receives pursuant to paragraph (4) to the
Controller and the Department of Finance, which shall use the
information for the purpose of attributing the budgetary impact of
the credit and bond fund transfer to the appropriate tax and fiscal
year.
SEC. 10. Section 37038 of the Public
Resources Code is amended to read:
37038. If the board agency is the
department that receives moneys pursuant to any of the bond
provisions listed in subdivision (c) of Section 37032 and the
board agency wishes to use those bond
funds to acquire property pursuant to this division using those bond
funds, the board agency shall make
separate determinations regarding whether the acquisition of that
property would comply with the purpose of the applicable bond
provision and any applicable guidelines developed for that bond
provision by the administering agency, and whether the acquisition
would comply with the requirements of this division.
SEC. 11. Section 37040 of the Public
Resources Code is amended to read:
37040. (a) The board agency shall
notify the Controller, the Treasurer, and the relevant department of
the information listed in subdivision (b) after the board
agency receives notification from the Franchise
Tax Board pursuant to Section 19560 of the Revenue and Taxation Code
that a person is claiming a tax credit under this chapter.
(b) The board agency shall provide
all of the following information:
(1) The bond fund and specific provision of the bond act under
which the credit is being claimed.
(2) The project name, appropriation under which the credit was
encumbered, and, if applicable, the related local government.
(3) The department that will transfer the appropriate bond funds
to the Natural Heritage Preservation Tax Credit Reimbursement
Account.
(4) The amount of the tax credit for that tax year.
SEC. 2. SEC. 12. Section 17053.30 of
the Revenue and Taxation Code is amended to read:
17053.30. (a) There shall be allowed as a credit against the "net
tax," as defined in Section 17039, an amount equal to 55 percent of
the fair market value of any qualified contribution made on or after
January 1, 2000, and not later than June 30, 2008, and on or after
January 1, 2010, and not later than June 30, 2015, by the taxpayer
during the taxable year to the state, any local government, or any
designated nonprofit organization, pursuant to Division 28
(commencing with Section 37000) of the Public Resources Code.
(b)
For purposes of this section, "qualified contribution" means a
contribution of property, as defined in Section 37002 of the Public
Resources Code, that has been approved for acceptance by the
Wildlife Conservation Board Natural Resources Agency
pursuant to Division 28 (commencing with Section 37000) of the
Public Resources Code.
(c) In the case of any pass-thru entity, the fair market value of
any qualified contribution approved for acceptance under Division 28
(commencing with Section 37000) of the Public Resources Code shall be
passed through to the partners or shareholders of the pass-thru
entity in accordance with their interest in the pass-thru entity as
of the date of the qualified contribution. For purposes of this
subdivision, the term "pass-thru entity" means any partnership, "S"
corporation, or limited liability company treated as a partnership.
(d) If the credit allowed by this section exceeds the "net tax,"
the excess may be carried over to reduce the "net tax" in the
following year, and the succeeding seven years if necessary, until
the credit is exhausted.
(e) This credit shall be in lieu of any other credit or deduction
which the taxpayer may otherwise claim pursuant to this part with
respect to the property or any interest therein that is contributed.
(f) (1) Notwithstanding any other law, for each taxable year
beginning on or after January 1, 2013, a taxpayer may transfer any
credit , in whole or in part, allowed under this section
to an unrelated party.
(2) The taxpayer shall report to the Wildlife Conservation Board
prior to the transfer of the credit, in the form and manner specified
by the Wildlife Conservation Board, all required information
regarding the transfer of the credit, including the social security
or other taxpayer identification number of the unrelated party to
whom the credit has been transferred and the face amount of the
credit transferred, for the approval of the Wildlife Conservation
Board.
(3) Upon approval of the transfer, the Wildlife Conservation Board
shall provide a certificate to the taxpayer evidencing the approval,
in the form and manner specified by the Franchise Tax Board, that
shall include all required information regarding the credit.
(2) At the time the project is under consideration by a department
or agency, the donor shall indicate to the department or the Natural
Resources Agency, in the form and manner specified by the department
or the Natural Resources Agency, the donor's interest in
transferring the credit, in whole or in part, to an unrelated party.
(3) On and after January 1, 2013, the Natural Resources Agency
shall maintain a list of parties that are interested in acquiring a
tax credit pursuant to this subdivision. The Natural Resources Agency
shall collect all required information necessary for the transfer of
the credit, including the social security or other taxpayer
identification number of the unrelated party to whom a credit could
be transferred and the amount of the tax credit the party is
interested in acquiring.
(4) As part of the approval process, the Natural Resources Agency
shall match projects with donors interested in transferring credits
with parties interested in acquiring a tax credit. All parties shall
agree to any proposed transfer of a tax credit.
(5) The Natural Resources agency shall establish procedures as
needed, including, but not limited to, the use of an escrow account,
for the tax credit to be purchased by the acquiring entity, the donor
to receive the payment for the value of the transferred tax credit
at the time of project closing, and for a certificate evidencing the
tax credit to be given to the unrelated party. The Natural Resources
Agency shall issue a certificate, in the form and manner specified by
the Franchise Tax Board, that shall include all required information
regarding the credit.
(6) For purposes of this subdivision, "department" has the same
meaning as defined in subdivision (d) of Section 37002 of the Public
Resources Code.
SEC. 3. SEC. 13. Section 23630 of
the Revenue and Taxation Code is amended to read:
23630. (a) There shall be allowed as a credit against the "tax,"
as defined in Section 23036, an amount equal to 55 percent of the
fair market value of any qualified contribution made on or after
January 1, 2000, and not later than June 30, 2008, and on or after
January 1, 2010, and not later than June 30, 2015, by the taxpayer
during the taxable year to the state, any local government, or any
designated nonprofit organization, pursuant to Division 28
(commencing with Section 37000) of the Public Resources Code.
(b) For purposes of this section, "qualified contribution" means a
contribution of property, as defined in Section 37002 of the Public
Resources Code, that has been approved for acceptance by the
Wildlife Conservation Board Natural Resources Agency
pursuant to Division 28 (commencing with Section 37000) of the
Public Resources Code.
(c) In the case of any pass-thru entity, the fair market value of
any qualified contribution approved for acceptance under Division 28
(commencing with Section 37000) of the Public Resources Code shall be
passed through to the partners or shareholders of the pass-thru
entity in accordance with their interest in the pass-thru entity as
of the date of the qualified contribution. For purposes of this
subdivision, the term "pass-thru entity" means any partnership or "S"
corporation.
(d) If the credit allowed by this section exceeds the "tax," the
excess may be carried over to reduce the "tax" in the following year,
and the succeeding seven years if necessary, until the credit is
exhausted.
(e) This credit shall be in lieu of any other credit or deduction
that the taxpayer may otherwise claim pursuant to this part with
respect to the property or any interest therein that is contributed.
(f) (1) Notwithstanding any other law, for each taxable year
beginning on or after January 1, 2013, a taxpayer may transfer any
credit , in whole or in part, allowed under this section
to an unrelated party.
(2) The taxpayer shall report to the Wildlife Conservation Board
prior to the transfer of the credit, in the form and manner specified
by the Wildlife Conservation Board, all required information
regarding the transfer of the credit, including the social security
or other taxpayer identification number of the unrelated party to
whom the credit has been transferred and the face amount of the
credit transferred, for the approval of the Wildlife Conservation
Board.
(3) Upon approval of the transfer, the Wildlife Conservation Board
shall provide a certificate to the taxpayer evidencing the approval,
in the form and manner specified by the Franchise Tax Board, that
shall include all required information regarding the credit.
(2) At the time the project is under consideration by a department
or agency, the donor shall indicate to the department or the Natural
Resources Agency, in the form and manner specified by the department
or the Natural Resources Agency, the donor's interest in
transferring the credit, in whole or in part, to an unrelated party.
(3) On and after January 1, 2013, the Natural Resources Agency
shall maintain a list of parties that are interested in acquiring a
tax credit pursuant to this subdivision. The Natural Resources Agency
shall collect all required information necessary for the transfer of
the credit, including the social security or other taxpayer
identification number of the unrelated party to whom a credit could
be transferred and the amount of the tax credit the party is
interested in acquiring.
(4) As part of the approval process, the Natural Resources Agency
shall match projects with donors interested in transferring credits
with parties interested in acquiring a tax credit. All parties shall
agree to any proposed transfer of a tax credit.
(5) The Natural Resources agency shall establish procedures as
needed, including, but not limited to, the use of an escrow account,
for the tax credit to be purchased by the acquiring entity, the donor
to receive the payment for the value of the transferred tax credit
at the time of project closing, and for a certificate evidencing the
tax credit to be given to the unrelated party. The Natural Resources
Agency shall issue a certificate, in the form and manner specified by
the Franchise Tax Board, that shall include all required information
regarding the credit.
(6) For purposes of this subdivision, "department" has the same
meaning as defined in subdivision (d) of Section 37002 of the Public
Resources Code.
SEC. 4. SEC. 14. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.