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 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 17053.30 of the Revenue and Taxation
2Code is amended to read:
(a) There shall be allowed as a credit against the
4“net tax,” as defined in Section 17039, an amount equal to 55
5percent of the fair market value of any qualified contribution made
6on or after January 1, 2000, and not later than June 30, 2008, and
7on or after January 1, 2010, and not later than June 30, 2015, by
8the taxpayer during the taxable year to the state, any local
9government, or any designated nonprofit organization, pursuant
10to Division 28 (commencing with Section 37000) of the Public
11Resources Code.
12(b) For purposes of this section, “qualified contribution” means
13a contribution of property, as defined in Section 37002 of the Public
14Resources Code, that has been approved
for acceptance by the
15Wildlife Conservation Board pursuant to Division 28 (commencing
16with Section 37000) of the Public Resources Code.
17(c) In the case of any pass-thru entity, the fair market value of
18any qualified contribution approved for acceptance under Division
1928 (commencing with Section 37000) of the Public Resources
20Code shall be passed through to the partners or shareholders of
21the pass-thru entity in accordance with their interest in the pass-thru
22entity as of the date of the qualified contribution. For purposes of
23this subdivision, the term “pass-thru entity” means any partnership,
24“S” corporation, or limited liability company treated as a
25partnership.
26(d) If the credit allowed by this section exceeds the “net tax,”
27the excess may be carried over to reduce
the “net tax” in the
28following year, and the succeeding seven years if necessary, until
29the credit is exhausted.
30(e) This credit shall be in lieu of any other credit or deduction
31which the taxpayer may otherwise claim pursuant to this part with
32respect to the property or any interest therein that is contributed.
33(f) (1) Notwithstanding any other law, for each taxable year
34beginning on or after January 1, 2013, a taxpayer may transfer any
35credit, in whole or in part, allowed under this section to an
36unrelated party.
37(2) At the time the project is under consideration by a
38department or the Wildlife Conservation Board, the donor shall
P3 1indicate to the department or the Wildlife Conservation Board,
in
2the form and manner specified by the department or the Wildlife
3Conservation Board, the donor’s interest in transferring the credit,
4in whole or in part, to an unrelated party.
5(3) On and after January 1, 2013, the
Wildlife Conservation
6Board shall maintain a list of parties that are interested in acquiring
7a tax credit pursuant to this subdivision. The Wildlife Conservation
8Board shall collect all required information necessary for the
9transfer of the credit, including the social security or other taxpayer
10identification number of the unrelated party to whom a credit could
11be transferred and the amount of the tax credit the party is
12interested in acquiring.
13(4) As part of the approval process, the
Wildlife Conservation
14Board shall match projects with donors interested in transferring
15credits with parties interested in acquiring a tax credit. All parties
16shall agree to any proposed transfer of a tax credit.
17(5) The Wildlife Conservation Board shall establish procedures
18as needed, including, but not limited to, the use of an escrow
19account, for the tax credit to be purchased by the acquiring entity,
20the donor to receive the payment for the value of the transferred
21tax credit at the time of project closing, and for a certificate
22evidencing the tax credit to be given to the unrelated party. The
23Wildlife Conservation Board shall issue a certificate, in the form
24and manner specified by the Franchise Tax Board, that shall include
25all required information regarding the credit.
26(6) For purposes of this subdivision, “department” has the same
27meaning as defined in subdivision (d) of Section 37002 of the
28Public Resources Code.
29(7) The Wildlife Conservation Board shall not approve a transfer
30of a credit under this section if the consideration received by the
31taxpayer in exchange for the credit is less than 90 percent of the
32value of the credit to be transferred.
Section 23630 of the Revenue and Taxation Code is
34amended to read:
(a) There shall be allowed as a credit against the “tax,”
36as defined in Section 23036, an amount equal to 55 percent of the
37fair market value of any qualified contribution made on or after
38January 1, 2000, and not later than June 30, 2008, and on or after
39January 1, 2010, and not later than June 30, 2015, by the taxpayer
40during the taxable year to the state, any local government, or any
P4 1designated nonprofit organization, pursuant to Division 28
2(commencing with Section 37000) of the Public Resources Code.
3(b) For purposes of this section, “qualified contribution” means
4a contribution of property, as defined in Section 37002 of the Public
5Resources Code, that has been approved for
acceptance by the
6Wildlife Conservation Board pursuant to Division 28 (commencing
7with Section 37000) of the Public Resources Code.
8(c) In the case of any pass-thru entity, the fair market value of
9any qualified contribution approved for acceptance under Division
1028 (commencing with Section 37000) of the Public Resources
11Code shall be passed through to the partners or shareholders of
12the pass-thru entity in accordance with their interest in the pass-thru
13entity as of the date of the qualified contribution. For purposes of
14this subdivision, the term “pass-thru entity” means any partnership
15or “S” corporation.
16(d) If the credit allowed by this section exceeds the “tax,” the
17excess may be carried over to reduce the “tax” in the following
18year, and the succeeding seven years if
necessary, until the credit
19is exhausted.
20(e) This credit shall be in lieu of any other credit or deduction
21that the taxpayer may otherwise claim pursuant to this part with
22respect to the property or any interest therein that is contributed.
23(f) (1) Notwithstanding any other law, for each taxable year
24beginning on or after January 1, 2013, a taxpayer may transfer any
25credit, in whole or in part, allowed under this section to an
26unrelated party.
27(2) At the time the project is under consideration by a
28department or the Wildlife Conservation Board, the donor shall
29indicate to the department or the Wildlife Conservation Board, in
30the form and manner specified by the department or the Wildlife
31Conservation
Board, the donor’s interest in transferring the credit,
32in whole or in part, to an unrelated party.
33(3) On and after January 1, 2013, the
Wildlife Conservation
34Board shall maintain a list of parties that are interested in acquiring
35a tax credit pursuant to this subdivision. The Wildlife Conservation
36Board shall collect all required information necessary for the
37transfer of the credit, including the social security or other taxpayer
38identification number of the unrelated party to whom a credit could
39be transferred and the amount of the tax credit the party is
40interested in acquiring.
P5 1(4) As part of the approval process, the
Wildlife Conservation
2Board shall match projects with donors interested in transferring
3credits with parties interested in acquiring a tax credit. All parties
4shall agree to any proposed transfer of a tax credit.
5(5) The Wildlife Conservation Board shall establish procedures
6as needed, including, but not limited to, the use of an escrow
7account, for the tax credit to be purchased by the acquiring entity,
8the donor to receive the payment for the value of the transferred
9tax credit at the time of project closing, and for a certificate
10evidencing the tax credit to be given to the unrelated party. The
11Wildlife Conservation Board shall issue a certificate, in the form
12and manner specified by the Franchise Tax Board, that shall include
13all required information regarding the credit.
14(6) For purposes of this subdivision, “department” has the same
15meaning as defined in subdivision (d) of Section 37002 of the
16Public Resources Code.
17(7) The Wildlife Conservation Board shall not approve a transfer
18of a credit under this section if the consideration received by the
19taxpayer in exchange for the credit is less than 90 percent of the
20value of the credit to be transferred.
This act provides for a tax levy within the meaning of
22Article IV of the Constitution and shall go into immediate effect.
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