BILL NUMBER: SB 355 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 7, 2013
AMENDED IN SENATE APRIL 25, 2013
AMENDED IN SENATE APRIL 15, 2013
INTRODUCED BY Senator Beall
FEBRUARY 20, 2013
An act to amend Sections 17053.30 and 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 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 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 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) At the time the project is under consideration by a department
or the Wildlife Conservation Board, the donor shall indicate to the
department or the Wildlife Conservation Board, in the form and manner
specified by the department or the Wildlife Conservation Board, 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 Wildlife Conservation Board
shall maintain a list of parties that are interested in acquiring a
tax credit pursuant to this subdivision. The Wildlife Conservation
Board 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 Wildlife Conservation
Board 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 Wildlife Conservation Board 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 Wildlife
Conservation Board 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.
(7) The Wildlife Conservation Board shall not approve a transfer
of a credit under this section if the consideration received by the
taxpayer in exchange for the credit is less than 90 percent of the
value of the credit to be transferred.
SEC. 2. 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 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) At the time the project is under consideration by a department
or the Wildlife Conservation Board, the donor shall indicate to the
department or the Wildlife Conservation Board, in the form and manner
specified by the department or the Wildlife Conservation Board, 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 Wildlife Conservation Board
shall maintain a list of parties that are interested in acquiring a
tax credit pursuant to this subdivision. The Wildlife Conservation
Board 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 Wildlife Conservation
Board 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 Wildlife Conservation Board 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 Wildlife
Conservation Board 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.
(7) The Wildlife Conservation Board shall not approve a transfer
of a credit under this section if the consideration received by the
taxpayer in exchange for the credit is less than 90 percent of the
value of the credit to be transferred.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.