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 2000begin insert from prior years whose carryover period has not expiredend insert 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:
begin insertSection 37006 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
2amended to read:end insert
(a) begin insert(1)end insertbegin insert end insertUnder the program, upon approval by the board,
4a donor may contribute qualified property to a donee and receive
5a tax credit for a portion of the value of the property, as provided
6in Sections 17053.30 and 23630 of the Revenue and Taxation
7Code.
8(2) If the board approves a transfer of the credit pursuant to
9subdivision (f) of Section 17053.30 or subdivision (f) of Section
1023630 of the Revenue and Taxation Code, the board shall provide
11a certificate to the donor evidencing that approval, in a form
12
satisfactory to the Franchise Tax Board.
13(b) The board shall adopt guidelines or regulations to implement
14the program, including procedures for applications submitted
15pursuant to Chapter 4 (commencing with Section 37010) and for
16the evaluation of properties proposed to be contributed pursuant
17to the program. Chapter 3.5 (commencing with Section 11340) of
18Part 1 of Division 3 of Title 2 of the Government Code does not
19apply to the guidelines or regulations adopted pursuant to this
20section.
Section 17053.30 of the Revenue and Taxation Code
23 is amended to read:
(a) There shall be allowed as a credit against the
25“net tax,” as defined in Section 17039, an amount equal to 55
26percent of the fair market value of any qualified contribution made
27on or after January 1, 2000, and not later than June 30, 2008, and
28on or after January 1, 2010, and not later than June 30, 2015, by
29the taxpayer during the taxable year to the state, any local
30government, or any designated nonprofit organization, pursuant
31to Division 28 (commencing with Section 37000) of the Public
32Resources Code.
33(b) For purposes of this section, “qualified contribution” means
34a contribution of property, as defined in Section 37002 of the Public
P3 1Resources Code, that has been approved for
acceptance by the
2Wildlife Conservation Board pursuant to Division 28 (commencing
3with Section 37000) of the Public Resources Code.
4(c) In the case of any pass-thru entity, the fair market value of
5any qualified contribution approved for acceptance under Division
628 (commencing with Section 37000) of the Public Resources
7Code shall be passed through to the partners or shareholders of
8the pass-thru entity in accordance with their interest in the pass-thru
9entity as of the date of the qualified contribution. For purposes of
10this subdivision, the term “pass-thru entity” means any partnership,
11“S” corporation, or limited liability company treated as a
12partnership.
13(d) If the credit allowed by this section exceeds the “net tax,”
14the excess may be carried over to reduce the “net tax”
in the
15following year, and the succeeding seven years if necessary, until
16the credit is exhausted.
17(e) This credit shall be in lieu of any other credit or deduction
18which the taxpayer may otherwise claim pursuant to this part with
19respect to the property or any interest therein that is contributed.
20(f) (1) Notwithstanding any other law, for each taxable year
21beginning on or after January 1, 2013, a taxpayer may transferbegin delete any begin insert credits from
22credit, in whole or in part, allowed under this sectionend delete
23prior years whose carryover period has not expiredend insert to an unrelated
24party.
25(2) At the time the project is under consideration by a
26department or the Wildlife Conservation Board, the donor shall
27indicate to the department or the Wildlife Conservation Board,
in
28the form and manner specified by the department or the Wildlife
29Conservation Board, the donor’s interest in transferring the credit,
30in whole or in part, to an unrelated party.
31(3) On and after January 1, 2013, the
Wildlife Conservation
32Board shall maintain a list of parties that are interested in acquiring
33a tax credit pursuant to this subdivision. The Wildlife Conservation
34Board shall collect all required information necessary for the
35transfer of the credit, including the social security or other taxpayer
36identification number of the unrelated party to whom a credit could
37be transferred and the amount of the tax credit the party is
38interested in acquiring.
39(4) As part of the approval process, the
Wildlife Conservation
40Board shall match projects with donors interested in transferring
P4 1credits with parties interested in acquiring a tax credit. All parties
2shall agree to any proposed transfer of a tax credit.
3(5) The Wildlife Conservation Board shall establish procedures
4as needed, including, but not limited to, the use of an escrow
5account, for the tax credit to be purchased by the acquiring entity,
6the donor to receive the payment for the value of the transferred
7tax credit at the time of project closing, and for a certificate
8evidencing the tax credit to be given to the unrelated party. The
9Wildlife Conservation Board shall issue a certificate, in the form
10and manner specified by the Franchise Tax Board, that shall include
11all required information regarding the credit.
12(6) For purposes of this subdivision, “department” has the same
13meaning as defined in subdivision (d) of Section 37002 of the
14Public Resources Code.
15(2) The taxpayer shall report to the Wildlife Conservation Board
16prior to the transfer of the credit, in the form and manner specified
17by the Wildlife Conservation Board, all required information
18regarding the transfer of the credit, including the social security
19or other taxpayer identification number of the unrelated party to
20whom the credit has been transferred and the face amount of the
21credit transferred, for the approval of the Wildlife Conservation
22Board.
23(3) Upon approval of the transfer, the Wildlife Conservation
24Board shall provide a certificate to the taxpayer evidencing the
25approval, in the form and manner specified by the Franchise Tax
26Board, that shall include all required information regarding the
27credit.
28(7)
end delete
29begin insert(4)end insert 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
35amended to read:
(a) There shall be allowed as a credit against the “tax,”
37as defined in Section 23036, an amount equal to 55 percent of the
38fair market value of any qualified contribution made on or after
39January 1, 2000, and not later than June 30, 2008, and on or after
40January 1, 2010, and not later than June 30, 2015, by the taxpayer
P5 1during the taxable year to the state, any local government, or any
2designated nonprofit organization, pursuant to Division 28
3(commencing with Section 37000) of the Public Resources Code.
4(b) For purposes of this section, “qualified contribution” means
5a contribution of property, as defined in Section 37002 of the Public
6Resources Code, that has been approved for
acceptance by the
7Wildlife Conservation Board pursuant to Division 28 (commencing
8with Section 37000) of the Public Resources Code.
9(c) In the case of any pass-thru entity, the fair market value of
10any qualified contribution approved for acceptance under Division
1128 (commencing with Section 37000) of the Public Resources
12Code shall be passed through to the partners or shareholders of
13the pass-thru entity in accordance with their interest in the pass-thru
14entity as of the date of the qualified contribution. For purposes of
15this subdivision, the term “pass-thru entity” means any partnership
16or “S” corporation.
17(d) If the credit allowed by this section exceeds the “tax,” the
18excess may be carried over to reduce the “tax” in the following
19year, and the succeeding seven years if
necessary, until the credit
20is exhausted.
21(e) This credit shall be in lieu of any other credit or deduction
22that the taxpayer may otherwise claim pursuant to this part with
23respect to the property or any interest therein that is contributed.
24(f) (1) Notwithstanding any other law, for each taxable year
25beginning on or after January 1, 2013, a taxpayer may transferbegin delete any begin insert credits from
26credit, in whole or in part, allowed under this sectionend delete
27prior years whose carryover period has not expiredend insert to an unrelated
28party.
29(2) At the time the project is under consideration by a
30department or the Wildlife Conservation Board, the donor shall
31indicate to the department or the Wildlife Conservation Board, in
32the form and manner specified by the department or the Wildlife
33Conservation
Board, the donor’s interest in transferring the credit,
34in whole or in part, to an unrelated party.
35(3) On and after January 1, 2013, the
Wildlife Conservation
36Board shall maintain a list of parties that are interested in acquiring
37a tax credit pursuant to this subdivision. The Wildlife Conservation
38Board shall collect all required information necessary for the
39transfer of the credit, including the social security or other taxpayer
40identification number of the unrelated party to whom a credit could
P6 1be transferred and the amount of the tax credit the party is
2interested in acquiring.
3(4) As part of the approval process, the
Wildlife Conservation
4Board shall match projects with donors interested in transferring
5credits with parties interested in acquiring a tax credit. All parties
6shall agree to any proposed transfer of a tax credit.
7(5) The Wildlife Conservation Board shall establish procedures
8as needed, including, but not limited to, the use of an escrow
9account, for the tax credit to be purchased by the acquiring entity,
10the donor to receive the payment for the value of the transferred
11tax credit at the time of project closing, and for a certificate
12evidencing the tax credit to be given to the unrelated party. The
13Wildlife Conservation Board shall issue a certificate, in the form
14and manner specified by the Franchise Tax Board, that shall include
15all required information regarding the credit.
16(6) For purposes of this subdivision, “department” has the same
17meaning as defined in subdivision (d) of Section 37002 of the
18Public Resources Code.
19(2) The taxpayer shall report to the Wildlife Conservation Board
20prior to the transfer of the credit, in the form and manner specified
21by the Wildlife Conservation Board, all required information
22regarding the transfer of the credit, including the social security
23or other taxpayer identification number of the unrelated party to
24whom the credit has been transferred and the face amount of the
25credit transferred, for the approval of the Wildlife Conservation
26Board.
27(3) Upon approval of the transfer, the Wildlife Conservation
28Board shall provide a certificate to the taxpayer evidencing the
29approval, in the form and manner specified by the Franchise Tax
30Board, that shall include all required information regarding the
31credit.
32(7)
end delete
33begin insert(4)end insert The Wildlife Conservation Board shall not approve a transfer
34of a credit under this section if the consideration received by the
35taxpayer in exchange for the credit is less than 90 percent of the
36value of the credit to be transferred.
This act provides for a tax levy within the meaning of
3Article IV of the Constitution and shall go into immediate effect.
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