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,begin delete contributedend deletebegin insert made, no later than June 30, 2015,end insert
during the taxable year pursuant to the Natural Heritage Preservation Tax Credit Act of 2000, as provided.
This bill wouldbegin insert extend the period for when a qualified contribution is made for which a credit would be allowed to June 30, 2020. This bill would, for each taxable year beginning on or after January 1, 2014,end insert allow for the transfer of the credit allowed pursuant to the Natural Heritage Preservation Tax Credit Act of 2000 from prior years whose carryover period has not expired 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) (1) Under 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
22 is amended to read:
(a) There shall be allowed as a credit against the
24“net tax,” as defined in Section 17039, an amount equal to 55
25percent of the fair market value of any qualified contribution made
26on or after January 1, 2000, and not later than June 30, 2008, and
27on or after January 1, 2010, and not later than June 30,begin delete 2015,end deletebegin insert 2020,end insert
P3 1 by the taxpayer during the taxable year to the state, any local
2government, or any designated nonprofit organization, pursuant
3to Division 28 (commencing with Section 37000) of the Public
4Resources Code.
5(b) For purposes of this section, “qualified contribution” means
6a contribution of property, as defined in Section 37002 of the Public
7Resources Code, that has been approved for acceptance by the
8Wildlife Conservation Board pursuant to Division 28 (commencing
9with Section 37000) of the Public Resources Code.
10(c) In the case of any pass-thru entity, the fair market value of
11any qualified contribution approved for acceptance under Division
1228 (commencing with Section 37000) of the Public Resources
13Code shall be passed through to the partners or shareholders of
14the pass-thru entity in accordance with their interest in the pass-thru
15entity as of the date of the qualified contribution. For purposes of
16this subdivision, the term “pass-thru entity” means any partnership,
17“S” corporation, or limited liability company treated as a
18partnership.
19(d) If the credit allowed by this section exceeds the “net tax,”
20the excess may be carried over to reduce the “net tax” in the
21following year, and the succeeding seven years if necessary, until
22the credit is exhausted.
23(e) This credit shall be in lieu of any other credit or deduction
24which the taxpayer may otherwise claim pursuant to this part with
25respect to the property or any interest therein that is contributed.
26(f) (1) Notwithstanding any other law, for each taxable year
27beginning on or after January 1,begin delete 2013,end deletebegin insert 2014,end insert a taxpayer may
28
transfer credits from prior years whose carryover period has not
29expired to an unrelated party.
30(2) The taxpayer shall report to the Wildlife Conservation Board
31prior to the transfer of the credit, in the form and manner specified
32by the Wildlife Conservation Board, all required information
33regarding the transfer of the credit, including the social security
34or other taxpayer identification number of the unrelated party to
35whom the credit has been transferred and the face amount of the
36credit transferred, for the approval of the Wildlife Conservation
37Board.
38(3) Upon approval of the transfer, the Wildlife Conservation
39Board shall provide a certificate to the taxpayer evidencing the
40approval, in the form and manner specified by the Franchise Tax
P4 1Board, that
shall include all required information regarding the
2credit.
3(4) The Wildlife Conservation Board shall not approve a transfer
4of a credit under this section if the consideration received by the
5taxpayer in exchange for the credit is less than 90 percent of the
6value of the credit to be transferred.
Section 23630 of the Revenue and Taxation Code is
8amended to read:
(a) There shall be allowed as a credit against the “tax,”
10as defined in Section 23036, an amount equal to 55 percent of the
11fair market value of any qualified contribution made on or after
12January 1, 2000, and not later than June 30, 2008, and on or after
13January 1, 2010, and not later than June 30,begin delete 2015,end deletebegin insert 2020,end insert by the
14taxpayer during the taxable year to the state, any local government,
15or any designated nonprofit organization, pursuant to Division 28
16(commencing with Section 37000) of the Public Resources Code.
17(b) For purposes of this section, “qualified contribution” means
18a contribution of property, as defined in Section 37002 of the Public
19Resources Code, that has been approved for acceptance by the
20Wildlife Conservation Board pursuant to Division 28 (commencing
21with Section 37000) of the Public Resources Code.
22(c) In the case of any pass-thru entity, the fair market value of
23any qualified contribution approved for acceptance under Division
2428 (commencing with Section 37000) of the Public Resources
25Code shall be passed through to the partners or shareholders of
26the pass-thru entity in accordance with their interest in the pass-thru
27entity as of the date of the qualified contribution. For purposes of
28this subdivision, the term “pass-thru entity” means any partnership
29or “S” corporation.
30(d) If the credit allowed by this section exceeds the “tax,” the
31excess may be carried over to reduce the “tax” in the following
32year, and the succeeding seven years if necessary, until the credit
33is exhausted.
34(e) This credit shall be in lieu of any other credit or deduction
35that the taxpayer may otherwise claim pursuant to this part with
36respect to the property or any interest therein that is contributed.
37(f) (1) Notwithstanding any other law, for each taxable year
38beginning on or after January 1,begin delete 2013,end deletebegin insert 2014,end insert a taxpayer may
39transfer credits from prior years whose carryover
period has not
40expired to an unrelated party.
P5 1(2) The taxpayer shall report to the Wildlife Conservation Board
2prior to the transfer of the credit, in the form and manner specified
3by the Wildlife Conservation Board, all required information
4regarding the transfer of the credit, including the social security
5or other taxpayer identification number of the unrelated party to
6whom the credit has been transferred and the face amount of the
7credit transferred, for the approval of the Wildlife Conservation
8Board.
9(3) Upon approval of the transfer, the Wildlife Conservation
10Board shall provide a certificate to the taxpayer evidencing the
11approval, in the form and manner specified by the Franchise Tax
12Board, that shall include all required information regarding the
13credit.
14(4) The Wildlife Conservation Board shall not approve a transfer
15of a credit under this section if the consideration received by the
16taxpayer in exchange for the credit is less than 90 percent of the
17value of the credit to be transferred.
This act provides for a tax levy within the meaning of
19Article IV of the Constitution and shall go into immediate effect.
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