BILL NUMBER: SB 355	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 27, 2014
	AMENDED IN SENATE  MAY 13, 2013
	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 Section 37006 of the Public Resources Code, and 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   made, no later than June
30, 2015,  during the taxable year pursuant to the Natural
Heritage Preservation Tax Credit Act of 2000, as provided.
   This bill would  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,  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 1.  Section 37006 of the Public Resources Code is amended
to read:
   37006.  (a) (1) Under the program, upon approval by the board, 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 approves a transfer of the credit pursuant to
subdivision (f) of Section 17053.30 or subdivision (f) of Section
23630 of the Revenue and Taxation Code, the board shall provide a
certificate to the donor evidencing that approval, in a form
satisfactory to the Franchise Tax Board.
   (b) The board 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. 2.  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, 
 2020,  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,   2014,
 a taxpayer may transfer credits from prior years whose
carryover period has not expired 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.
   (4) 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.  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, 
 2020,  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,  2014,
 a taxpayer may transfer credits from prior years whose
carryover period has not expired 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.
   (4) 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. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.