SB 355, as amended, Beall. Income taxes: credit: conservation.
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, defined as a contribution of property that has been approved for acceptance by the Wildlife Conservation Board, that is made no later than June 30, 2015, during the taxable year pursuant to the Natural Heritage Preservation Tax Credit Act of 2000, as provided. Those laws allow the credit to be carried over for 8 years if necessary.
This bill would extend the period for when a qualified contribution is made for which a tax credit would be allowed to June 30, 2020. This bill would also extend the carryover period to 15 years for a qualified contribution made on or after January 1, 2015.
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, 2020, 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.
P3 1(d) (1) For a qualified contribution made on or after January
21, 2000, and before January 1,
2015, if the credit allowed by this
3section exceeds the “net tax,” the excess may be carried over to
4reduce the “net tax” in the following year, and the succeeding
5seven years if necessary, until the credit is exhausted.
6(2) For a qualified contribution made on or after January 1,
72015, if the credit allowed by this section exceeds the “net tax,”
8the excess may be carried over to reduce the “net tax” in the
9following year, and the succeeding 14 years if necessary, until the
10credit is exhausted.
11(e) This credit
shall be in lieu of any other credit or deduction
12begin delete whichend deletebegin insert thatend insert the taxpayer may otherwise claim pursuant to this part
13with respect to the property or any interest therein that is
14contributed.
Section 23630 of the Revenue and Taxation Code is
16amended to read:
(a) There shall be allowed as a credit against the “tax,”
18as defined in Section 23036, an amount equal to 55 percent of the
19fair market value of any qualified contribution made on or after
20January 1, 2000, and not later than June 30, 2008, and on or after
21January 1, 2010, and not later than June 30, 2020, by the taxpayer
22during the taxable year to the state, any local government, or any
23designated nonprofit organization, pursuant to Division 28
24(commencing with Section 37000) of the Public Resources Code.
25(b) For purposes of this section, “qualified contribution” means
26a contribution of property, as defined in Section 37002 of the Public
27Resources Code, that has been approved for acceptance
by the
28Wildlife Conservation Board pursuant to Division 28 (commencing
29with Section 37000) of the Public Resources Code.
30(c) In the case of any pass-thru entity, the fair market value of
31any qualified contribution approved for acceptance under Division
3228 (commencing with Section 37000) of the Public Resources
33Code shall be passed through to the partners or shareholders of
34the pass-thru entity in accordance with their interest in the pass-thru
35entity as of the date of the qualified contribution. For purposes of
36this subdivision, the term “pass-thru entity” means any partnership
37or “S” corporation.
38(d) (1) For a qualified contribution made on or after January
391, 2000, and before January 1, 2015, if the credit allowed by this
40section exceeds the “tax,” the
excess may be carried over to reduce
P4 1the “tax” in the following year, and the succeeding seven years if
2necessary, until the credit is exhausted.
3(2) For a qualified contribution made on or after January 1,
42015, if the credit allowed by this section exceeds the “tax,” the
5excess may be carried over to reduce the “tax” in the following
6year, and the succeeding 14 years if necessary, until the credit is
7exhausted.
8(e) This creditbegin delete or a grant under Section 37006 of the Public shall be in lieu of any other credit or deduction
9Resources Codeend delete
10that the taxpayer may otherwise claim pursuant to this part with
11respect to the property or any interest therein that is
contributed.
This act provides for a tax levy within the meaning of
13Article IV of the Constitution and shall go into immediate effect.
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