Add S171-v, amd SS210 & 606, Tax L; add S99-u, amd S92-s, St Fin L; amd S56-0307, En Con L
Establishes a credit against income tax for certain donations of real property donated for public beach access or use, public waters or trails, fish and wildlife conservation or other similar land conservation purposes; establishes the real property donation credit transitory fund; provides that monies in such fund shall be used for land conservation purposes.
STATE OF NEW YORK
________________________________________________________________________
5431
2013-2014 Regular Sessions
IN ASSEMBLY
February 26, 2013
___________
Introduced by M. of A. THIELE -- Multi-Sponsored by -- M. of A. CROUCH,
GIGLIO -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, the state finance law and the environmental
conservation law, in relation to establishing a credit against income
tax for certain real property donations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 171-v to
2 read as follows:
3 § 171-v. Credit for certain real property donations verification. The
4 department shall verify the amount of tax credits taken each fiscal year
5 which were allowed pursuant to subdivision forty-six of section two
6 hundred ten or subsection (vv) of section six hundred six of this chap-
7 ter. Upon such verification, the commissioner shall transfer such amount
8 from the real property donation credit transitory fund as defined in
9 section ninety-nine-u of the state finance law to the credit of the
10 general fund.
11 § 2. Section 210 of the tax law is amended by adding a new subdivision
12 46 to read as follows:
13 46. Credit for certain real property donations. (a) Any corporation
14 that makes a qualified donation of interest in real property located in
15 New York during the taxable year that is useful for public beach access
16 or use, public access to public waters or trails, fish and wildlife
17 conservation, or other similar land conservation purposes, as determined
18 by the commissioner of environmental conservation or the commissioner of
19 the office of parks, recreation and historic preservation, shall be
20 allowed a credit against the taxes imposed by this article equal to
21 twenty-five percent of the fair market value of the donated property
22 interest. To be eligible for such credit, the interest in real property
23 shall be donated to the state and approved by the commissioner of envi-
24 ronmental conservation or the commissioner of the office of parks,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09260-01-3
A. 5431 2
1 recreation and historic preservation, as set forth in section 56-0307 of
2 the environmental conservation law or section ninety-two-s of the state
3 finance law, as a donation qualified for a credit under this section.
4 The credit allowed under this section shall not exceed two hundred fifty
5 thousand dollars for any four consecutive tax years.
6 (b) The credit allowed under this subdivision for any taxable year
7 shall not reduce the tax due for such year to less than the higher of
8 the amounts prescribed in paragraphs (c) and (d) of subdivision one of
9 this section. However, if the amount of credit allowable under this
10 subdivision for any taxable year reduces the tax to such amount, any
11 amount of credit not deductible in such taxable year may be carried over
12 to the fifteen taxable years next following such taxable year and may be
13 deducted from the taxpayer's tax for such year or years.
14 § 3. Section 606 of the tax law is amended by adding a new subsection
15 (vv) to read as follows:
16 (vv) Credit for certain real property donations. (1) A taxpayer that
17 makes a qualified donation of interest in real property located in New
18 York during the taxable year that is useful for public beach access or
19 use, public access to public waters or trails, fish and wildlife conser-
20 vation, or other similar land conservation purposes, as determined by
21 the commissioner of environmental conservation or the commissioner of
22 the office of parks, recreation and historic preservation, shall be
23 allowed a credit against the taxes imposed by this article equal to
24 twenty-five percent of the fair market value of the donated property
25 interest. To be eligible for this credit, the interest in real property
26 must be donated to the state and approved by the commissioner of envi-
27 ronmental conservation or the commissioner of the office of parks,
28 recreation and historic preservation, as set forth in section 56-0307 of
29 the environmental conservation law or section ninety-two-s of the state
30 finance law, as a donation qualified for a credit under this section.
31 The credit allowed under this section shall not exceed one hundred thou-
32 sand dollars for any four consecutive tax years.
33 (2) If the amount of credit allowable under this subsection for any
34 taxable year shall exceed the taxpayer's tax for such year, any amount
35 of credit not deductible in such taxable year may be carried over to the
36 ten taxable years next following such taxable year and may be deducted
37 from the taxpayer's tax for such year or years.
38 (3) In the case of property owned by a married couple, if both spouses
39 are required to file separate New York state income tax returns, the
40 credit allowed by this subsection may be claimed by either spouse or
41 partially by both spouses with the sum total of the credits claimed by
42 both taxpayers in all tax years not exceeding the amount of the credit
43 earned under paragraph one of this subsection. If only one spouse is
44 required to file a New York state income tax return, that spouse may
45 claim the credit allowed by this subsection on a separate return.
46 § 4. The state finance law is amended by adding a new section 99-u to
47 read as follows:
48 § 99-u. Real property donation credit transitory fund. 1. There is
49 hereby established in the joint custody of the state comptroller and the
50 commissioner of taxation and finance a special revenue fund to be known
51 as the "real property donation credit transitory fund" which shall
52 consist of the real property donation credit transitory account.
53 2. The real property donation credit transitory account shall consist
54 of all moneys credited or transferred thereto from the environmental
55 protection fund or from the sale of bonds pursuant to the clean water,
56 clean air bond act of 1996 as full funding for tax credits approved as
A. 5431 3
1 compensation for land donated to the state in accordance with provisions
2 of section 56-0307 of the environmental conservation law or section
3 ninety-two-s of this article and subdivision forty-six of section two
4 hundred ten or subsection (vv) of section six hundred six of the tax
5 law. The full amount of tax credits earned by taxpayers under subdivi-
6 sion forty-six of section two hundred ten and subsection (vv) of section
7 six hundred six of the tax law shall be credited or transferred thereto
8 from the environmental protection fund at the time of approval.
9 3. Moneys in the real property donation credit transitory fund may be
10 invested by the comptroller pursuant to section ninety-eight-a of this
11 article, and any income received by the comptroller shall be used for
12 the purposes of such fund.
13 4. The moneys held in or credited to the fund shall be expended for
14 land conservation purposes, and may not be interchanged or commingled
15 with any other account or fund but may be commingled with any other fund
16 or account for investment purposes.
17 5. If the commissioner of taxation and finance determines that any of
18 the credits earned under subdivision forty-six of section two hundred
19 ten or subsection (vv) of section six hundred six of the tax law were
20 not redeemed, the amount of unredeemed credits shall be credited or
21 transferred to the environmental protection fund.
22 § 5. Paragraph (d) of subdivision 6 of section 92-s of the state
23 finance law, as amended by section 13 of part E of chapter 61 of the
24 laws of 2000, is amended to read as follows:
25 (d) Moneys from the open space account shall be available, pursuant to
26 appropriation, for any open space land conservation project including
27 tax credits for certain real property donations pursuant to subdivision
28 forty-six of section two hundred ten and subsection (vv) of section six
29 hundred six of the tax law, bio-diversity stewardship and research
30 pursuant to chapter five hundred fifty-four of the laws of nineteen
31 hundred ninety-three, for the purposes of agricultural and farmland
32 protection activities as authorized by article twenty-five-AAA of the
33 agriculture and markets law, non-point source abatement and control
34 projects pursuant to section 17-1409 of the environmental conservation
35 law and section eleven-b of the soil and water conservation districts
36 law, for Long Island Central Pine Barrens area planning or Long Island
37 south shore estuary reserve planning pursuant to title thirteen of arti-
38 cle fifty-four of the environmental conservation law, and for operation
39 and management of the Albany Pine Bush preserve commission pursuant to
40 subdivision two of section 54-0303 of the environmental conservation
41 law.
42 § 6. Subdivision 4 of section 56-0307 of the environmental conserva-
43 tion law, as added by chapter 413 of the laws of 1996, is amended to
44 read as follows:
45 4. The cost of an open space land conservation project shall include
46 the cost of preparation of a management plan for the preservation and
47 beneficial enjoyment of the land acquired pursuant to this section
48 except where such considerations have already been undertaken as part of
49 any existing plan applicable to the newly acquired land. The cost of an
50 open space land conservation project shall be deemed to include tax
51 credits for certain real property donations pursuant to subdivision
52 forty-six of section two hundred ten and subsection (vv) of section six
53 hundred six of the tax law, when such tax credit replaces any other
54 compensation for the state acquiring title to the property.
55 § 7. This act shall take effect on the first of January next succeed-
56 ing the date on which it shall have become a law.
