S T A T E   O F   N E W   Y O R K
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                                  4199

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2009
                               ___________

Introduced  by  M. of A. THIELE, WALKER, ALFANO -- Multi-Sponsored by --
  M. of A. BARRA, CROUCH, GIGLIO, SPANO -- 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:

  Section 1. The tax law is amended by adding a  new  section  171-t  to
read as follows:
  S  171-T. CREDIT FOR CERTAIN REAL PROPERTY DONATIONS VERIFICATION. THE
DEPARTMENT SHALL VERIFY THE AMOUNT OF TAX CREDITS TAKEN EACH FISCAL YEAR
WHICH WERE ALLOWED PURSUANT TO  SUBDIVISION  FORTY-ONE  OF  SECTION  TWO
HUNDRED  TEN OR SUBSECTION (QQ) OF SECTION SIX HUNDRED SIX OF THIS CHAP-
TER. UPON SUCH VERIFICATION, THE COMMISSIONER SHALL TRANSFER SUCH AMOUNT
FROM THE REAL PROPERTY DONATION CREDIT TRANSITORY  FUND  AS  DEFINED  IN
SECTION  NINETY-NINE-Q  OF  THE  STATE  FINANCE LAW TO THE CREDIT OF THE
GENERAL FUND.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
  41. CREDIT FOR CERTAIN REAL PROPERTY DONATIONS.  (A)  ANY  CORPORATION
THAT  MAKES A QUALIFIED DONATION OF INTEREST IN REAL PROPERTY LOCATED IN
NEW YORK DURING THE TAXABLE YEAR THAT IS USEFUL FOR PUBLIC BEACH  ACCESS
OR  USE,  PUBLIC  ACCESS  TO  PUBLIC WATERS OR TRAILS, FISH AND WILDLIFE
CONSERVATION, OR OTHER SIMILAR LAND CONSERVATION PURPOSES, AS DETERMINED
BY THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION OR THE COMMISSIONER OF
THE OFFICE OF PARKS, RECREATION  AND  HISTORIC  PRESERVATION,  SHALL  BE
ALLOWED  A  CREDIT  AGAINST  THE  TAXES IMPOSED BY THIS ARTICLE EQUAL TO
TWENTY-FIVE PERCENT OF THE FAIR MARKET VALUE  OF  THE  DONATED  PROPERTY
INTEREST.  TO BE ELIGIBLE FOR SUCH CREDIT, THE INTEREST IN REAL PROPERTY
SHALL BE DONATED TO THE STATE AND APPROVED BY THE COMMISSIONER OF  ENVI-
RONMENTAL  CONSERVATION  OR  THE  COMMISSIONER  OF  THE OFFICE OF PARKS,
RECREATION AND HISTORIC PRESERVATION, AS SET FORTH IN SECTION 56-0307 OF
THE ENVIRONMENTAL CONSERVATION LAW OR SECTION NINETY-TWO-S OF THE  STATE

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03990-02-9

A. 4199                             2

FINANCE  LAW,  AS  A DONATION QUALIFIED FOR A CREDIT UNDER THIS SECTION.
THE CREDIT ALLOWED UNDER THIS SECTION SHALL NOT EXCEED TWO HUNDRED FIFTY
THOUSAND DOLLARS FOR ANY FOUR CONSECUTIVE TAX YEARS.
  (B)  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN  THE  HIGHER  OF
THE  AMOUNTS  PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF
THIS SECTION. HOWEVER, IF THE AMOUNT  OF  CREDIT  ALLOWABLE  UNDER  THIS
SUBDIVISION  FOR  ANY  TAXABLE  YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
TO THE FIFTEEN TAXABLE YEARS NEXT FOLLOWING SUCH TAXABLE YEAR AND MAY BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(qq) to read as follows:
  (QQ)  CREDIT  FOR CERTAIN REAL PROPERTY DONATIONS. (1) A TAXPAYER THAT
MAKES A QUALIFIED DONATION OF INTEREST IN REAL PROPERTY LOCATED  IN  NEW
YORK  DURING  THE TAXABLE YEAR THAT IS USEFUL FOR PUBLIC BEACH ACCESS OR
USE, PUBLIC ACCESS TO PUBLIC WATERS OR TRAILS, FISH AND WILDLIFE CONSER-
VATION, OR OTHER SIMILAR LAND CONSERVATION PURPOSES,  AS  DETERMINED  BY
THE  COMMISSIONER  OF  ENVIRONMENTAL CONSERVATION OR THE COMMISSIONER OF
THE OFFICE OF PARKS, RECREATION  AND  HISTORIC  PRESERVATION,  SHALL  BE
ALLOWED  A  CREDIT  AGAINST  THE  TAXES IMPOSED BY THIS ARTICLE EQUAL TO
TWENTY-FIVE PERCENT OF THE FAIR MARKET VALUE  OF  THE  DONATED  PROPERTY
INTEREST.  TO BE ELIGIBLE FOR THIS CREDIT, THE INTEREST IN REAL PROPERTY
MUST BE DONATED TO THE STATE AND APPROVED BY THE COMMISSIONER  OF  ENVI-
RONMENTAL  CONSERVATION  OR  THE  COMMISSIONER  OF  THE OFFICE OF PARKS,
RECREATION AND HISTORIC PRESERVATION, AS SET FORTH IN SECTION 56-0307 OF
THE ENVIRONMENTAL CONSERVATION LAW OR SECTION NINETY-TWO-S OF THE  STATE
FINANCE  LAW,  AS  A DONATION QUALIFIED FOR A CREDIT UNDER THIS SECTION.
THE CREDIT ALLOWED UNDER THIS SECTION SHALL NOT EXCEED ONE HUNDRED THOU-
SAND DOLLARS FOR ANY FOUR CONSECUTIVE TAX YEARS.
  (2) IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS  SUBSECTION  FOR  ANY
TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, ANY AMOUNT
OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE
TEN TAXABLE YEARS NEXT FOLLOWING SUCH TAXABLE YEAR AND MAY  BE  DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (3) IN THE CASE OF PROPERTY OWNED BY A MARRIED COUPLE, IF BOTH SPOUSES
ARE  REQUIRED  TO  FILE  SEPARATE NEW YORK STATE INCOME TAX RETURNS, THE
CREDIT ALLOWED BY THIS SUBSECTION MAY BE CLAIMED  BY  EITHER  SPOUSE  OR
PARTIALLY  BY  BOTH SPOUSES WITH THE SUM TOTAL OF THE CREDITS CLAIMED BY
BOTH TAXPAYERS IN ALL TAX YEARS NOT EXCEEDING THE AMOUNT OF  THE  CREDIT
EARNED  UNDER  PARAGRAPH  ONE  OF THIS SUBSECTION. IF ONLY ONE SPOUSE IS
REQUIRED TO FILE A NEW YORK STATE INCOME TAX  RETURN,  THAT  SPOUSE  MAY
CLAIM THE CREDIT ALLOWED BY THIS SUBSECTION ON A SEPARATE RETURN.
  S  4. The state finance law is amended by adding a new section 99-q to
read as follows:
  S 99-Q. REAL PROPERTY DONATION CREDIT TRANSITORY FUND. 1.    THERE  IS
HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER  OF TAXATION AND FINANCE A SPECIAL REVENUE FUND TO BE KNOWN
AS THE "REAL PROPERTY  DONATION  CREDIT  TRANSITORY  FUND"  WHICH  SHALL
CONSIST OF THE REAL PROPERTY DONATION CREDIT TRANSITORY ACCOUNT.
  2.  THE REAL PROPERTY DONATION CREDIT TRANSITORY ACCOUNT SHALL CONSIST
OF ALL MONEYS CREDITED OR TRANSFERRED  THERETO  FROM  THE  ENVIRONMENTAL
PROTECTION  FUND  OR FROM THE SALE OF BONDS PURSUANT TO THE CLEAN WATER,
CLEAN AIR BOND ACT OF 1996 AS FULL FUNDING FOR TAX CREDITS  APPROVED  AS
COMPENSATION FOR LAND DONATED TO THE STATE IN ACCORDANCE WITH PROVISIONS
OF  SECTION  56-0307  OF  THE  ENVIRONMENTAL CONSERVATION LAW OR SECTION

A. 4199                             3

NINETY-TWO-S OF THIS ARTICLE AND SUBDIVISION FORTY-ONE  OF  SECTION  TWO
HUNDRED  TEN  OR  SUBSECTION  (QQ) OF SECTION SIX HUNDRED SIX OF THE TAX
LAW.  THE FULL AMOUNT OF TAX CREDITS EARNED BY TAXPAYERS UNDER  SUBDIVI-
SION FORTY-ONE OF SECTION TWO HUNDRED TEN AND SUBSECTION (QQ) OF SECTION
SIX  HUNDRED SIX OF THE TAX LAW SHALL BE CREDITED OR TRANSFERRED THERETO
FROM THE ENVIRONMENTAL PROTECTION FUND AT THE TIME OF APPROVAL.
  3. MONEYS IN THE REAL PROPERTY DONATION CREDIT TRANSITORY FUND MAY  BE
INVESTED  BY  THE COMPTROLLER PURSUANT TO SECTION NINETY-EIGHT-A OF THIS
ARTICLE, AND ANY INCOME RECEIVED BY THE COMPTROLLER SHALL  BE  USED  FOR
THE PURPOSES OF SUCH FUND.
  4.  THE  MONEYS  HELD IN OR CREDITED TO THE FUND SHALL BE EXPENDED FOR
LAND CONSERVATION PURPOSES, AND MAY NOT BE  INTERCHANGED  OR  COMMINGLED
WITH ANY OTHER ACCOUNT OR FUND BUT MAY BE COMMINGLED WITH ANY OTHER FUND
OR ACCOUNT FOR INVESTMENT PURPOSES.
  5.  IF THE COMMISSIONER OF TAXATION AND FINANCE DETERMINES THAT ANY OF
THE CREDITS EARNED UNDER SUBDIVISION FORTY-ONE OF  SECTION  TWO  HUNDRED
TEN  OR  SUBSECTION  (QQ) OF SECTION SIX HUNDRED SIX OF THE TAX LAW WERE
NOT REDEEMED, THE AMOUNT OF UNREDEEMED  CREDITS  SHALL  BE  CREDITED  OR
TRANSFERRED TO THE ENVIRONMENTAL PROTECTION FUND.
  S  5.  Paragraph  (d)  of  subdivision  6 of section 92-s of the state
finance law, as amended by section 13 of part E of  chapter  61  of  the
laws of 2000, is amended to read as follows:
  (d) Moneys from the open space account shall be available, pursuant to
appropriation,  for  any  open space land conservation project INCLUDING
TAX CREDITS FOR CERTAIN REAL PROPERTY DONATIONS PURSUANT TO  SUBDIVISION
FORTY-ONE  OF SECTION TWO HUNDRED TEN AND SUBSECTION (QQ) OF SECTION SIX
HUNDRED SIX OF THE  TAX  LAW,  bio-diversity  stewardship  and  research
pursuant  to  chapter  five  hundred  fifty-four of the laws of nineteen
hundred ninety-three, for the  purposes  of  agricultural  and  farmland
protection  activities  as  authorized by article twenty-five-AAA of the
agriculture and markets law,  non-point  source  abatement  and  control
projects  pursuant  to section 17-1409 of the environmental conservation
law and section eleven-b of the soil and  water  conservation  districts
law,  for  Long Island Central Pine Barrens area planning or Long Island
south shore estuary reserve planning pursuant to title thirteen of arti-
cle fifty-four of the environmental conservation law, and for  operation
and  management  of the Albany Pine Bush preserve commission pursuant to
subdivision two of section 54-0303  of  the  environmental  conservation
law.
  S  6.  Subdivision 4 of section 56-0307 of the environmental conserva-
tion law, as added by chapter 413 of the laws of  1996,  is  amended  to
read as follows:
  4.  The  cost of an open space land conservation project shall include
the cost of preparation of a management plan for  the  preservation  and
beneficial  enjoyment  of  the  land  acquired  pursuant to this section
except where such considerations have already been undertaken as part of
any existing plan applicable to the newly acquired land.  THE COST OF AN
OPEN SPACE LAND CONSERVATION PROJECT SHALL  BE  DEEMED  TO  INCLUDE  TAX
CREDITS  FOR  CERTAIN  REAL  PROPERTY  DONATIONS PURSUANT TO SUBDIVISION
FORTY-ONE OF SECTION TWO HUNDRED TEN AND SUBSECTION (QQ) OF SECTION  SIX
HUNDRED  SIX  OF  THE  TAX  LAW, WHEN SUCH TAX CREDIT REPLACES ANY OTHER
COMPENSATION FOR THE STATE ACQUIRING TITLE TO THE PROPERTY.
  S 7. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.