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

                                  8051

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 27, 2011
                               ___________

Introduced  by M. of A. THIELE -- Multi-Sponsored by -- M. of A. 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-v to
read as follows:
  S 171-V. 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-FOUR OF SECTION TWO
HUNDRED TEN OR SUBSECTION (TT) 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-U 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
44 to read as follows:
  44.  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.
                                                           LBD11676-01-1

A. 8051                             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
(tt) to read as follows:
  (TT)  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-u to
read as follows:
  S 99-U. 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. 8051                             3

NINETY-TWO-S OF THIS ARTICLE AND SUBDIVISION FORTY-FOUR OF  SECTION  TWO
HUNDRED  TEN  OR  SUBSECTION  (TT) OF SECTION SIX HUNDRED SIX OF THE TAX
LAW.  THE FULL AMOUNT OF TAX CREDITS EARNED BY TAXPAYERS UNDER  SUBDIVI-
SION  FORTY-FOUR  OF  SECTION  TWO  HUNDRED  TEN  AND SUBSECTION (TT) 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-FOUR OF SECTION TWO HUNDRED
TEN OR SUBSECTION (TT) 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-FOUR OF SECTION TWO HUNDRED TEN AND SUBSECTION (TT) 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-FOUR OF SECTION TWO HUNDRED TEN AND SUBSECTION (TT) 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.