S T A T E O F N E W Y O R K
________________________________________________________________________
6928
2015-2016 Regular Sessions
I N A S S E M B L Y
April 10, 2015
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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:
Section 1. The tax law is amended by adding a new section 171-w to
read as follows:
S 171-W. 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-NINE OF SECTION TWO
HUNDRED TEN-B OR SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS
CHAPTER. UPON SUCH VERIFICATION, THE COMMISSIONER SHALL TRANSFER SUCH
AMOUNT FROM THE REAL PROPERTY DONATION CREDIT TRANSITORY FUND AS DEFINED
IN SECTION NINETY-NINE-W OF THE STATE FINANCE LAW TO THE CREDIT OF THE
GENERAL FUND.
S 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
49. 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,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10351-01-5
A. 6928 2
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 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 PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION
TWO HUNDRED TEN. 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
(ccc) to read as follows:
(CCC) 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-w to
read as follows:
S 99-W. 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
A. 6928 3
COMPENSATION FOR LAND DONATED TO THE STATE IN ACCORDANCE WITH PROVISIONS
OF SECTION 56-0307 OF THE ENVIRONMENTAL CONSERVATION LAW OR SECTION
NINETY-TWO-S OF THIS ARTICLE AND SUBDIVISION FORTY-NINE OF SECTION TWO
HUNDRED TEN-B OR SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THE TAX
LAW. THE FULL AMOUNT OF TAX CREDITS EARNED BY TAXPAYERS UNDER SUBDIVI-
SION FORTY-NINE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (CCC) 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-NINE OF SECTION TWO HUNDRED
TEN-B OR SUBSECTION (CCC) 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-NINE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (CCC) 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-NINE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (CCC) 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.