S T A T E O F N E W Y O R K
________________________________________________________________________
5522
2013-2014 Regular Sessions
I N S E N A T E
May 16, 2013
___________
Introduced by Sen. GIPSON -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to the conservation, open space
and farmland protection credit trading program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "Conserva-
tion, Open Space and Farmland Protection Credit Trading Program".
S 2. Legislative intent. Protection of our state natural resources is
an important state policy. Conservation of open space, farmland and
forest protection are important to a healthy and sustainable future. Not
only does land conservation serve an important environmental and public
health benefit such as water quality protection and pollution
prevention, these conserved properties can provide a significant econom-
ic benefit to the people of this state. Farmers who participate in
conservation easements avail themselves to funds to invest in diversify-
ing and expanding their farm businesses, build new infrastructure,
introduce new crops, purchase equipment or livestock, and perhaps most
importantly, transfer family farms to the next generation of farmers.
This program is designed to further the policies set out in article 49
of the environmental conservation law and to increase incentives to
landowners to conserve their land. This program creates a market for
tradable conservation easement credits to stimulate land conservation in
the state of New York.
S 3. Section 210 of the tax law is amended by adding a new subdivision
47 to read as follows:
47. CONSERVATION, OPEN SPACE AND FARMLAND PROTECTION CREDIT. (A) AN
ELIGIBLE DONOR WHO DONATES QUALIFIED REAL PROPERTY INTEREST FOR A QUALI-
FIED CONSERVATION PURPOSE TO AN ELIGIBLE DONEE SHALL BE ALLOWED A CREDIT
OWNED BY SUCH TAXPAYER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11087-02-3
S. 5522 2
(B) THE VALUE OF THE CREDIT SHALL EQUAL FIFTY PERCENT OF THE FAIR
MARKET VALUE OF THE QUALIFIED REAL PROPERTY DONATION CALCULATED TO
EXCLUDE ANY SHORT TERM CAPITAL GAIN PURSUANT TO 26 U.S.C.A. S 170 (E)
(1)(A). THE AMOUNT OF THE TAX CREDIT SHALL NOT EXCEED ONE HUNDRED THOU-
SAND DOLLARS FOR ANY CONTIGUOUS PARCELS OF LAND OWNED BY THE SAME LAND-
OWNER, OR AN ENTITY IN WHICH THE LANDOWNER HAS AN INTEREST. A TAXPAYER
SHALL NOT BE ALLOWED ANY OTHER TAX CREDIT AGAINST TAXES IMPOSED UNDER
THIS ARTICLE FOR A CONSERVATION EASEMENT ON SUCH PROPERTY.
(C) FOR PURPOSES OF THIS SUBDIVISION A QUALIFIED REAL PROPERTY INTER-
EST MEANS A CONSERVATION EASEMENT AS DEFINED IN ARTICLE FORTY-NINE OF
THE ENVIRONMENTAL CONSERVATION LAW AND THE REGULATIONS PROMULGATED THER-
EUNDER OR A FULL REAL PROPERTY INTEREST AS DEFINED UNDER 26 U.S.C.A. S
170(H)(2) AND CORRESPONDING REGULATION IN 26 C.F.R. S 170-A-14(B).
EITHER INTEREST MUST BE IN FULLY INSTATE LAND. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, A GOLF COURSE DOES NOT QUALIFY AS A CONSERVATION EASE-
MENT FOR PURPOSE OF THIS SUBDIVISION.
(D) FOR PURPOSES OF THIS SUBDIVISION AN "ELIGIBLE DONEE" MEANS A
"PUBLIC BODY" OR A "NOT-FOR-PROFIT CONSERVATION ORGANIZATION" AS DEFINED
IN ARTICLE FORTY-NINE OF THE ENVIRONMENTAL CONSERVATION LAW. IN ADDI-
TION, TO QUALIFY AS AN ELIGIBLE DONEE A "NOT-FOR-PROFIT CONSERVATION
ORGANIZATION" MUST BE REGISTERED WITH THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION.
(E) ELIGIBLE DONOR MEANS ANY PERSON OR ENTITY WHO OWNS A QUALIFIED
REAL PROPERTY INTEREST, INCLUDING INDIVIDUALS, CORPORATIONS, TRUSTS AND
ESTATES, PARTNERS IN PARTNERSHIPS AND OTHER FLOW THROUGH ENTITIES, AND
BOTH MARRIAGE PARTNERS.
(F) ANY QUALIFIED DONOR HOLDING A PRE-APPROVED CONSERVATION EASEMENT
CREDIT MAY SELL OR TRANSFER IN PART, OR IN FULL, THE CONSERVATION EASE-
MENT CREDIT TO ANOTHER PERSON OR ENTITY FOR USE AGAINST TAX IMPOSED
UNDER THIS ARTICLE. IN ORDER FOR THE TRANSFEREE OR PURCHASER TO APPLY
THE CONSERVATION EASEMENT TAX CREDIT AGAINST TAXES FOR A PARTICULAR
YEAR, THE TRANSFEREE MUST HAVE ACQUIRED THE CONSERVATION EASEMENT TAX
CREDIT ON OR BEFORE THE DATE UPON WHICH THE TRANSFEREE'S TAXES ARE DUE
(WITHOUT EXTENSIONS) FOR THE YEAR IN QUESTION.
(G) LIMITATIONS ON USE OF CONSERVATION EASEMENT CREDITS. (1) THE
CONSERVATION EASEMENT CREDIT MAY NOT BE USED, BY AMENDMENT OR OTHERWISE,
AGAINST TAXES OWING FOR TAX YEARS PRIOR TO THE YEAR IN WHICH THE CONSER-
VATION EASEMENT CREDIT WAS EARNED OR ACQUIRED BY THE TAXPAYER.
(2) ONLY ONE CONSERVATION EASEMENT CREDIT MAY BE EARNED PER A QUALI-
FIED REAL PROPERTY INTEREST DONATION:
(A) IF THE QUALIFIED REAL PROPERTY INTEREST IS HELD IN COMMON OWNER-
SHIP, THE CONSERVATION EASEMENT CREDIT SHALL BE ALLOCATED IN PROPORTION
TO RESPECTIVE OWNERSHIP SHARES.
(B) IF THE QUALIFIED REAL PROPERTY INTEREST IS HELD BY A PASS-THROUGH
ENTITY, THE CONSERVATION EASEMENT CREDIT SHALL BE ALLOCATED AS
PRESCRIBED UNDER 26 U.S.C.A. S 704(B) AND CORRESPONDING REGULATIONS IN
26 C.F.R. S 1.704A-1(B)(4)(II).
(3) AN ELIGIBLE DONOR MAY EARN ONLY ONE CONSERVATION EASEMENT CREDIT
PER INCOME TAX YEAR.
(4)(A) THE CREDIT SHALL ONLY APPLY FOR TEN YEARS FOLLOWING THE QUALI-
FIED REAL PROPERTY DONATION.
(B) IN DETERMINING ANY CARRY-FORWARD AMOUNT, THE FOLLOWING RULES
APPLY: (I) THE AMOUNT OF CONSERVATION EASEMENT CREDIT USED IN A TAXABLE
YEAR, WHEN COMBINED WITH ALL OTHER STATE INCOME TAX CREDITS OF THE USER,
MAY NOT EXCEED THE USER'S TOTAL STATE TAX LIABILITY FOR THE TAXABLE
YEAR.
S. 5522 3
(II) ANY UNUSED PORTION OF CONSERVATION EASEMENT CREDIT MAY BE CARRIED
FORWARD UP TO TEN YEARS. ANY UNUSED PORTION OF A CONSERVATION EASEMENT
CREDIT SHALL SURVIVE THE DEATH OF THE INDIVIDUAL AND MAY BE USED OR
TRANSFERRED BY THE DECEDENT'S ESTATE.
(H) APPROVAL PROCESS. (1) BEFORE AN ELIGIBLE DONOR MAY USE OR TRANSFER
A CONSERVATION EASEMENT CREDIT, AN ELIGIBLE DONOR SHALL ATTAIN APPROVAL
FROM THE EASEMENT CREDIT APPROVAL BOARD ESTABLISHED BY PARAGRAPH (I) OF
THIS SUBDIVISION. RECEIPT OF APPROVAL FROM THE EASEMENT CREDIT APPROVAL
BOARD SIGNIFIES ONLY THE SATISFACTION OF THE SCREENING REQUIREMENTS
PURSUANT TO SUBPARAGRAPH THREE OF PARAGRAPH (I) OF THIS SUBDIVISION. THE
APPROVAL HAS NO PROBATIVE VALUE IN ANOTHER STATE OR FEDERAL ADMINISTRA-
TIVE ACTION, SUCH AS AN AUDIT REVIEW OF THE CONSERVATION EASEMENT CREDIT
USED.
(A) THE ELIGIBLE DONOR SHALL SUBMIT TO THE CONSERVATION EASEMENT CRED-
IT APPROVAL BOARD AN APPLICATION FOR APPROVAL ON A FORM CREATED BY THE
CONSERVATION EASEMENT CREDIT APPROVAL BOARD THAT CONTAINS INFORMATION
REQUIRED BY THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD TO ASSESS
THE CRITERIA PURSUANT TO SUBPARAGRAPH THREE OF PARAGRAPH (I) OF THIS
SUBDIVISION. SUCH DOCUMENTS MAY INCLUDE A DRAFT OR RECORDED CONSERVATION
EASEMENT, A COPY OF A QUALIFIED APPRAISAL, AND ANY OTHER REQUIRED INFOR-
MATION. FOR THE PURPOSES OF THIS SUBDIVISION A QUALIFIED APPRAISAL MEANS
AN APPRAISAL IN ACCORDANCE WITH 26 C.F.R. S 170A-13(C)(4) AND THE
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE ("USPAP").
(B) AN ELIGIBLE DONOR MAY APPLY FOR CONDITIONAL APPROVAL BEFORE A
QUALIFIED REAL PROPERTY INTEREST DONATION HAS BEEN RECORDED. IF CONDI-
TIONAL APPROVAL IS GRANTED, THE APPLICATION MUST BE RESUBMITTED TO THE
CONSERVATION EASEMENT CREDIT APPROVAL BOARD AFTER THE DONATION HAS BEEN
RECORDED FOR THE LIMITED PURPOSE OF DEMONSTRATING CONFORMITY WITH THE
DRAFT DOCUMENTS.
(C) THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD SHALL NOTIFY THE
ELIGIBLE DONOR OF ITS DECISION WITHIN SIXTY DAYS OF RECEIVING AN APPLI-
CATION OR WITHIN THIRTY DAYS OF RECEIVING A RESUBMISSION.
(D) IN THE EVENT OF APPROVAL, THE CONSERVATION EASEMENT CREDIT
APPROVAL BOARD SHALL ISSUE A TRACKING NUMBER TO THE DONOR. TO USE THE
CONSERVATION EASEMENT CREDIT, THE DONOR OR TRANSFEREE SHALL ENTER THE
TRACKING NUMBER ON THE APPROPRIATE TAX FORMS ISSUED BY THE DEPARTMENT,
THUS INDICATING RECEIPT OF APPROVAL.
(E) THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD SHALL PROVIDE A
BRIEF STATEMENT OF REASONS FOR A DECISION TO DENY APPROVAL. ONCE THE
PROBLEMS IDENTIFIED BY THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD
HAVE BEEN REMEDIED, AN ELIGIBLE DONOR MAY RESUBMIT THE APPLICATION FOR
APPROVAL. DECISIONS TO DENY APPROVAL ARE NOT SUBJECT TO APPEAL.
(2) THE FOLLOWING RULES AND PROCEDURES MUST BE FOLLOWED TO TRANSFER A
CONSERVATION EASEMENT CREDIT:
(A) A TRANSFEROR AND A TRANSFEREE SHALL NOTIFY THE DEPARTMENT OF A
CONSERVATION EASEMENT CREDIT TRANSFER. BOTH PARTIES SHALL PROVIDE THE
CONSERVATION EASEMENT CREDIT TRACKING NUMBER AND AMOUNT TRANSFERRED ON
THE APPROPRIATE TAX FORMS, WHICH SHALL BE FILED WITH THE INCOME TAX
RETURN FOR THE YEAR IN WHICH THE CONSERVATION EASEMENT CREDIT TRANSFER
IS MADE. A TRANSFEREE MAY NOT USE A TRANSFERRED CONSERVATION EASEMENT
CREDIT UNLESS THE TRANSFEROR'S WRITTEN STATEMENT VERIFIES THE AMOUNT OF
CONSERVATION EASEMENT CREDIT USED BY THE TRANSFEREE.
(B) THE DONOR OF A TRANSFERRED CONSERVATION EASEMENT CREDIT SHALL BE
THE TAX-MATTERS REPRESENTATIVE IN ALL MATTERS WITH RESPECT TO THE
CONSERVATION EASEMENT CREDIT. A TAX-MATTERS REPRESENTATIVE SHALL BE
RESPONSIBLE FOR REPRESENTING AND BINDING THE TRANSFEREES WITH RESPECT TO
S. 5522 4
ALL ISSUES AFFECTING THE CONSERVATION EASEMENT CREDIT, INCLUDING, BUT
NOT LIMITED TO, THE APPRAISAL, NOTIFICATIONS, CORRESPONDENCE FROM AND
WITH THE DEPARTMENT AND THE IRS, AUDIT EXAMINATIONS, ASSESSMENTS,
SETTLEMENT AGREEMENTS, AND THE STATUTE OF LIMITATIONS AND EXTENSIONS
THEREOF. FINAL RESOLUTIONS OF DISPUTES REGARDING A CONSERVATION EASEMENT
CREDIT BETWEEN THE DEPARTMENT AND A TAX-MATTERS REPRESENTATIVE, INCLUD-
ING ADMINISTRATIVE AND JUDICIAL DECISIONS, SHALL BE BINDING ON TRANSFER-
EES.
(C) IN THE EVENT THE TRANSFERRED CONSERVATION EASEMENT CREDIT IS
DISALLOWED OR DEVALUATED IN AUDIT PROCEDURES, THE DEPARTMENT SHALL FIRST
MAKE DEMANDS FOR PAYMENT OF ANY ADDITIONAL TAX, TOGETHER WITH INTEREST
AND PENALTIES, FROM THE CONSERVATION EASEMENT CREDIT EARNING DONOR. IN
THE EVENT SUCH PAYMENT DEMAND IS NOT VOLUNTARILY SATISFIED WITHIN APPLI-
CABLE TIME LIMIT, THE DEPARTMENT SHALL PROCEED TO COLLECTION AGAINST THE
TRANSFEREES ON A PRO RATA BASIS.
(I) ADMINISTRATION. (1) TO ADMINISTER THE CONSERVATION, OPEN SPACE AND
FARMLAND PROTECTION CREDIT TRADING PROGRAM, THE DEPARTMENT IS AUTHOR-
IZED:
(A) TO REQUIRE ADDITIONAL INFORMATION FROM AN ELIGIBLE DONOR OR TRANS-
FEREE REGARDING THE APPRAISAL VALUE OF THE EASEMENT, THE AMOUNT OF THE
CONSERVATION EASEMENT PROGRAM, THE VALIDITY OF THE CONSERVATION EASEMENT
CREDIT, AND OTHER RELEVANT MATTERS; AND
(B) TO REVIEW, FOR GOOD CAUSE SHOWN, AND ACCEPT OR REJECT, IN WHOLE OR
IN PART, ALL ASPECTS RELATING TO A CONSERVATION EASEMENT CREDIT, INCLUD-
ING COMPLIANCE WITH FEDERAL RULES AND REGULATIONS. IN APPLYING FEDERAL
RULES AND REGULATIONS, THE DEPARTMENT SHALL DETERMINE WHETHER A USED
CONSERVATION EASEMENT CREDIT COMPLIES WITH THE APPROPRIATE INTERNAL
REVENUE CODE SECTIONS AND TREASURY REGULATIONS. ANY POSITIONS TAKEN BY
THE UNITED STATES COMMISSIONER OF THE INTERNAL REVENUE SERVICE AND/OR
ANY FEDERAL COURTS SHOULD BE CONSIDERED BUT ARE NOT BINDING ON THE
DEPARTMENT.
(2) THERE IS CREATED THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD
TO ADMINISTER THE APPROVAL PROCESS SET FORTH IN THIS SUBDIVISION. THE
BOARD SHALL REVIEW APPLICATIONS PURSUANT TO CRITERIA SET FORTH IN THIS
SUBDIVISION.
(A) THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD SHALL CONSIST OF
THREE MEMBERS AS FOLLOWS: A REPRESENTATIVE OF THE DEPARTMENT WHO IS
KNOWLEDGEABLE ABOUT APPRAISAL VALUATIONS; A REPRESENTATIVE OF THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION WHO IS KNOWLEDGEABLE ABOUT
CONSERVATION VALUES; AND A REPRESENTATIVE OF THE STATE ATTORNEY GENER-
AL'S OFFICE WHO IS KNOWLEDGEABLE ABOUT THE LEGAL REQUIREMENTS FOR QUALI-
FIED REAL PROPERTY INTERESTS.
(B) THE BOARD MEMBERS SHALL BE APPOINTED ADMINISTRATIVELY BY THE
DIRECTORS OF THE RESPECTIVE DEPARTMENTS AND MAY BE CHANGED FROM TIME TO
TIME AT THE PLEASURE OF THE APPOINTING AUTHORITY.
(3) THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD SHALL LIMIT
APPROVAL REVIEW TO THE FOLLOWING CONSIDERATIONS:
(A) WHETHER THE APPRAISAL APPEARS TO MEET MINIMUM USPAP STANDARDS AND
IRS REQUIREMENTS FOR A QUALIFIED APPRAISAL, AND WHETHER ITS VALUATION
DOES NOT APPEAR TO BE MANIFESTLY ABUSIVE.
(B) WHETHER THE CONSERVATION VALUES ARGUABLY COMPLY WITH THE REQUIRE-
MENTS PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION.
(C) IN THE CASE OF A CONSERVATION EASEMENT DONATION, WHETHER THE
DOCUMENTATION REQUIRED FOR THE EASEMENT ARGUABLY COMPLIES WITH MINIMUM
STANDARDS FOR A QUALIFIED EASEMENT PURSUANT TO ARTICLE FORTY-NINE OF THE
ENVIRONMENTAL CONSERVATION LAW.
S. 5522 5
(4) THE DEPARTMENT SHALL ISSUE A REPORT EVERY YEAR SUMMARIZING BY
COUNTY THE FOLLOWING ANNUAL TOTALS:
(A) NUMBER OF QUALIFIED REAL PROPERTY INTEREST DONATIONS APPROVED BY
THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD;
(B) FAIR MARKET VALUE OF QUALIFIED REAL PROPERTY INTEREST DONATIONS
APPROVED BY THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD;
(C) VALUE OF CONSERVATION EASEMENT CREDITS APPROVED BY THE CONSERVA-
TION EASEMENT CREDIT APPROVAL BOARD;
(D) VALUE OF USED CONSERVATION EASEMENT CREDITS BY CLASS (ELIGIBLE
DONORS OR TRANSFEREES).
(E) ACREAGE OF QUALIFIED REAL PROPERTY INTERESTS DONATED APPROVED BY
THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD, BY DONEE CLASS (LAND
TRUST, GOVERNMENT, OTHER).
(J) THE FOLLOWING AGENCIES SHALL HAVE THE FOLLOWING RULEMAKING POWER:
(1) THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL PROMULGATE
RULES FOR THE IMPLEMENTATION OF THE APPROVAL SCREEN PURSUANT TO PARA-
GRAPH (I) OF THIS SUBDIVISION. SUCH RULES SHALL BE PROMULGATED IN
ACCORDANCE WITH THE STATE'S ADMINISTRATIVE PROCEDURE ACT STATUTE.
(2) THE DEPARTMENT SHALL PROMULGATE ALL OTHER RULES AND REGULATIONS
NECESSARY TO IMPLEMENT AND ADMINISTER THIS SUBDIVISION.
(K) REGISTRATION OF NOT-FOR-PROFIT ORGANIZATION. THE DEPARTMENT OF
ENVIRONMENTAL CONSERVATION SHALL PROMULGATE ALL RULES AND REGULATIONS
NECESSARY TO DEVELOP A REGISTRATION AND CERTIFICATION SYSTEM FOR
NON-PROFIT ORGANIZATIONS TO BE ELIGIBLE FOR CREDIT UNDER THIS SUBDIVI-
SION. ONE REQUIREMENT MUST BE THAT THE NOT-FOR-PROFIT ADOPT THE LAND
TRUST ALLIANCE "BEST STANDARDS AND PRACTICES". SUCH REGISTRATION MAY BE
REVOKED BY THE CONSERVATION EASEMENT CREDIT APPROVAL BOARD, THE DEPART-
MENT OF ENVIRONMENTAL CONSERVATION OR THE ATTORNEY GENERAL UPON A FIND-
ING THAT THE NOT-FOR-PROFIT ORGANIZATION WILLFULLY AND WITH THE INTENT
TO DEFRAUD CREATED AN EASEMENT THAT DOES NOT MATCH THE VALUE OF THE
CREDIT RECEIVED.
S 4. Section 606 of the tax law is amended by adding a new subsection
(ww) to read as follows:
(WW) CONSERVATION, OPEN SPACE AND FARMLAND PROTECTION CREDIT. (1) AN
ELIGIBLE DONOR WHO DONATES QUALIFIED REAL PROPERTY INTEREST FOR A QUALI-
FIED CONSERVATION PURPOSE TO AN ELIGIBLE DONEE SHALL BE ALLOWED A CREDIT
OWNED BY SUCH TAXPAYER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) THE VALUE OF THE CREDIT SHALL EQUAL FIFTY PERCENT OF THE FAIR
MARKET VALUE OF THE QUALIFIED REAL PROPERTY DONATION CALCULATED TO
EXCLUDE ANY SHORT TERM CAPITAL GAIN PURSUANT TO 26 U.S.C.A. S 170(E)
(1)(A). THE AMOUNT OF THE TAX CREDIT SHALL NOT EXCEED ONE HUNDRED THOU-
SAND DOLLARS FOR ANY CONTIGUOUS PARCELS OF LAND OWNED BY THE SAME LAND-
OWNER, OR AN ENTITY IN WHICH THE LANDOWNER HAS AN INTEREST.
(3) FOR PURPOSES OF THIS SUBSECTION A QUALIFIED REAL PROPERTY INTEREST
MEANS A CONSERVATION EASEMENT AS DEFINED IN ARTICLE FORTY-NINE OF THE
ENVIRONMENTAL CONSERVATION LAW AND THE REGULATIONS PROMULGATED THERE-
UNDER OR A FULL REAL PROPERTY INTEREST AS DEFINED UNDER 26 U.S.C.A. S
170(H)(2) AND CORRESPONDING REGULATION IN 26 C.F.R. S 170-A-14(B).
EITHER INTEREST MUST BE IN FULLY INSTATE LAND. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, A GOLF COURSE DOES NOT QUALIFY AS A CONSERVATION EASE-
MENT FOR PURPOSES OF THIS SUBSECTION.
(4) FOR PURPOSES OF THIS SUBSECTION AN "ELIGIBLE DONEE" MEANS A
"PUBLIC BODY" OR A "NOT-FOR-PROFIT CONSERVATION ORGANIZATION" AS DEFINED
IN ARTICLE FORTY-NINE OF THE ENVIRONMENTAL CONSERVATION LAW. IN ADDI-
TION, TO QUALIFY AS AN ELIGIBLE DONEE A "NOT-FOR-PROFIT CONSERVATION
S. 5522 6
ORGANIZATION" MUST BE REGISTERED WITH THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION.
(5) ELIGIBLE DONOR MEANS ANY PERSON OR ENTITY WHO OWNS A QUALIFIED
REAL PROPERTY INTEREST, INCLUDING INDIVIDUALS, CORPORATIONS, TRUSTS AND
ESTATES, PARTNERS IN PARTNERSHIPS AND OTHER FLOW THROUGH ENTITIES, AND
BOTH MARRIAGE PARTNERS.
(6) ANY QUALIFIED DONOR HOLDING A PRE-APPROVED CONSERVATION EASEMENT
CREDIT MAY SELL OR TRANSFER IN PART, OR IN FULL, THE CONSERVATION EASE-
MENT CREDIT TO ANOTHER PERSON OR ENTITY FOR USE AGAINST TAX IMPOSED
UNDER THIS ARTICLE. IN ORDER FOR THE TRANSFEREE OR PURCHASER TO APPLY
THE CONSERVATION EASEMENT TAX CREDIT AGAINST TAXES FOR A PARTICULAR
YEAR, THE TRANSFEREE MUST HAVE ACQUIRED THE CONSERVATION EASEMENT TAX
CREDIT ON OR BEFORE THE DATE UPON WHICH THE TRANSFEREE'S TAXES ARE DUE
(WITHOUT EXTENSIONS) FOR THE YEAR IN QUESTION.
(7) LIMITATIONS ON USE OF CONSERVATION EASEMENT CREDITS. (A) THE
CONSERVATION EASEMENT CREDIT MAY NOT BE USED, BY AMENDMENT OR OTHERWISE,
AGAINST TAXES OWING FOR TAX YEARS PRIOR TO THE YEAR IN WHICH THE CONSER-
VATION EASEMENT CREDIT WAS EARNED OR ACQUIRED BY THE TAXPAYER.
(B) ONLY ONE CONSERVATION EASEMENT CREDIT MAY BE EARNED PER QUALIFIED
REAL PROPERTY INTEREST DONATION:
(I) IF THE QUALIFIED REAL PROPERTY INTEREST IS HELD IN COMMON OWNER-
SHIP, THE CONSERVATION EASEMENT CREDIT SHALL BE ALLOCATED IN PROPORTION
TO RESPECTIVE OWNERSHIP SHARES.
(II) IF THE QUALIFIED REAL PROPERTY INTEREST IS HELD BY A PASS-THROUGH
ENTITY, THE CONSERVATION EASEMENT CREDIT SHALL BE ALLOCATED AS
PRESCRIBED UNDER 26 U.S.C.A. S 704(B) AND CORRESPONDING REGULATIONS IN
26 C.F.R. S 1.704A-1(B)(4)(II).
(C) AN ELIGIBLE DONOR MAY EARN ONLY ONE CONSERVATION EASEMENT CREDIT
PER INCOME TAX YEAR.
(D)(I) THE CREDIT SHALL ONLY APPLY FOR TEN YEARS FOLLOWING THE QUALI-
FIED REAL PROPERTY DONATION.
(II) IN DETERMINING ANY CARRY-FORWARD AMOUNT, THE FOLLOWING RULES
APPLY: (I) THE AMOUNT OF CONSERVATION EASEMENT CREDIT USED IN A TAXABLE
YEAR, WHEN COMBINED WITH ALL OTHER STATE INCOME TAX CREDITS OF THE USER,
MAY NOT EXCEED THE USER'S TOTAL STATE TAX LIABILITY FOR THE TAXABLE
YEAR.
(II) ANY UNUSED PORTION OF CONSERVATION EASEMENT CREDIT MAY BE CARRIED
FORWARD UP TO TEN YEARS. ANY UNUSED PORTION OF A CONSERVATION EASEMENT
CREDIT SHALL SURVIVE THE DEATH OF THE INDIVIDUAL AND MAY BE USED OR
TRANSFERRED BY THE DECEDENT'S ESTATE.
(8) APPROVAL PROCESS. CREDITS UNDER THIS SUBSECTION SHALL BE DETER-
MINED IN ACCORDANCE WITH THE PROCEDURES, RULES AND PROVISIONS SET FORTH
IN PARAGRAPHS (H), (I), (J) AND (K) OF SUBDIVISION FORTY-SEVEN OF
SECTION TWO HUNDRED TEN OF THIS CHAPTER.
S 5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.