BILL DRAFT 2003-RIz-ll [v.S] (5/7) 

 Tax Credit fior Certain Real Prop. Donations 



1 A BILL TO BE ENTITLED 



2 AN ACT TO RECODIFY THE CREDIT FOR CERTAIN REAL PROPERTY 



3 DONATIONS AND TO INCREASE THE CiuiDIT FOR CERTAIN 



4 PASS-THROUGH ENTITIES, AS RECOMMENDED BY THE 



5 ENVIRONMENTAL REVIEW COMMISSION. 



6 The General Assembly of North Carolina enacts: 



7 SECTION 1. Article 4 of Chapter 1 05 of the General Statutes is amended 



8 by adding a new Part to read: 



9 " Part 6. Tax Credit for Certain Real Property Donations. 



10 " S 105-163.021. Tax credit aUowed. 



11 (a) Qualified donation. - A person who makes a qualified donation of an interest 



12 in real property located in North Carolina during the taxable year that is useful for (i) 



13 public beach access or use, (ii) public access to public waters or trails, (iii) fish and 



14 wildhfe conservation, or (iv) other similar land conservation purposes is allowed a 



15 credit against the tax imposed by Article 4 of this Chapter equal to twenty-five percent 



16 (25%) of the fair market value of the donated property interest. To be ehgible for this 



17 credit, the interest in property must be donated in perpetuity to and accepted by the 



18 State, a local government, or a body that is both organized to receive and administer 



19 lands for conservation purposes and quaUfied to receive charitable contributions under 



20 the Code. Lands required to be dedicated pursuant to local eovemmental regulation or 



21 ordinance and dedications made to increase building density levels permitted under a 



22 regulation or ordinance are not eligible for this credit. To support the credit allowed by 



23 this section, the taxpayer must file with the income tax return for the taxable year in 



24 which the credit is claimed a certification by the Department of Environment and 



25 Natural Resources that the property donated is suitable for one or more of the valid 



26 public benefits set forth in this subsection. The certification for a quaUfied donation 



27 made by a pass-through entity must be filed by the pass-through entity. 



23 



