SF 3063

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; creating a credit for land 
  1.3             donated for conservation purposes; proposing coding 
  1.4             for new law in Minnesota Statutes, chapter 290. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [290.0676] [CREDIT FOR LAND DONATED FOR 
  1.7   CONSERVATION PURPOSES.] 
  1.8      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
  1.9   section, the following terms have the meanings given. 
  1.10     (b) "Interest in real property" means fee title or a 
  1.11  qualified real property interest as defined in section 170(h) of 
  1.12  the Internal Revenue Code. 
  1.13     (c) "Fair market value" of an interest in real property 
  1.14  means the value of the interest as determined by a "qualified 
  1.15  appraisal" prepared by a "qualified appraiser" as those terms 
  1.16  are defined in Code of Federal Regulations, title 26, section 
  1.17  1.170A-13. 
  1.18     (d) "Discount of the sale price" means the difference 
  1.19  between the fair market value of an interest in real property at 
  1.20  the time of sale and the sale price, if the price the interest 
  1.21  is sold for is lower. 
  1.22     (e) "Conservation purposes" means the conservation purposes 
  1.23  as defined in section 170(h)(4)(A)(i), (ii), and (iii) of the 
  1.24  Internal Revenue Code. 
  1.25     Subd. 2.  [CREDIT ALLOWED.] A taxpayer who donates an 
  2.1   interest in real property in this state for conservation 
  2.2   purposes may take a credit against the tax imposed by this 
  2.3   chapter in an amount equal to 50 percent of the fair market 
  2.4   value of the interest in real property.  A taxpayer who sells an 
  2.5   interest in real property for conservation purposes at a 
  2.6   discount of the sale price may take a credit against the tax 
  2.7   imposed by this chapter in an amount equal to 50 percent of the 
  2.8   value of the discount of the sale price. 
  2.9      Subd. 3.  [QUALIFICATION.] (a) To qualify for a credit 
  2.10  under this section the taxpayer must convey the interest in real 
  2.11  property to (1) the state of Minnesota or a special purpose unit 
  2.12  of government organized under chapter 103C or 103D, or (2) a 
  2.13  private organization as provided in section 501(c) of the 
  2.14  Internal Revenue Code that: 
  2.15     (i) meets the requirements of section 170(h)(3) of the 
  2.16  Internal Revenue Code; and 
  2.17     (ii) is organized and operated for one or more of the 
  2.18  conservation purposes specified in section 170(h)(4)(i), (ii), 
  2.19  and (iii) of the Internal Revenue Code. 
  2.20     (b) A taxpayer claiming the credit under this section shall 
  2.21  attach the following to the tax return on which the credit is 
  2.22  claimed: 
  2.23     (1) a certificate of acceptance from an organization 
  2.24  described in paragraph (a) verifying that the organization has 
  2.25  accepted the contribution; and 
  2.26     (2) a copy of a qualified appraisal by a qualified 
  2.27  appraiser as those terms are defined in Code of Federal 
  2.28  Regulations, title 26, section 1.170A-13. 
  2.29     (c) A donation or sale at a discount price qualifies for a 
  2.30  credit under this section only if it is a charitable 
  2.31  contribution within the meaning of section 170 of the Internal 
  2.32  Revenue Code. 
  2.33     Subd. 4.  [LIMITATION; CARRYOVER.] (a) The credit for the 
  2.34  taxable year shall not exceed the taxpayer's liability for tax 
  2.35  before the credit under this section or $100,000, whichever is 
  2.36  less. 
  3.1      (b) If the amount of the credit determined under this 
  3.2   section exceeds the limitation in paragraph (a), the excess is a 
  3.3   carryover to each of the five succeeding taxable years.  All of 
  3.4   the excess unused credit for the taxable year must be carried 
  3.5   first to the earliest of the taxable years to which the credit 
  3.6   may be carried and then to each successive year to which the 
  3.7   credit may be carried.  The unused credit that may be taken 
  3.8   under this paragraph in any year shall not exceed the lesser of 
  3.9   the taxpayer's liability for tax before the land donation credit 
  3.10  for the taxable year or $100,000. 
  3.11     Subd. 5.  [EXPIRATION.] The credit under this section 
  3.12  expires for contributions made after December 31, 2008. 
  3.13     [EFFECTIVE DATE.] This section is effective for 
  3.14  contributions made after the day following final enactment in 
  3.15  taxable years beginning after December 31, 2001.