This bill introduces a gross income tax deduction for taxpayers who sell certain real property interests for conservation purposes. It allows taxpayers to deduct a portion of the consideration received from the sale of real property interests to qualified organizations, which can include governmental units and charitable non-profits involved in various conservation programs. The deduction applies to both full market value sales and bargain sales, where the latter involves a transaction where the seller receives less than the full market value, allowing for a combination of cash payment and charitable donation. The deduction amount is based on the capital gain realized for federal income tax purposes, and taxpayers can also claim a deduction for the charitable donation portion of a bargain sale.

Additionally, the bill amends existing law to clarify that taxpayers can receive deductions for the charitable donation portion of real property interests transferred as part of a bargain sale, alongside the deductions for qualified conservation contributions. This change aims to prevent developers from acquiring environmentally valuable land and to support both taxpayers and the broader community by promoting land preservation. The bill is set to take effect immediately and will apply to taxable years beginning after its enactment.

Statutes affected:
Introduced: 54A:3-6