This bill introduces a gross income tax deduction for taxpayers who sell certain real property interests to qualified organizations for conservation purposes. It allows deductions for both full market value sales and bargain sales, where the latter involves a transaction where the seller receives less than the full market value. The deduction amount is based on the capital gain realized by the taxpayer for federal income tax purposes. Additionally, the bill clarifies that taxpayers can still claim a deduction for a qualified conservation contribution for the same property interest if the relevant requirements are met.

The bill also amends existing law to explicitly allow taxpayers to claim a deduction for the charitable donation portion of a bargain sale of real property interests. This provision aims to encourage land preservation by providing tax relief to sellers, thereby preventing the potential loss of environmentally valuable land to developers. The qualified organizations eligible for these transactions include various governmental and non-profit programs focused on land and wildlife conservation, such as the Green Acres and Blue Acres programs, among others. The act is set to take effect immediately and will apply to taxable years beginning after its enactment.

Statutes affected:
Introduced: 54A:3-6