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 if they meet the necessary requirements, even if the property was sold as part of a bargain sale.

Furthermore, the bill amends existing law to explicitly allow taxpayers to claim a deduction for the charitable donation portion of a real property interest that is transferred as part of a bargain sale. This provision aims to encourage the preservation of environmentally valuable land by providing tax incentives for both the cash and donation components of such transactions. The qualified organizations eligible for these deductions include various governmental and non-profit programs focused on land preservation and conservation, such as the Green Acres and Blue Acres programs, among others. The bill is set to take effect immediately and will apply to taxable years beginning after its enactment.

Statutes affected:
Introduced: 54A:3-6