This bill amends the existing tax credit provisions related to the conveyance of property for conservation or preservation purposes under both the Income Tax Act and the Corporate Income and Franchise Tax Act. It increases the percentage of the fair market value of land that can be claimed as a tax credit from fifty percent to either fifty percent for land conveyed before July 1, 2026, or eighty percent for land conveyed on or after that date. Additionally, the bill establishes new maximum credit limits: $100,000 for conveyances made prior to January 1, 2008; $250,000 for those made between January 1, 2008, and July 1, 2026; and $2,000,000 for conveyances made on or after July 1, 2026. The bill also stipulates that the credits will be refundable, allowing taxpayers to receive a refund for any portion of the credit that exceeds their tax liability.

Furthermore, the bill clarifies the eligibility criteria for claiming these credits, including the requirement for a "qualified appraisal" to substantiate the fair market value of the donations. It specifies that multiple taxpayers who are record owners of a qualified donation can claim credits proportionate to their ownership interests, and it limits the total credit claimed by all owners to the value that would accrue if the donation was made by a single owner. The bill also includes provisions for the certification of eligibility by the secretary of energy, minerals, and natural resources, and outlines the process for applying for the tax credit. Overall, the changes aim to incentivize property donations for conservation purposes while ensuring proper oversight and valuation of such contributions.

Statutes affected:
introduced version: 7-2-18.10, 7-2A-8.9