Mr. Jones of North Reading, Ms. Rogeness of Longmeadow, Mr. Peterson of Grafton, Mr. Lepper of Attleboro, and Mr. deMacedo of Plymouth move that the bill be amended by adding at the end thereof the following section:--
SECTION ___.
(A)Section 6 of Chapter 62 of the general laws, as appearing in the 2004 Official Edition, is hereby amended by adding the following new subsection: -
(l) Land Conveyed for Conservation Purposes. There shall be allowed as a credit against the tax liability imposed by this chapter, an amount equal to fifty percent of the fair market value of any qualified donation of certified land located in Massachusetts, by a landowner taxpayer to a public or private conservation agency.
(1)As used in this subsection the following words shall have the following meanings:
(I) “Bargain sale,” shall mean the sale of an interest in real property by a taxpayer at a cost below appraised market value, when a portion of the value of the interest in real property is a qualified donation, as such terms are defined herein, and which meets the requirements of Section 1011(b) of the Internal Revenue Code of 1986, as amended.
(II) "Certified land" or "certified lands," shall mean an interest in real property, as defined herein, the donation or bargain sale of which, as defined herein, has first been determined by the secretary of the executive office of environmental affairs to be in the public interest for natural resource protection, including, but not limited to, drinking water supplies, wildlife habitat and biological diversity, agricultural and forestry production, recreational opportunities, archaeological and historical resources, or scenic and cultural values. The secretary of environmental affairs shall assure that all certified lands are protected in perpetuity.
(III) "Interest in real property," shall mean any right in real property in the Commonwealth of Massachusetts, with or without improvements thereon, or water, including, but not limited to, fee simple, life estate, restriction, easement, covenant, condition, partial interest, remainder, future interest, lease, license, mineral right, riparian right, or other interest or right in real property that may be conveyed concerning the power to transfer property.
(IV) "Public or Private Conservation Agency," shall mean the Commonwealth of Massachusetts, or any subdivision thereof, or private nonprofit corporation organized for the purposes of land conservation, which is authorized to do business in the Commonwealth of Massachusetts, and which has tax-exempt status as a nonprofit charitable organization as described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
(V) “Qualified donation,” shall mean a donation, or the donated portion of a bargain sale, made in perpetuity of a fee interest in real property or a less-than-fee interest in real property, including a conservation restriction, agricultural preservation restriction or watershed preservation restriction, pursuant to chapter 184 of the general laws, provided that such less-than-fee interest meets the requirements of Qualified Conservation Contributions under the Internal Revenue Code of 1986, Section 170(h).
(VI) “Taxpayer” shall mean a taxpayer subject to income tax under chapter 62 of the general laws or a taxpayer subject to excise tax under chapter 63 of the general laws.
(2) The fair market value of certified land shall be substantiated by a Qualified Appraisal, as defined in United States Treasury Regulation Section 1.170A-13(c)(3), and shall be prepared by a Qualified Appraiser, as defined in United States Treasury Regulation Section 1.170A-13(c)(5). For any taxpayer to qualify for the credit provided for in this subsection, the taxpayer shall file with the Massachusetts Department of Revenue at the same time as the taxpayer files a return for the taxable year in which the credit is claimed, a summary of a Qualified Appraisal, or if requested by said Department, the taxpayer shall submit the appraisal itself.
(3) The amount of the credit that may be claimed by a taxpayer for each qualified donation shall not exceed fifty thousand dollars.
(4) In any one tax year the credit used may not exceed the amount of individual or corporate excise tax otherwise due by the taxpayer.
(5) Any portion of the credit, which is unused in any one tax year, may be carried over for a maximum of ten consecutive tax years following the tax year in which the credit originated until fully expended.
(6) The secretary of environmental affairs shall promulgate regulations that define land eligible for certification under this subsection. Regulations shall be promulgated within ninety days of passage of this Act.
(7)The commissioner of the department of revenue, in consultation with the secretary of environmental affairs, shall promulgate regulations to administer this subsection. Such regulations shall include provisions to prevent the generation of multiple credits with respect to the same property. Regulations shall be promulgated within one hundred and twenty days of passage of this act.
(8) The tax credits provided by this subsection shall apply to transfers of interests in real property in taxable years beginning on or after January 1, 2006 and consecutive taxable years thereafter.
(9) The tax credits provided by this subsection may be in addition to any charitable deductions claimed on the taxpayer’s federal income tax return for the same qualified donations of certified lands.
(10) Any taxpayer claiming a state income tax or excise tax credit under this subsection may not claim an additional state income tax or excise tax credit during any one tax year for costs related to the same interest in certified lands.
(11) Any tax credits which arise under this subsection from the qualified donation of certified land by a pass-through tax entity such as a trust, estate, partnership, corporation, limited partnership, limited liability partnership, limited liability corporation, subchapter S organization, or other fiduciary, shall be used either by such entity in the event it is the taxpayer on behalf of such entity or by the member, partner, shareholder, or beneficiary, as the case may be, in proportion to their interest in such entity in the event that income, deductions, and tax liability passes through such entity to such member, partner, shareholder, or beneficiary. Such tax credits may not be claimed by both the entity and the member, partner, shareholder, or beneficiary, for the same conveyance.
(12) Any tax credits which arise under this subsection from the qualified donations of certified land by a married couple shall be used only if the spouses file a joint return, if both spouses are required to file Massachusetts income tax returns. If only one spouse is required to file a Massachusetts income tax return, that spouse may claim the credit allowed by this subsection on a separate return.
(13) Nothing in this subsection shall be interpreted in any way to alter or amend any permitting requirements, reporting requirements, allocation procedures, or other requirements set forth in any other provision of the General Laws.
(B) The secretary of the executive office of environmental affairs, within five years of passage of this section, shall prepare a report to the joint committee on revenue and the joint committee on environment, natural resources and agriculture, describing the certified lands conserved.
(C) The commissioner of the department of revenue, within five years of passage of this section, shall prepare a report to the joint committee on revenue and the joint committee on environment, natural resources and agriculture, calculating the annual tax savings to individuals and corporations.
(D). There shall be a commission to study the transferability of tax credits under this subsection. The commission shall be composed of 11 persons, including the commissioner of the department of agricultural resources, or his designee, who shall serve as chairman; the commissioner of the department of revenue, or his designee; three members of the house of representatives, two to be appointed by the speaker of the house of representatives and one to be appointed by the house minority leader; three members of the senate, two to be appointed by the president of the senate and one to be appointed by the senate minority leader; a representative of the American Farmland Trust; a representative of the Massachusetts Audubon Society; and a representative of the Massachusetts Chapter of The Nature Conservancy. The commission shall examine all aspects of transferability, including but not limited to: the status of its application in other states, potential fiscal impacts, and potential conservation benefits. The commission shall file a report of its findings and recommendations, including any drafts of legislation necessary to put its recommendations into effect, with the joint committee on revenue and joint committee on environment, natural resources and agriculture on or before January 1, 2007.