PETITION OF:

SECTION 1. This Act shall be known as the Massachusetts Land Conservation Incentives Act of 1999.

   SECTION 2. (a) The Commonwealth of Massachusetts’s unique natural resources, wildlife habitats, open spaces, agricultural resources, and historic resources are of significant benefit to the state and the public; and
            (b) The Commonwealth of Massachusetts’s unique natural resources and distinctive natural heritage including habitat for plants, animals and natural communities, are being lost at an alarming rate; and
            (c) Much of the Commonwealth of Massachusetts’s unique natural and historical resources and habitats are found on lands which are privately owned; and
            (d) The legislature desires to encourage private landowners to be stewards of lands which are important habitat or designated natural areas or which contain significant natural, open space, and historic resources; and
            (e) The Commonwealth desires to complement existing land conservation restriction programs under the Massachusetts Conservation Restriction Act, as set forth in Sections 31-33 of Chapter 184 of the Massachusetts General Laws, and not duplicate them and thereby preserve public financial resources and leverage public expenditures; and
            (f) The Commonwealth desires to provide private landowners with incentives to encourage protection of private lands for open space, natural resources, biodiversity conservation, and outdoor recreation, agricultural preservation, historic preservation and land preservation purposes.

   SECTION 3. Definition. The following definitions shall apply to this Act:
            (a) “Interest in real property” means any right in real property, or improvements thereto, or water including but not limited to a fee simple, easement, partial interest, mineral right, remainder, future interest, lease, license or covenant of any sort, or other interest or right concerning the use of or power to transfer
property.
            (b) “Land” or “lands” means real property, with or without improvements thereon; right of way, water and riparian rights; easements; privileges and all other rights or interest of any land or description in, relating to or connected with real property.
            (c) “Public or Private Conservation Agency” means any Massachusetts governmental body, or any private not-for-profit charitable corporation or trust authorized to do business in the Commonwealth of Massachusetts and organized and operated for natural resources, land conservation or historic preservation purposes, and having tax-exempt status as a public charity under the U.S. Internal Revenue Code of 1986, as amended, and having the power to acquire, hold and maintain land and/or interests in land for such purposes.

      SECTION 4. Tax Credit Available. Amend Section 6 of Chapter 62 of the Massachusetts General Laws by adding thereto the following:—
            (j) Land Conveyed for Conservation and Preservation Purposes. There shall be allowed as a credit against the tax liability imposed by this chapter, an amount equal to 50% of the fair market value of any land or interest in land located in Massachusetts which is conveyed for the purpose of open space, natural resource, and/or biodiversity conservation, or land, agricultural, watershed and/or historic preservation, as an unconditional donation in perpetuity by the landowner/taxpayer to a public or private conservation agency eligible to hold such land and interests therein for conservation or preservation purposes. The fair market value of qualified donations made under this section shall be substantiated by a “qualified appraisal” prepared by a “qualified appraiser”, as those terms are defined under applicable Federal law and regulations governing charitable contributions.
            (1) The amount of the credit that may be claimed by a taxpayer shall not exceed $50,000 or $10,000 whichever is less. In addition, in any one tax year the credit used may not exceed the amount of individual or corporate income tax otherwise due. Any portion of the credit which is unused in any one tax year may be carried over for a maximum of five (5) consecutive tax years following the tax year in which the credit originated until fully expended.
            (2) Qualified donations shall include the conveyance in perpetuity of a fee interest in real property or a less-than-fee interest in real property, such as a conservation restriction, preservation restriction, agricultural preservation restriction, or watershed preservation restriction pursuant to Sections 31-33 of Chapter 184 of the Massachusetts General Laws. Dedications of land for open space for the purpose of fulfilling density requirements to obtain subdivision or building permits shall not be considered as qualified donations under the Massachusetts Land Conservation Incentives Act of 1999.
            (3) Qualified donations shall be eligible for the tax credit herein described if such donations are made to the Commonwealth of Massachusetts, an instrumentality thereof, or a charitable organization described in Section 501(c) of the U.S. Internal Revenue Code of 1986 and which: (a) meets the requirements of Section 509(a)(2) or; (b) meets the requirements of Section 509(a)(3) and is controlled by an organization described in Section 509(a)(2).
            (4) To be eligible for treatment as qualified donations under this Section, land, or interests in lands, must be certified by the secretary of the executive office of environmental affairs or the director of the Massachusetts historical commission as fulfilling the purposes as set forth in Section 2 of the Massachusetts Land Conservation Incentives Act of 1999. The use and protection of such lands, or interests therein, for open space, natural area protection, biodiversity habitat conservation, land preservation, agricultural preservation, historic preservation or similar use and purpose shall be assured in perpetuity.
            The following definitions shall apply to this section (j):
            (1) “Interest in real property” means any right in real property, or improvements thereto, or water including but not limited to a fee simple, easement, partial interest, mineral right, remainder, future interest, lease, license or covenant of any sort, or other interest or right concerning the use of or power to transfer
property.
            (2) “Land” or “lands” means real property, with or without improvements thereon; right of way, water and riparian rights; easements; privileges and all other rights or interest of any land or description in, relating to or connected with real property.
            (3) “Public or Private Conservation Agency” means any Massachusetts governmental body, or any private not-for-profit charitable corporation or trust authorized to do business in the Commonwealth of Massachusetts and organized and operated for natural resources, land conservation or historic preservation purposes, and having tax-exempt status as a public charity under the U.S. Internal Revenue Code of 1986, as amended, and having the power to acquire, hold and maintain land and/or interests in land for such purposes.

   SECTION 5. Administration.
            (a) The secretary of the executive office of environmental affairs (Secretary) and the director of the Massachusetts historical commission (Director) may promulgate such rules and regulations as may be deemed necessary to certify eligible projects for treatment in fulfillment of the purposes of this Act. The Secretary and Director, upon the three and five year anniversary of the enactment of this Act or any renewals thereof shall prepare a report to the Legislature showing the lands protected during such period pursuant to this Act.
            (b) The division of revenue of the executive office of administration and finance for the Commonwealth of Massachusetts, in consultation with the Secretary and Director, shall promulgate such rules and regulations as may be deemed necessary to administer the tax incentives provided for in this Act and shall coordinate with the agencies referenced in subsection (a) above in the preparation of the report(s) to the Legislature showing the fiscal impact on the Massachusetts Treasury of the credits claimed pursuant to this Act.

   SECTION 6. Applicability, Fiscal Limitation and Renewal.
            (a) The tax credits provided by this Act shall apply to transfers of land or interests therein in taxable years beginning on or before January 1, 2000 and all taxable years thereafter.
            (b) Any taxpayer claiming a tax credit under this Act may not claim a credit under any similar Massachusetts law for costs related to the same project. A taxpayer may not claim a tax credit under this Act for lands or interests in land, a portion of which constitutes the taxpayer’s entire holdings and where the taxpayer has sold or has contracted to sell to the Commonwealth of Massachusetts, an instrumentality thereof, or a private conservation agency the balance of such lands or interests in land for open space, biodiversity, land conservation or land preservation purposes.
            (c) Any tax credits which arise under this Act from the donation of land or an interest in land made by a pass-through tax entity such as a trust, estate, partnership, limited liability corporation or partnership, limited partnership, subchapter S corporation 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, manager, partner, shareholder and/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, manager, partner, shareholder and/or beneficiary. Such tax credits may not be claimed by both the entity and the member, manager, partner, shareholder and/or beneficiary for the same donation.

SECTION 7. Construction.
No part or segment of this Act shall be interpreted to in any way alter or amend any permit requirements, reporting requirements, allocation procedures, or other requirements set forth in any other provision of state law.