S3631-2013 - NY Senate Open Legislation - Makes technical corrections to the conservation easement tax credit

Makes technical corrections to the conservation easement tax credit.

Sponsor: MARCELLINO / Committee: WAYS AND MEANS
Law Section: Tax Law / Law: Amd SS606 & 210, Tax L

S3631-2013 Actions

May 8, 2013: referred to ways and means
May 8, 2013: DELIVERED TO ASSEMBLY
May 8, 2013: PASSED SENATE
Apr 22, 2013: ADVANCED TO THIRD READING
Apr 17, 2013: 2ND REPORT CAL.
Apr 16, 2013: 1ST REPORT CAL.312
Feb 7, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S3631-2013 Meetings

Investigations and Government Operations: Apr 16, 2013

S3631-2013 Calendars

Active List: May 8, 2013 , Floor Calendar: Apr 17, 2013 , Floor Calendar: Apr 22, 2013 , Floor Calendar: Apr 23, 2013 , Floor Calendar: Apr 24, 2013 , Floor Calendar: Apr 29, 2013 , Floor Calendar: Apr 30, 2013 , Floor Calendar: May 1, 2013 , Floor Calendar: May 6, 2013 , Floor Calendar: May 7, 2013 , Floor Calendar: May 8, 2013

S3631-2013 Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Apr 16, 2013

Ayes (9): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Zeldin, Hoylman, Diaz, Squadron

VOTE: FLOOR VOTE: - May 8, 2013

Ayes (57): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Latimer, LaValle, Libous, Marcellino, Marchione, Martins, Maziarz, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sanders, Savino, Serrano, Seward, Skelos, Smith, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Absent (2): Sampson, Squadron
Excused (4): Gallivan, Larkin, Little, Montgomery

S3631-2013 Memo

BILL NUMBER:S3631

TITLE OF BILL:  An act to amend the tax law, in relation to making tech-
nical corrections to the conservation easement tax credit

PURPOSE: To make a technical correction to paragraph 1 of subsection
(kk) of section 606 of the tax law, as added by section 1 of Part F of
Chapter 62 of the laws of 2006.

SUMMARY OF PROVISIONS: Section 1 and 2 make technical corrections to
Chapter 62 of the laws of 2006 to allow the tax credit to be applied to
all classifications of land subject to the easement, including village
taxes.

JUSTIFICATION: An income tax credit for real property taxes paid on land
under a conservation easement will help landowners bear the annual
carrying costs of land that provides multiple public benefits.  This
income tax credit will have a large impact on those landowners who have
modest incomes and are unlikely to benefit significantly from existing
tax deductions. An income tax credit will provide them with an incentive
to make a gift to perpetually conserved land that they otherwise could
not afford to make.

LEGISLATIVE HISTORY:  2011-12:S. 4088-A Passed Senate/A. 9653 Ways and
Means 2009-10:S. 866 Investigations and Government Operations/A. 5876
Ways and Means 2007-08:S. 4368-A Passed Senate/A. 7134-B Passed Assem-
bly-2008 Governor's Veto #9.

FISCAL IMPLICATIONS: Minimal.

EFFECTIVE DATE: This act shall take effect immediately and shall be made
applicable to taxable years commencing on and after January 1, 2014 and
thereafter.

S3631-2013 Text

 S T A T E   O F   N E W   Y O R K
 
                                          3631
 2013-2014 Regular Sessions
 I N  SENATE
 February 7, 2013
 
 Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
 when printed to be committed to the Committee  on  Investigations  and
 Government Operations
 

AN ACT to amend the tax law, in relation to making technical corrections
 to the conservation easement tax credit
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Paragraph 1 of subsection (kk) of section 606  of  the  tax
 law,  as added by section 1 of part F of chapter 62 of the laws of 2006,
 is amended to read as follows:

 (1) Credit allowed. In the case of a taxpayer who owns  land  that  is
 subject to a conservation easement held by a public or private conserva
 tion  agency, there shall be allowed a credit for twenty-five percent of
 the [allowable school district, county and  town]  real  property  taxes
 PAID  on  [such]  THE  land,  OR  PORTION  OF  THE  LAND, SUBJECT TO THE
 EASEMENT. In no event shall the credit allowed under this subsection  in
 combination  with any other credit for [such school district, county and
 town] real property taxes under this section exceed such taxes.
 

S 2. Subdivision 38 of section 210 of the tax law, as added by section
 3 of part F of chapter 62 of the laws of 2006, is renumbered subdivision
 46 and is amended to read as follows:

 46. Conservation easement tax credit. (1) Credit allowed. In the  case
 of  a  taxpayer who owns land that is subject to a conservation easement
 held by a public or private conservation agency, there shall be  allowed
 a  credit  for  twenty-five  percent  of the [allowable school district,
 county and town] real property taxes PAID on [such] THE land, OR PORTION
 OF THE LAND, SUBJECT TO THE EASEMENT. In no such case shall  the  credit
 allowed  under this subdivision in combination with any other credit for
 [such school district, county and town] real property taxes  under  this
 section exceed such taxes.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD07849-01-3
        S. 3631                             2
 (2)  Conservation easement. For purposes of this subdivision, the term
 "conservation easement" means a  perpetual  and  permanent  conservation
 easement as defined in article forty-nine of the environmental conserva
 tion  law  that serves to protect open space, scenic, natural resources,
 biodiversity,   agricultural,  watershed  and/or  historic  preservation
 resources. Any conservation easement for which a tax credit  is  claimed
 under  this  subdivision  shall be filed with the department of environ
 mental conservation, as provided for in article forty-nine of the  envi
 ronmental  conservation  law and such conservation easement shall comply
 with the provisions of title three of such article, and  the  provisions
 of  subdivision  (h)  of section 170 of the internal revenue code. Dedi
 cations of land for open space through  the  execution  of  conservation
 easements  for  the purpose of fulfilling density requirements to obtain
 subdivision or building permits shall not be considered  a  conservation
 easement under this subdivision.
 (3)  Land.  For  purposes of this subdivision, the term "land" means a
 fee simple title to real property located in this state, with or without
 improvements thereon; rights of way; water and  riparian  rights;  ease
 ments;  privileges  and  all  other  rights  or interests of any land or
 description in, relating to or connected with real  property,  excluding
 buildings, structures, or improvements.
 (4) Public or private conservation agency. For purposes of this subdi
 vision,  the  term  "public  or  private  conservation agency" means any
 state, local, or federal governmental body; or any private  not-for-pro
 fit  charitable  corporation or trust which is authorized to do business
 in the state of New York, is organized and operated to protect land  for
 natural  resources,  conservation  or historic preservation purposes, is
 exempt from federal income  taxation  under  section  501(c)(3)  of  the
 internal  revenue  code, and has the power to acquire, hold and maintain
 land and/or interests in land for such purposes.
 (5) Credit limitation. The amount of the credit that may be claimed by
 a taxpayer pursuant to this subsection shall not  exceed  five  thousand
 dollars in any given year.
 (6)  Application of the credit. The credit allowed under this subdivi
 sion for any taxable year shall not reduce the tax due for such year  to
 less than the higher of the amounts prescribed in paragraphs (c) and (d)
 of subdivision one of this section. However, if the amount of the credit
 allowed  under  this subdivision for any taxable year reduces the tax to
 such amount, any amount of the credit thus not deductible in such  taxa
 ble  year  shall  be  treated as an overpayment of tax to be credited or
 refunded in accordance with the provisions of subsection (c) of  section
 [ten hundred] ONE THOUSAND eighty-eight of this chapter, except that, no
 interest shall be paid thereon.
 

S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new clause (xxxiv-a)  to  read  as
 follows:

 (XXXIV-A) CONSERVATION EASEMENT      AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION (KK)     SUBDIVISION FORTY-SIX OF
 SECTION TWO HUNDRED TEN
 

S 4. This act shall take effect immediately and shall be made applica
 ble  to taxable years commencing on and after January 1, 2014 and there
 after.

S3631-2013: Makes technical corrections to the conservation easement tax credit