GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION
CHAPTER 716
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-130.34 reads as rewritten:
"§ 105-130.34. Credit for certain real property donations.
(a) Any corporation that
makes a qualified donation of interest in real property located in North
Carolina during the taxable year that is useful for public beach access or use,
public access to public waters or trails, fish and wildlife conservation, or
other similar land conservation purposes, shall be allowed a credit against the
taxes imposed by this Division equal to twenty-five percent (25%) of the fair
market value of the donated property interest. To be eligible for this credit,
the interest in real property must be donated to and accepted by either the
State, local government or a body that is both organized to receive and
administer lands for conservation purposes and is qualified to receive
charitable contributions pursuant to G.S. 105-130.9; provided, however, that
lands required to be dedicated pursuant to local governmental regulation or
ordinance and dedications made to increase building density levels permitted
under such regulations or ordinances shall not be eligible for this credit. The
credit allowed under this section may not exceed five thousand dollars
($5,000). twenty-five thousand dollars ($25,000). To support
the credit allowed by this section, the taxpayer shall file with its income tax
return for the taxable year in which the credit is claimed, a certification by
the Department of Natural Resources and Community Development that the property
donated is suitable for one or more of the valid public benefits set forth in
this subsection.
(b) The credit allowed by this section may not exceed the amount of tax imposed by this Division for the taxable year reduced by the sum of all credits allowed under this Division, except payments of tax made by or on behalf of the taxpayer.
(c) Any unused portion of this credit may be carried forward for the next succeeding five years.
(d) The fair market value, or any portion thereof, of a qualifying donation that is not eligible for a credit pursuant to this section may be considered as a charitable contribution pursuant to G.S. 105-130.9. That portion of the donation allowed as a credit pursuant to this section shall not be eligible as a charitable contribution."
Sec. 2. G.S. 105-151.12 reads as rewritten:
"§ 105-151.12. Credit for certain real property donations.
(a) Any person that makes
a qualified donation of interests in real property located in North Carolina
during the taxable year that is useful for public beach access or use, public
access to public waters or trails, fish and wildlife conservation, or other
similar land conservation purposes, shall be allowed a credit against the taxes
imposed by this Division equal to twenty-five percent (25%) of the fair market
value of the donated property interest. To be eligible for this credit, the
interest in property must be donated to and accepted by either the State, local
government or a body that is both organized to receive and administer lands for
conservation purposes and is qualified to receive charitable contributions
pursuant to G.S. 105-147(15) or (16); provided, however, that lands required to
be dedicated pursuant to local governmental regulation or ordinance and
dedications made to increase building density levels permitted under such
regulations or ordinances shall not be eligible for this credit. The credit
allowed under this section may not exceed five thousand dollars ($5,000). twenty-five
thousand dollars ($25,000). To support the credit allowed by this
section, the taxpayer shall file with the income tax return for the taxable
year in which the credit is claimed, a certification by the Department of
Natural Resources and Community Development that the property donated is
suitable for one or more of the valid public benefits set forth by this
subsection.
(b) The credit allowed by this section may not exceed the amount of tax imposed by this Division for the taxable year reduced by the sum of all credits allowed under this Division, except payments of tax made by or on behalf of the taxpayer.
(c) Any unused portion of this credit may be carried forward for the next succeeding five years.
(d) The fair market value, or any portion thereof, of a qualifying donation that is not eligible for a credit pursuant to this section may be considered as a charitable contribution pursuant to G.S. 105-147(15) or (16). That portion of the donation allowed as a credit pursuant to this section shall not be eligible as a charitable contribution.
(e) In the case of property owned by the entirety, where both spouses are required to file North Carolina income tax returns, each spouse may claim one half of the credit allowed by this section or one spouse may claim the entire credit allowed by this section by agreement with the other spouse, provided both spouses were living together at the end of the taxable year and file their separate returns for the taxable year on the combined form. Where only one spouse is required to file a North Carolina income tax return, such spouse may claim the credit allowed by this section.
(f) In the case of marshland for which a claim has been filed pursuant to G.S. 113-205, the offer of donation must be made before December 31, 1990, to qualify for the credit allowed by this section."
Sec. 3. This act is effective for taxable years beginning on or after January 1, 1989.
In the General Assembly read three times and ratified this the 3rd day of August, 1989.