House File 2080 - Introduced
HOUSE FILE
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HF 902)
(SUCCESSOR TO HF 832)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for individual and corporate income tax credits
2 for the charitable conveyance of real property for
3 conservation purposes and including a retroactive
4 applicability date provision.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. NEW SECTION. 422.11V CHARITABLE CONSERVATION
1 2 CONTRIBUTION TAX CREDIT.
1 3 1. The taxes imposed under this division, less the credits
1 4 allowed under section 422.12, shall be reduced by a charitable
1 5 conservation contribution tax credit equal to fifty percent of
1 6 the fair market value of a qualified real property interest
1 7 located in the state that is conveyed as an unconditional
1 8 charitable donation in perpetuity by the taxpayer to a
1 9 qualified organization exclusively for conservation purposes.
1 10 The maximum amount of tax credit is one hundred thousand
1 11 dollars. The amount of the contribution for which the tax
1 12 credit is claimed shall not be deductible in determining
1 13 taxable income for state tax purposes.
1 14 2. For purposes of this section, "conservation purpose",
1 15 "qualified organization", and "qualified real property
1 16 interest" mean the same as defined for the qualified
1 17 conservation contribution under section 170(h) of the Internal
1 18 Revenue Code, except that a conveyance of land for open space
1 19 for the purpose of fulfilling density requirements to obtain
1 20 subdivision or building permits shall not be considered a
1 21 conveyance for a conservation purpose.
1 22 3. Any credit in excess of the tax liability is not
1 23 refundable but the excess for the tax year may be credited to
1 24 the tax liability for the following twenty tax years or until
1 25 depleted, whichever is the earlier.
1 26 4. An individual may claim the tax credit allowed a
1 27 partnership, limited liability company, S corporation, estate,
1 28 or trust electing to have the income taxed directly to the
1 29 individual. The amount claimed by the individual shall be
1 30 based upon the pro rata share of the individual's earnings of
1 31 the partnership, limited liability company, S corporation,
1 32 estate, or trust.
1 33 Sec. 2. Section 422.33, Code Supplement 2007, is amended
1 34 by adding the following new subsection:
1 35 NEW SUBSECTION. 25. a. The taxes imposed under this
2 1 division shall be reduced by a charitable conservation
2 2 contribution tax credit equal to fifty percent of the fair
2 3 market value of a qualified real property interest located in
2 4 the state that is conveyed as an unconditional charitable
2 5 donation in perpetuity by the taxpayer to a qualified
2 6 organization exclusively for conservation purposes. The
2 7 maximum amount of tax credit is one hundred thousand dollars.
2 8 The amount of the contribution for which the tax credit is
2 9 claimed shall not be deductible in determining taxable income
2 10 for state tax purposes.
2 11 b. For purposes of this section, "conservation purpose",
2 12 "qualified organization", and "qualified real property
2 13 interest" mean the same as defined for the qualified
2 14 conservation contribution under section 170(h) of the Internal
2 15 Revenue Code, except that a conveyance of land for open space
2 16 for the purpose of fulfilling density requirements to obtain
2 17 subdivision or building permits shall not be considered a
2 18 conveyance for a conservation purpose.
2 19 c. Any credit in excess of the tax liability is not
2 20 refundable but the excess for the tax year may be credited to
2 21 the tax liability for the following twenty tax years or until
2 22 depleted, whichever is the earlier.
2 23 Sec. 3. RETROACTIVE APPLICABILITY DATE. This Act applies
2 24 retroactively to January 1, 2008, for tax years beginning on
2 25 or after that date.
2 26 EXPLANATION
2 27 This bill allows for a tax credit under the individual or
2 28 corporate income tax for the charitable contribution of real
2 29 estate to qualified organizations exclusively for qualified
2 30 conservation purposes. A qualified organization includes
2 31 certain governmental units, public charities that meet certain
2 32 public support tests, and certain supporting organizations. A
2 33 qualified conservation purpose includes: preserving land for
2 34 outdoor recreation by or for the education of the general
2 35 public; protecting a relatively natural habitat of fish,
3 1 wildlife, or plants; preserving open space for the public's
3 2 scenic employment or under a governmental conservation policy
3 3 that will yield a significant public benefit; and preserving
3 4 an historically important land area or a certified historic
3 5 structure.
3 6 The amount of the credit is 50 percent of the fair market
3 7 value of the charitable contribution not to exceed $100,000.
3 8 The credit is nonrefundable but any excess may be carried
3 9 forward to the following 20 tax years, or until depleted.
3 10 The bill applies retroactively to January 1, 2008, for tax
3 11 years beginning on or after that date.
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