§ 105-130.34. Credit for certain real property donations. - North Carolina Statutes

§ 105‑130.34.  Creditfor certain real property donations.

(a)        Any C Corporationthat makes a qualified donation of an interest in real property located inNorth Carolina during the taxable year that is useful for (i) public beachaccess or use, (ii) public access to public waters or trails, (iii) fish andwildlife conservation, (iv) forestland or farmland conservation, (v) watershedprotection, (vi) conservation of natural areas as that term is defined in G.S.113A‑164.3(3), (vii) conservation of natural or scenic river areas asthose terms are used in G.S. 113A‑34, (viii) conservation ofpredominantly natural parkland, or (ix) historic landscape conservation isallowed a credit against the tax imposed by this Part equal to twenty‑fivepercent (25%) of the fair market value of the donated property interest. To beeligible for this credit, the interest in real property must be donated inperpetuity to and accepted by the State, a local government, or a body that isboth organized to receive and administer lands for conservation purposes andqualified to receive charitable contributions pursuant to G.S. 105‑130.9.Lands required to be dedicated pursuant to local governmental regulation orordinance and dedications made to increase building density levels permittedunder a regulation or ordinance are not eligible for this credit. The creditallowed under this section for one or more qualified donations made in ataxable year may not exceed five hundred thousand dollars ($500,000). Tosupport the credit allowed by this section, the taxpayer must file with theincome tax return for the taxable year in which the credit is claimed thefollowing:

(1)        A certification bythe Department of Environment and Natural Resources that the property donatedis suitable for one or more of the valid public benefits set forth in thissubsection.

(2)        A self‑containedappraisal report or summary appraisal report as defined in Standards Rule 2‑2in the latest edition of the Uniform Standards of Professional AppraisalPractice as promulgated by the Appraisal Foundation for the property. For feesimple absolute donations of real property, a taxpayer may submit documentationof the county's appraised value of the donated property, as adjusted by thesales assessment ratio, in lieu of an appraisal report.

(b)        The credit allowedby this section may not exceed the amount of tax imposed by this Part for thetaxable year reduced by the sum of all credits allowed, except payments of taxmade by or on behalf of the taxpayer.

(c)        Any unused portionof this credit may be carried forward for the next succeeding five years.

(d)        That portion of aqualifying donation that is the basis for a credit allowed under this sectionis not eligible for deduction as a charitable contribution under G.S. 105‑130.9. (1983, c. 793,s. 1; 1989, c. 716, s. 1; c. 727, s. 218 (41); 1997‑226, s. 1; 1997‑443,s. 11A.119(a); 1998‑98, s. 69; 1998‑212, s. 29A.13(c); 2002‑72,s. 15(a); 2007‑309, s. 1; 2009‑445, s. 9(c).)