§ 105-151.12. Credit for certain real property donations. - North Carolina Statutes

§ 105‑151.12.  Creditfor certain real property donations.

(a)        An individual orpass‑through entity that makes a qualified donation of an interest inreal property located in North Carolina during the taxable year that is usefulfor (i) public beach access or use, (ii) public access to public waters ortrails, (iii) fish and wildlife conservation, (iv) forestland or farmlandconservation, (v) watershed protection, (vi) conservation of natural areas asthat term is defined in G.S. 113A‑164.3(3), (vii) conservation of naturalor scenic river areas as those terms are used in G.S. 113A‑34, (viii)conservation of predominantly natural parkland, or (ix) historic landscapeconservation is allowed a credit against the tax imposed by this Part equal totwenty‑five percent (25%) of the fair market value of the donatedproperty interest. To be eligible for this credit, the interest in propertymust be donated in perpetuity to and accepted by the State, a local government,or a body that is both organized to receive and administer lands forconservation purposes and qualified to receive charitable contributions underthe Code. Lands required to be dedicated pursuant to local governmentalregulation or ordinance and dedications made to increase building densitylevels permitted under a regulation or ordinance are not eligible for thiscredit. To support the credit allowed by this section, the taxpayer must filewith the income tax return for the taxable year in which the credit is claimedthe following:

(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. The certification for a qualified donation made by a pass‑throughentity must be filed by the pass‑through entity.

(2)        A self‑containedor summary appraisal report as defined in Standards Rule 2‑2 in thelatest edition of the Uniform Standards of Professional Appraisal Practice aspromulgated by the Appraisal Foundation for the property. For fee simpleabsolute donations of real property, a taxpayer may submit documentation of thecounty's appraised value of the donated property, as adjusted by the salesassessment ratio, in lieu of an appraisal report.

(a1)      Individuals. – Theaggregate amount of credit allowed to an individual in a taxable year underthis section for one or more qualified donations made during the taxable year,whether made directly or indirectly as owner of a pass‑through entity,may not exceed two hundred fifty thousand dollars ($250,000). In the case ofproperty owned by a married couple, if both spouses are required to file NorthCarolina income tax returns, the credit allowed by this section may be claimedonly if the spouses file a joint return. The aggregate amount of credit allowedto a husband and wife filing a joint tax return may not exceed five hundredthousand dollars ($500,000). If only one spouse is required to file a NorthCarolina income tax return, that spouse may claim the credit allowed by thissection on a separate return.

(a2)      Pass‑ThroughEntities. – The aggregate amount of credit allowed to a pass‑throughentity in a taxable year under this section for one or more qualified donationsmade during the taxable year, whether made directly or indirectly as owner ofanother pass‑through entity, may not exceed five hundred thousand dollars($500,000). Each individual who is an owner of a pass‑through entity isallowed as a credit an amount equal to the owner's allocated share of thecredit to which the pass‑through entity is eligible under thissubsection, not to exceed two hundred fifty thousand dollars ($250,000). Eachcorporation that is an owner of a pass‑through entity is allowed as acredit an amount equal to the owner's allocated share of the credit to whichthe pass‑through entity is eligible under this subsection, not to exceedfive hundred thousand dollars ($500,000). If an owner's share of the pass‑throughentity's credit is limited due to the maximum allowable credit under thissection for a taxable year, the pass‑through entity and its owners maynot reallocate the unused credit among the other owners.

(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.

Any unused portion of thiscredit may be carried forward for the next succeeding five years.

(c)        Repealed by SessionLaws 1998‑212, s. 29A.13(b).

(d)        Repealed by SessionLaws 2007‑309, s. 2, effective for taxable years beginning on or afterJanuary 1, 2007.

(e)        In the case ofmarshland for which a claim has been filed pursuant to G.S. 113‑205, theoffer of donation must be made before December 31, 2003 to qualify for thecredit allowed by this section.

(f)         Repealed bySession Laws 2007‑309, s. 2, effective for taxable years beginning on orafter January 1, 2007.  (1983, c. 793, s. 3; 1985, c. 278, s. 2; 1989, c. 716, s. 2; c. 727,s. 218(43); c. 728, s. 1.17; 1989 (Reg. Sess., 1990), c. 869, s. 3; 1991, c.45, s. 10; c. 453, ss. 2, 4; 1991 (Reg. Sess., 1992), c. 930, s. 21; 1993 (Reg.Sess., 1994), c. 717, s. 4; 1997‑226, s. 2; 1997‑443, s.11A.119(a); 1998‑98, s. 69; 1998‑179, s. 2; 1998‑212, s.29A.13(b), (d); 2001‑335, s. 2; 2002‑72, s. 15(b); 2004‑134,s. 1; 2006‑66, s. 24.15(a); 2007‑309, s. 2; 2009‑445, s.9(d).)