February 12, 2008, Introduced by Reps. Sheltrown, Walker, Hansen, Mayes, Ball, Stahl and Rick Jones and referred to the Committee on Tourism, Outdoor Recreation and Natural Resources.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 277.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 277. (1) For tax years that begin after December 31,
2007, a taxpayer may claim a credit against the tax imposed by this
act equal to 50% of the state equalized valuation as determined
under the general property tax act, 1893 PA 206, MCL 211.1 to
211.155, of a qualified donation of real property or an interest in
real property located in this state that is conveyed by the
taxpayer in the tax year.
(2) The credit allowed under this section shall not exceed
$10,000.00 per tax year.
(3) To qualify for the credit allowed under this section, the
qualified donation of real property or interest in real property
donated shall be used for either of the following purposes:
(a) The protection of private lands for open space, natural
resources, biodiversity conservation, outdoor recreation, farmland
and forestland preservation, historic preservation, and land
conservation.
(b) The protection of a unique natural resource, wildlife
habitat, open space, agricultural or forested resource, or historic
resource of this state.
(4) The department of natural resources shall develop criteria
to determine if the donation qualifies for the credit allowed under
this section. A taxpayer who makes a donation shall apply to the
department of natural resources for a credit certificate on a form
provided by the department and shall submit that application form
to the department of natural resources along with documentation
that verifies that the taxpayer's donation is a qualified donation,
that he or she made the donation in the tax year, and the purpose
for which the donation was made. The department of natural
resources shall approve or deny the application. If the department
of natural resources approves the application, the department of
natural resources shall issue a certificate that states that the
donation is a qualified donation, the value of the qualified
donation, and the total amount of the credit that the taxpayer is
allowed to claim under this section. If the department of natural
resources denies an application under this subsection, a taxpayer
is not prohibited from subsequently applying for the credit allowed
under this section.
(5) If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed under this
section exceed the tax liability of the taxpayer for the tax year,
the excess shall not be refunded, but may be carried forward as an
offset to the tax liability in subsequent tax years for 20 tax
years or until the excess credit is used up, whichever occurs
first.
(6) A taxpayer may transfer all or a portion of the tax credit
allowed under this section. A tax credit transfer under this
section is irrevocable and shall be made in the tax year in which
the qualified donation is made. A taxpayer may claim a portion of a
credit and transfer the remaining tax credit amount. Except as
otherwise provided in this subsection, if the taxpayer both claims
and transfers portions of the tax credit, the taxpayer shall claim
the portion he or she claims in the tax year in which the qualified
donation is made. If a taxpayer transfers all or a portion of the
tax credit to more than 1 taxpayer, the taxpayer shall prorate the
tax credit to each transferee. A transferee shall not subsequently
transfer a tax credit or any portion of a tax credit transferred
under this subsection. The tax credit transfer under this
subsection shall be made on a form prescribed by the department.
The transferee shall attach a copy of the completed transfer form
to his or her annual return required to be filed under this act for
the tax year in which the transfer is made and the transferee first
claims a credit, which shall be the same tax year.
(7) The donation used as a basis for a credit under this
section shall not be used as a basis for any other credit or
deduction under this act or under the Michigan business tax act,
2007 PA 36, MCL 208.1101 to 208.1601.
(8) The department of natural resources may promulgate rules
to implement the provisions of this section.
(9) As used in this section, "qualified donation" means an
unconditional donation in perpetuity to this state, a political
subdivision of this state, or a charitable organization described
in section 501(c)(3) of the internal revenue code that also meets
the requirements of section 170(h)(3) of the internal revenue code
and the criteria under subsection (3), of either of the following:
(a) A fee interest in real property.
(b) A less than fee interest in real property, including, but
not limited to, a conservation restriction, preservation
restriction, agricultural preservation restriction, or watershed
preservation restriction, if the less than fee interest qualifies
for a charitable contribution deduction under section 170(h) of the
internal revenue code.