South Carolina General Assembly
113th Session, 1999-2000

Download This Version in Microsoft Word format

Bill 3782


Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

RECALLED

May 12, 1999

H. 3782

Introduced by Reps. Campsen, Barfield, Barrett, Beck, Bowers, Cato, Cotty, Davenport, Delleney, Easterday, Edge, Emory, Gilham, Govan, Hamilton, Harrell, Harris, Harrison, Haskins, Klauber, Koon, Leach, Limehouse, Littlejohn, Loftis, Lourie, Lucas, Maddox, M. McLeod, W. McLeod, Meacham, Miller, Neal, Quinn, Rice, Robinson, Sandifer, Sheheen, Simrill, D. Smith, J. Smith, Stille, Stuart, Taylor, Vaughn, Whatley, Whipper and Woodrum

S. Printed 5/12/99--S.

Read the first time April 28, 1999.

A BILL

TO ENACT THE "SOUTH CAROLINA CONSERVATION INCENTIVES ACT" BY AMENDING THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3515 SO AS TO ALLOW AN INCOME TAX CREDIT EQUAL TO TWENTY-FIVE PERCENT OF THE VALUE OF A FEDERAL INCOME TAX CHARITABLE DEDUCTION FOR A QUALIFIED CONSERVATION CONTRIBUTION OF A QUALIFIED REAL PROPERTY INTEREST LOCATED IN THIS STATE, TO PROVIDE A CAP ON THIS CREDIT, TO DEFINE THE LANDS OVER WHICH THESE EASEMENTS APPLY WHICH ARE ELIGIBLE FOR THESE CREDITS, TO PROVIDE A CARRY FORWARD OF UNUSED CREDIT AND MAKE THE UNUSED CREDIT TRANSFERABLE UPON NOTICE TO THE DEPARTMENT OF REVENUE WITH THE CREDIT RETAINING ALL ITS ATTRIBUTES IN THE HANDS OF THE TRANSFEREE, AND TO PROVIDE DEFINITIONS; AND BY ADDING ARTICLE 11 IN CHAPTER 3 OF TITLE 50, RELATING TO THE DEPARTMENT OF NATURAL RESOURCES, SO AS TO ESTABLISH THE CONSERVATION GRANT FUND IN THE STATE TREASURY, TO PROVIDE FOR THE PURPOSE, GOVERNANCE, AND SOURCE OF FUNDS FOR THIS FUND INCLUDING THE PROMOTION OF DONATIONS OF CONSERVATION EASEMENTS AND AUTHORIZING THE FUND TO MAKE GRANTS IN FURTHERANCE OF THIS PURPOSE, NOT INCLUDING GRANTS TO PURCHASE ANY INTEREST IN REAL PROPERTY; AND TO AMEND SECTION 62-3-715, AS AMENDED, RELATING TO THE TRANSACTION AUTHORIZED FOR PERSONAL REPRESENTATIVES UNDER THE SOUTH CAROLINA PROBATE CODE, SO AS TO AUTHORIZE A PERSONAL REPRESENTATIVE OR TRUSTEE, AS APPLICABLE, WITH THE CONSENT OF ALL AFFECTED PARTIES TO MAKE A DONATION OF A QUALIFIED CONSERVATION EASEMENT TO OBTAIN A FEDERAL ESTATE TAX AND STATE INCOME TAX CREDIT BENEFIT, AND TO PROVIDE FOR THE METHOD TO OBTAIN THE CONSENT OF PERSONS OTHERWISE UNABLE TO GIVE SUCH CONSENT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. This section may be cited as the "South Carolina Conservation Incentives Act".

SECTION 2. The General Assembly finds that South Carolina, from the mountains to the sea, is blessed with some of the most beautiful and pristine natural areas in North America. These diverse and ecologically significant areas warrant creative conservation initiatives if they are to be preserved for the enjoyment and benefit of future generations, and if traditional uses of undeveloped land such as wildlife habitat management, farming, hunting, fishing, and forestry are to be preserved. Absent such initiatives, there is danger that these natural areas and their traditional uses will be lost forever to the pressures of development and urbanization.

The General Assembly further finds that paying deference to property rights while conserving these natural areas is a laudable goal, and that traditional land use planning and regulatory techniques have limited effectiveness in preserving large tracts of undeveloped land. By enacting the "South Carolina Conservation Incentives Act", it is the intent of the General Assembly to provide an income tax credit incentive for landowners to voluntarily convey conservation easements to qualified conservation organizations. Such an incentive for the voluntary conveyance of conservation easements will protect and preserve natural areas and their traditional uses while paying appropriate deference to property rights, expending no state funds, and keeping property in the private sector and on property tax rolls.

SECTION 3. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3515. (A) A taxpayer who has qualified for and claimed on the taxpayer's federal income tax return a charitable deduction for a qualified conservation contribution on a qualified real property interest located in this State is allowed a credit against a tax imposed by this chapter in an amount equal to twenty-five percent of the total amount of the deduction attributable to the qualified real property interest located in this State; provided, however, that the credit is subject to the cap provided for in subsection (C). If the amount of the credit exceeds the taxpayer's tax liability under this chapter for a taxable year, the excess credit may be carried forward to succeeding taxable years until all the credit is claimed. In addition to the carry forward of unused credit, unused credit may be transferred, devised, or distributed, with or without consideration, by an individual, partnership, limited liability company, corporation, trust or estate. To be effectual such a transfer, devise, or distribution requires written notification to the department, with the unused credit maintaining all its original attributes in the hands of the recipient.

(B) For purposes of this section, a 'qualified conservation contribution' and a 'qualified real property interest' are defined as provided in Internal Revenue Code Section 170(h).

(C) The credit provided for in this section may not exceed two hundred fifty dollars per acre of property to which the qualified conservation contribution applies. However, beginning in the year 2000, the two hundred fifty dollar per acre limitation shall be adjusted for inflation in the same manner income tax brackets are adjusted as provided in Section 12-6-520. For the purpose of calculating the per acre tax credit cap of this subsection, all upland and wetland acreage subject to the qualified conservation contribution shall be taken into account, except for property lying within the intertidal zone. All other wetland acreage subject to the qualified conservation contribution including, but not limited to, ponds, wetland impoundments, hardwood bottomlands, and Carolina Bays shall be taken into account when calculating the two hundred fifty dollar per acre tax credit cap."

SECTION 4. Chapter 3, Title 50 of the 1976 Code is amended by adding:

"Article 11

Conservation Grant Fund

Section 50-3-1110. There is created in the state treasury a fund separate and distinct from the general fund of the State and all other funds styled the 'Conservation Grant Fund'. The income and principal of the fund must be used only to stimulate the use of conservation easements to improve the capacity of private nonprofit land trusts successfully to accomplish conservation projects and to provide an opportunity to leverage private and public monies for conservation easements. Income of the fund remains a part of the fund, and fund revenues carry forward from year to year and remain available for expenditure in accordance with this title.

Section 50-3-1120. The board of the Department of Natural Resources serves ex officio as the Conservation Grant Fund Board with full authority over the administration of the fund.

Section 50-3-1130. The Conservation Grant Fund shall consist of any monies appropriated to it by the General Assembly and other monies received from public or private sources.

Section 50-3-1140. In order for real property to be the subject of a grant under this article, the land must qualify for the tax credit allowed pursuant to Section 12-6-3515.

Section 50-3-1150. (A) Revenues in the Conservation Grant Fund may be used by the department only to:

(1) defray the administrative costs of the department in administering the grant purpose provided for by this article;

(2) provide education on conservation easements including information material intended for landowners and education for staff and volunteers; and

(3) make conservation grants.

(B) A grant from the Conservation Grant Fund may be used only to pay for one or more of the following costs:

(1) reimbursement for total or partial transaction costs for donations from individuals or corporations that otherwise would not be made because of insufficient financial revenues;

(2) management support, including initial baseline inventory and planning;

(3) monitoring compliance with conservation easements;

(4) education on conservation easements, including information materials intended for landowners, and education for staff and volunteers.

(C) No fund proceeds may be used to pay the purchase price of any interest in real property.

Section 50-3-1160. The board shall establish the procedures and criteria for awarding grants under this article. The criteria shall focus grants on those areas, approaches, and techniques that are likely to provide the optimum positive effect on conservation. The board shall make the final decision on the award of grants and announce awards publicly."

SECTION 5. Section 62-3-715 of the 1976 Code, as last amended by Act 521 of 1990, is further amended by adding an item appropriately numbered at the end to read:

"( ) donate a qualified conservation easement on any real property of the decedent in order to obtain the benefit of the estate tax exclusion allowed under Internal Revenue Code Section 2031(c) as defined in Section 12-6-40(A), and the state income tax credit allowed under Section 12-6-3515, if the personal representative has the written consent of all of the heirs, beneficiaries, and devises whose interests are affected by the donation. Upon petition of the personal representative, the circuit court may consent on behalf of any unborn, unascertained, or incapacitated heirs, beneficiaries, or devises whose interests are affected by the donation after determining that the donation of the qualified real property interest shall not adversely affect them or would most likely be agreed to by them if they were before the court and capable of consenting. A guardian ad litem must be appointed to represent the interest of any unborn, unascertained, or incapacitated persons. Similarly, and for the same purposes and under the same conditions, mutatis mutandis, a trustee may make such a donation for the settlor."

SECTION 6. This act takes effect upon approval by the Governor, and, for purposes of tax credits, applies for taxable years beginning after 1998.

----XX----


This web page was last updated on Friday, June 26, 2009 at 3:01 P.M.