What's happening
This bill updates the conservation easement tax credit to clarify eligible real property taxes and makes technical corrections to the law.
Why it matters
Clarifies what property taxes qualify for the conservation easement tax credit. , shifting from only “school district, county and town” taxes to all real property taxes actually paid on the land subject to the easement. This could increase the value of the credit for some landowners and makes it easier to determine eligibility.
Specifies that only taxes “paid” on land subject to the easement are eligible. for the credit, rather than just “allowable” taxes, reducing ambiguity and potential disputes between taxpayers and the state.
Ensures technical consistency across both individual and corporate tax provisions. , aligning definitions and credit limits, so both individuals and businesses benefit under the same clarified rules (including a $5,000 annual cap and refundability provisions).
May encourage more land conservation by making the tax credit easier to claim and understand. , potentially increasing participation by removing technical hurdles and clarifying eligibility, which supports broader conservation goals in New York.
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Who cares
Headline styles
Fix Conservation Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 1695a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 59–1
- Ordered to third reading cal.1607
- Committee discharged and committed to rules
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Fix Conservation Tax Credit
In Assembly Committee · Ways And Means · Sponsor Fred Thiele
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1695--A
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to making technical corrections to the conservation easement tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 1 of subsection (kk) of section 606 of the tax law, as added by section 1 of part F of chapter 62 of the laws of 2006, is amended to read as follows:
(1) Credit allowed. In the case of a taxpayer who owns land that is subject to a conservation easement held by a public or private conservation agency, there shall be allowed a credit for twenty-five percent of the [allowable school district, county and town] real property taxes paid on [such] the land, or portion of the land, subject to the easement. In no event shall the credit allowed under this subsection in combination with any other credit for [such school district, county and town] real property taxes under this section exceed such taxes.
§ 2. Subdivision 22 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows:
22. Conservation easement tax credit. (a) Credit allowed. In the case of a taxpayer who owns land that is subject to a conservation easement held by a public or private conservation agency, there shall be allowed a credit for twenty-five percent of the [allowable school district, county and town] real property taxes paid on [such] the land, or portion of the land, subject to the easement. In no such case shall the credit allowed under this subdivision in combination with any other credit for
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02348-02-8
S. 1695--A 2
[such school district, county and town] real property taxes under this section exceed such taxes.
(b) Conservation easement. For purposes of this subdivision, the term "conservation easement" means a perpetual and permanent conservation easement as defined in article forty-nine of the environmental conservation law that serves to protect open space, scenic, natural resources, biodiversity, agricultural, watershed and/or historic preservation resources. Any conservation easement for which a tax credit is claimed under this subdivision shall be filed with the department of environmental conservation, as provided for in article forty-nine of the environmental conservation law and such conservation easement shall comply with the provisions of title three of such article, and the provisions of subdivision (h) of section 170 of the internal revenue code. Dedications of land for open space through the execution of conservation easements for the purpose of fulfilling density requirements to obtain subdivision or building permits shall not be considered a conservation easement under this subdivision.
(c) Land. For purposes of this subdivision, the term "land" means a fee simple title to real property located in this state, with or without improvements thereon; rights of way; water and riparian rights; easements; privileges and all other rights or interests of any land or description in, relating to or connected with real property, excluding buildings, structures, or improvements.
(d) Public or private conservation agency. For purposes of this subdivision, the term "public or private conservation agency" means any state, local, or federal governmental body; or any private not-for-profit charitable corporation or trust which is authorized to do business in the state of New York, is organized and operated to protect land for natural resources, conservation or historic preservation purposes, is exempt from federal income taxation under section 501(c)(3) of the internal revenue code, and has the power to acquire, hold and maintain land and/or interests in land for such purposes.
(e) Credit limitation. The amount of the credit that may be claimed by a taxpayer pursuant to this subsection shall not exceed five thousand dollars in any given year.
(f) Application of the credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the fixed dollar minimum amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of the credit allowed under this subdivision for any taxable year reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of the credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of subsection (c) of section one thousand eighty-eight of this chapter, except that, no interest shall be paid thereon.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows:
(xliv) Conservation easement Amount of credit under tax credit under subsection (kk) subdivision twenty-two of
section two hundred ten-B
§ 4. This act shall take effect immediately and shall be made applicable to taxable years commencing on and after January 1, 2019 and thereafter.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to making technical corrections to the conservation easement tax credit
Purpose
To include village taxes in the calculation of the income tax credit available to land owners that grant a conservation easement.
Summary of provisions
Section 1 and 2 make technical corrections to Chapter 62 of the laws of 2006 to allow the income tax credit to be applied to all classifications of land subject to the easement, including village taxes.
Justification
Currently, an income tax credit is available to land owners that grant conservation easement based on 25% of their property taxes up to $5,000. This legislation will make a technical amendment to the current tax credit to include village property taxes.
An income tax credit for real property taxes paid on land under a conservation easement will help landowners bear the annual carrying costs of land that provides multiple public benefits. This income tax credit will have a large impact on those landowners who have modest incomes and are unlikely to benefit significantly from existing tax deductions. An income tax credit will provide them with an incentive to make a gift to perpetually conserved land that they otherwise could not afford to make.
Legislative history
2017: S.1695 Passed Senate / A. 3309 Ways and Means 2016: S.1921 Passed Senate 2015: S. 1921 Passed Senate / A. 3920 Ways and Means 2013-14: S. 3631-A Passed Senate / A. 4898-A Ways and Means 2011-12: S. 4088-A Passed Senate / A. 9653 Ways and Means 2009-10: S. 866 Investigations and Government Operations / A. 5876 Ways and Means 2007-08: S. 4368-A Passed Senate /A. 7134-B Passed Assembly - 2008 Governor's Veto 9.
Fiscal implications
Minimal.
Effective date
This act shall take effect immediately and shall be made applicable to taxable years commencing on and after January 1, 2019 and thereafter.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.