GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	2 

HOUSE BILL 1491*
Committee Substitute Favorable 7/15/98

Short Title:  Amend Conservation Easements Tax Credit.   	(Public)

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Sponsors:

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Referred to:  

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May 25, 1998

A BILL TO BE ENTITLED
AN ACT TO ELIMINATE THE REQUIREMENT THAT AN INDIVIDUAL INCOME TAXPAYER ADD BACK TO TAXABLE INCOME THE FAIR MARKET VALUE OF REAL PROPERTY DONATED FOR CONSERVATION PURPOSES IN ORDER TO CLAIM THE INCOME TAX CREDIT FOR THE DONATION OF THAT PROPERTY, AS RECOMMENDED BY THE ENVIRONMENTAL REVIEW COMMISSION.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-134.6(c) reads as rewritten:
"(c)	Additions. – The following additions to taxable income shall be made in calculating North Carolina taxable income, to the extent each item is not included in taxable income:
(1)	Interest upon the obligations of states other than this State, political subdivisions of those states, and agencies of those states and their political subdivisions.
(2)	Any amount allowed as a deduction from gross income under the Code that is taxed under the Code by a separate tax other than the tax imposed in section 1 of the Code.
(3)	Any amount deducted from gross income under section 164 of the Code as state, local, or foreign income tax to the extent that the taxpayer's total itemized deductions deducted under the Code for the taxable year exceed the standard deduction allowable to the taxpayer under the Code reduced by the amount by which the taxpayer's allowable standard deduction has been increased under section 63(c)(4) of the Code.
(4)	The amount by which the taxpayer's standard deduction has been increased for inflation under section 63(c)(4)(A) of the Code.
(4a)	(Effective for taxable years beginning on or after January 1, 1995) The amount by which each of the taxpayer's personal exemptions has been increased for inflation under section 151(d)(4)(A) of the Code. This amount is reduced by two hundred fifty dollars ($250.00) for each personal exemption if the taxpayer's adjusted gross income (AGI), as calculated under the Code, is less than the following amounts: 
Filing Status	 AGI
Married, filing jointly	$100,000
Head of Household	  80,000
Single	  60,000
Married, filing separately	  50,000.
	    For the purposes of this subdivision, if the taxpayer's personal exemptions have been reduced by the applicable percentage under section 151(d)(3) of the Code, the amount by which the personal exemptions have been increased for inflation is also reduced by the applicable percentage.
(4a)	(Effective for taxable years beginning on or after January 1, 1996) The amount by which each of the taxpayer's personal exemptions has been increased for inflation under section 151(d)(4)(A) of the Code. This amount is reduced by five hundred dollars ($500.00) for each personal exemption if the taxpayer's adjusted gross income (AGI), as calculated under the Code, is less than the following amounts:
Filing Status	 AGI
Married, filing jointly	$100,000
Head of Household	  80,000
Single	  60,000
Married, filing separately	  50,000.
	    For the purposes of this subdivision, if the taxpayer's personal exemptions have been reduced by the applicable percentage under section 151(d)(3) of the Code, the amount by which the personal exemptions have been increased for inflation is also reduced by the applicable percentage.
(5)	The market price of the gleaned crop for which the taxpayer claims a credit for the taxable year under G.S. 105-151.14.
(6)	The amount by which the basis of property under the Code exceeds the basis of the property under this Article, in the year the taxpayer disposes of the property.
(7)	The amount of federal estate tax that is attributable to an item of income in respect of a decedent and is deducted from gross income under section 691(c) of the Code."
Section 2.  G.S. 105-151.12(c) is repealed.
Section 3.  This act becomes effective for taxable years beginning on or after 1 January 1998.