A BILL TO BE ENTITLED
AN ACT to provide an income tax credit for donations of oyster shells to the Department of Environment and Natural Resources for placement in oyster sanctuaries to restore oyster populations.
The General Assembly of North Carolina enacts:
SECTION 1.  Part 1 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑130.47.  Credit for recycling oyster shells.
(a)	Credit. – A taxpayer who donates oyster shells to the Division of Marine Fisheries of the Department of Environment and Natural Resources is eligible for a credit against the tax imposed by this Part. The amount of the credit is equal to the fair market value of the oyster shells donated.
(b)	Limitation. – The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payment made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for the succeeding five years.
(c)	No Double Benefit. – No deduction is allowed under G.S. 105‑130.5(b)(5) for the oyster shells for which a credit is claimed under this section.
(d)	Sunset. – This section is repealed for taxable years beginning on or after January 1, 2010."
SECTION 2.  Part 2 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑151.29.  Credit for recycling oyster shells.
(a)	Credit. – A taxpayer who donates oyster shells to the Division of Marine Fisheries of the Department of Environment and Natural Resources is eligible for a credit against the tax imposed by this Part. The amount of the credit is equal to the fair market value of the oyster shells donated.
(b)	Limitation. – The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payment made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for the succeeding five years.
(c)	No Double Benefit. – A taxpayer who claims a credit under this section must add back to taxable income any amount deducted under the Code for the donation of the oyster shells.
(d)	Sunset. – This section is repealed for taxable years beginning on or after January 1, 2010."
SECTION 3.  G.S. 105‑160.3(b) reads as rewritten:
"(b)	The following credits are not allowed to an estate or trust:
…
(8)	G.S. 105‑151.29. Credit for recycling oyster shells."
SECTION 4.  This act is effective for taxable years beginning on or after January 1, 2005.