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:
"§ 105‑130.48.  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 one dollar ($1.00) per bushel of 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. 
(c)	Carryforward. – Any unused portion of a credit allowed in this section may be carried forward for the succeeding five years. A successor in business may take the carryforwards of a predecessor corporation as if they were carryforwards of a credit allowed to the successor in business.
(d)	No Double Benefit. – No deduction is allowed under G.S. 105‑130.5(b)(5) or G.S. 105‑130.9 for the donation of oyster shells for which a credit is claimed under this section.
(e)	Documentation of Credit. – To support the credit allowed by this section, the taxpayer must file with its income tax return, for the taxable year in which the credit is claimed, a certification by the Department of Environment and Natural Resources stating the number of bushels of oyster shells donated by the taxpayer.
(f)	Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2011."
SECTION 2.  G.S. 105‑130.9(4) reads as rewritten:
"(4)	The amount of a contribution for which the taxpayer claimed a tax credit pursuant to G.S. 105‑130.34 or G.S. 105‑130.48 shall not be eligible for a deduction under this section. The amount of the credit claimed with respect to the contribution is not, however, required to be added to income under G.S. 105‑130.5(a)(10)."
SECTION 3.  Part 2 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑151.30.  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 one dollar ($1.00) per bushel of 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.
(c)	Carryforward. – Any unused portion of a credit allowed in this section may be carried forward for the succeeding five years.
(d)	Documentation of Credit. – To support the credit allowed by this section, the taxpayer must file with its income tax return, for the taxable year in which the credit is claimed, a certification by the Department of Environment and Natural Resources stating the number of bushels of oyster shells donated by the taxpayer.
(e)	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.
(f)	Sunset. – This section is repealed effective for taxable years beginning on or after January 1, 2011."
SECTION 4.  G.S. 105‑151.26 reads as rewritten:
"§ 105‑151.26.  Credit for charitable contributions by nonitemizers.
A taxpayer who elects the standard deduction under section 63 of the Code for federal tax purposes is allowed as a credit against the tax imposed by this Part an amount equal to seven percent (7%) of the taxpayer's excess charitable contributions. The taxpayer's excess charitable contributions are the amount by which the taxpayer's charitable contributions for the taxable year that would have been deductible under section 170 of the Code if the taxpayer had not elected the standard deduction exceed two percent (2%) of the taxpayer's adjusted gross income as calculated under the Code.
No credit shall be allowed under this section for amounts deducted from gross income in calculating taxable income under the Code or for contributions for which a credit was claimed under G.S. 105‑151.12, 105‑151.14, or 151.30. A nonresident or part‑year resident who claims the credit allowed by this section shall reduce the amount of the credit by multiplying it by the fraction calculated under G.S. 105‑134.5(b) or (c), as appropriate. 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 allowed, except payments of tax made by or on behalf of the taxpayer."
SECTION 5.  G.S. 105‑134.6(c) is amended by adding a new subdivision to read:
"(5a)	The market price of the oyster shells for which the taxpayer claims a credit for the taxable year under G.S. 105‑151.30."
SECTION 6.  G.S. 105‑160.3(b) reads as rewritten:
"(b)	The following credits are not allowed to an estate or trust:
…
(8)	G.S. 105‑151.30. Credit for recycling oyster shells."
SECTION 7.  This act is effective for taxable years beginning on or after January 1, 2006, and expires for taxable years beginning on or after January 1, 2011.