(a) (1) For purposes of paragraph (3) of subdivision (b) of Section 24357.2, the term “qualified conservation contribution” means a contribution—
(A) Of a qualified real property interest,
(B) To a qualified organization,
(C) Exclusively for conservation purposes.
(2) For purposes of this subdivision, the term “qualified real property interest” means any of the following interests in real property:
(i) The entire interest of the donor other than a qualified mineral interest.
(ii) A remainder interest.
(iii) A restriction (granted in perpetuity) on the use which may be made of the real property.
(b) For purposes of subdivision (a), the term “qualified organization” means an organization which:
(1) Is described in subdivision (a) or (b) of Section 24359, or
(2) Is described in Section 23701(d), and—
(A) Meets the requirements of Section 509(a)(2) of the Internal Revenue Code, or
(B) Meets the requirements of Section 509(a)(3) of the Internal Revenue Code and is controlled by an organization described in paragraph (1) or in subparagraph (A).
(c) For purposes of this section, the term “conservation purpose” means any of the following:
(1) The preservation of land areas for outdoor recreation by, or the education of, the general public.
(2) The protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem.
(3) The preservation of open space (including farm land and forest land) where that preservation is for any of the following:
(A) For the scenic enjoyment of the general public.
(B) Pursuant to a clearly delineated federal, state, or local governmental conservation policy, and will yield a significant public benefit.
(C) The preservation of a historically important land area or a certified historic structure.
(d) In the case of any contribution of a qualified real property interest, which is a restriction with respect to the exterior of a building described in paragraph (2) of subdivision (e), that contribution shall not be considered to be exclusively for conservation purposes unless all of the following conditions are met:
(1) That interest includes a restriction that preserves the entire exterior of the building, including the front, sides, rear, and height of the building, and prohibits any change in the exterior of the building that is inconsistent with the historical character of that exterior.
(2) The donor and donee enter into a written agreement certifying, under penalty of perjury, that the donee is a qualified organization, as defined in subdivision (b), with a purpose of environmental protection, land conservation, and open-space preservation, and has the resources to manage and enforce the restriction and a commitment to do so.
(3) In the case of any contribution made in a taxable year beginning on or after January 1, 2010, the taxpayer includes with the taxpayer’s return for the taxable year of the contribution all of the following information:
(A) A qualified appraisal, within the meaning of Section 170(f)(11)(E) of the Internal Revenue Code, of the qualified property interest.
(B) Photographs of the entire exterior of the building.
(C) A description of all restrictions on the development of the building.
(e) The term “certified historic structure” means either of the following:
(1) Any building, structure, or land area that is listed in the National Register.
(2) (A) Any building that is located in a registered historic district (as defined in Section 47(c)(3)(B) of the Internal Revenue Code) and is certified by the Secretary of the Interior to the secretary as being of historic significance to the district.
(B) A building, structure, or land area satisfies the requirements of subparagraph (A) if it satisfies those requirements either at the time of the transfer or on the due date (including extensions) for filing the transferor’s return under this part for the taxable year in which the transfer is made.
(f) For purposes of this section:
(1) A contribution shall not be treated as exclusively for conservation purposes unless the conservation purpose is protected in perpetuity.
(2) (A) Except as provided in subparagraph (B), in the case of a contribution of any interest where there is a retention of a qualified mineral interest, this subdivision shall not be treated as met if at any time there may be extraction or removal of minerals by any surface mining method.
(B) With respect to any contribution of property in which the ownership of the surface estate and mineral interests has been and remains separated, paragraph (1) shall be treated as met if the probability of surface mining occurring on that property is so remote as to be negligible.
(g) For purposes of this section, the term “qualified mineral interest” means either of the following:
(1) Subsurface oil, gas, or other minerals.
(2) The right to access to those minerals.
(h) The amendments made to this section by the act adding this subdivision shall apply to contributions made on or after January 1, 2010.
(Amended by Stats. 2010, Ch. 14, Sec. 72. (SB 401) Effective January 1, 2011.)
Last modified: October 25, 2018