On May 3, Governor Deal signed HB 1014 which extended the Conservation Tax Credit Program for an additional five years to December 31, 2021. DOR has now published a proposed amendment to the current rule to implement the new law at: https://dor.georgia.gov/documents/proposed-rule-560-7-8-50- conservation-tax-credit. Comments on the proposed rule are due by October 24 (see below for commenting details).
Changes to the current rule include (1) how to claim the tax credit; (2) how to transfer tax credits; and (3) sunset date. The proposed rule does not address how a donor/taxpayer is to know when the $30 million annual programmatic cap is about to be exceeded; tax credit claims received after the cap has been reached are denied and cannot be submitted for reconsideration (see rule section 8 (d) and (e).
DOR plans to adopt the proposed rule at 10:00 am on October 24 at DOR’s headquarters, Suite 15300, 1800 Century Blvd NE, Atlanta 30345-3205. Comments must be received by then. You can mail your comments to the Commissioner at the above address or you can send them electronically to firstname.lastname@example.org. You can also fax your comments to 404-417-2293. Please reference “Notice Number IT-2016-&” on all comments.
Last year, Governor Deal signed legislation (HB 464) which would terminate the land conservation tax credit at the end of 2016. This year, on May 3, Governor Deal signed legislation that would turn the tax credit spigot back on through December 31, 2021. The amount of the tax credit remains the same: $250,000 for individuals and $500,000 for partnerships. The current annual programmatic cap of $30 million remains. So does the two conservation purposes requirement. The new law requires DNR to prepare a report at the end of the five years to include information on the number of applications and acres donated, the value of the donations, the total amount of tax credits granted and the direct and indirect benefits to the state. At the end of 2021, DNR “shall accept no new applications for the tax credits” and the spigot will be turned off again.