An Act To Provide Maine Land Conservation Tax Incentives
Maine Legislature, Session 123, LD 0544
Committee: Taxation
Sponsors: WATSON, CARTER, PIEH, SMITH, WOODBURY
Amends: 36 MRSA §5219-B

Legislative Document 
No. S44 
H.P.422 
House of Representatives, February 5, 2007 
An Act To Provide Maine Land Conservation Tax Incentives 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative WATSON of Bath. 
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MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: CARTER of Bethel, PIEH of Bremen, SMITH of 
Monmouth, WOODBURY of Yarmouth. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §5219-BB is enacted to read: 
§5219-BB. Credit for conservation or qualified conservation contribution 
1. Credit. A taxpayer who has qualified for and claimed on the taxpayer's federal 
income tax return, under Section 170 of the Code, a charitable deduction for a gift ofland 
for conservation or for a qualified conservation contribution donated after January 1, 
2007 on a qualified real property interest located in this State may claim a credit against 
the tax imposed by this Part for the applicable tax year in an amount equal to 25% of the 
total amount of the federal deduction attributable to the gift of land for conservation or to 
the qualified real property interest located in this State subject to the caps provided in 
subsection 6. 
2. 
Carry-forward. If the amount of the credit under this section exceeds the 
taxpayer's tax liability under this Part for the taxable year or if it exceeds the maximum 
credit that may be used in any particular taxable year as provided in subsection 6, the 
excess credit may be carried forward to succeeding taxable years until all the credit is 
claimed. 
3. 
Transferability. 
In addition to the carry-forward of unused credit under 
subsection 2, unused credit may be transferred, devised or distributed, with or without 
consideration. 
Written notification of the transfer, devise or distribution must be 
provided to and approved by the assessor with the unused credit maintaining all its 
original attributes in the hands of the recipient. 
4. 
Limitation. In the hands of the original donor of a qualified conservation 
contribution of a qualified real property interest or of a gift of land for conservation and 
of any subsequent transferee, devisee or distributee, the credit allowed by this section that 
may be used to offset income tax liability in anyone taxable year is limited to an amount 
that, when combined with all other state income tax credits of the taxpayer, does not 
exceed the taxpayer's total state income tax liability for the taxable year. 
5. 
Qualified appraisal. The fair market value of a qualified donation made 
pursuant to this section must be substantiated by a qualified appraisal prepared by a 
qualified appraiser as defined under applicable federal law and regulations applicable to 
charitable contributions. 
6. 
Maximum credit. The credit provided for in this section may not exceed 
$500,000 for a return filed under chapter 817 or 819 or $250,000 for other returns filed 
under this Part. 
7. 
Donative intent. In addition to the donative intent required by Section 170 of 
the Code, a credit is not allowed for any noncash charitable contribution in the claimed 
amount of $100,000 or more unless the donor has a donative intent that meets the 
following standa~ds. 
A. 
The donor must be motivated by detached and disinterested generosity 
benefiting a charitable purpose rather than expected economic benefit. 
B. 
A noncash charitable contribution by a donor given to comply with any state or 
federal environmental or other regulatory requirement, for the purpose of obtaining 
road, water or sewer services or in conjunction with obtaining a grant or a 
subdivision, building, zoning, environmental, mitigation or similar permit or approval 
from any government is deemed not to have the requisite donative intent absent 
extraordinary circumstances. 
C. 
A contribution of an otherwise qualified conservation contribution as defined in 
Section 170(h) of the Code is deemed not to have the requisite donative intent if the 
II 
underlying property is used for or associated with the playing of golf or is planned to 
be so used or associated. 
The assessor shall examine the substance rather than merely the form of the contribution 
and related and surrounding transactions and may use the step transaction, economic 
reality, quid pro quo, personal benefit and other judicially developed doctrines in 
determining whether the requisite donative intent is present. 
SUMMARY 
This bill provides a transferable income tax credit for voluntary contributions of land 
for conservation and for conservation easements that qualifY as charitable donations 
under the federal income tax. The credit is equal to 25% of the value of the donation up 
to $500,000 for corporate donors and $250,000 for other donors.