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Georgia Conservation Tax Credit Regulation Amended

In the past few years many of our clients have taken advantage of the Georgia conservation land tax credit.  Effective November 1, 2012, the regulations regarding these credits (Reg. §560-7-8-.50), have been amended to include:
  • The State Properties Commission is now responsible for approving the appraisal amount submitted or for recommending a lower appraisal amount based on its review.
  • The Department of Natural Resources (DNR) is responsible for determining that the qualified donation is suitable for conservation purposes and meets the additional requirements.
  • A taxpayer seeking to claim the credit must submit Form IT-CONSV, certification from the DNR, a copy of the State Property Commission’s determination, and the appraisal of the donated property with the taxpayer’s Georgia tax return in the tax year in which the qualified donation occurred.
  • For qualified donations made in taxable years beginning on or after January 1, 2013, no credit is allowed with respect to any amount deducted from taxable net income by the taxpayer as a charitable contribution. Therefore, taxpayers claiming the credit must add back the amount of such federal deduction on their Georgia return.
These are substantial changes that will both increase the assuredness of the credit and decrease the ultimate tax benefit. Credits claimed on prior returns are not affected by the amendment.