Code of Massachusetts Regulations
301 CMR - EXECUTIVE OFFICE OF ENERGY AND ENVIRONMENTAL AFFAIRS
Title 301 CMR 14.00 - Conservation land tax credit
Section 14.02 - Definitions

Agency means any of the agencies under the Massachusetts Executive Office of Energy and Environmental Affairs whose authority and purposes, include, but are not necessarily limited to, the care, custody and control of property interests for Article 97 purposes.

Applicant means a Massachusetts Taxpayer, who on or after January 1, 2011, applies to EEA for certification that the Taxpayer's Property Interest has sufficient natural resources and is in the public interest if protected in perpetuity to be deemed a Qualified Donation.

Bargain Sale means the sale of a real property interest at a cost below fair market value as evidenced by a Qualified Appraisal.

Certified Land means a Property Interest, including a Restriction, the donation or bargain sale of which has been certified by EEA to have sufficient natural resources to qualify to be in the public interest for perpetual natural resource protection. Land that may qualify as Certified Land may include the following resources: drinking water supplies, wildlife habitats and biological diversity, agricultural and forestry production, recreational opportunities, or scenic and cultural values, of statewide or regional significance as defined in 301 CMR 14.02 and 830 CMR 62.6.4(2) and which meets the conservation purpose requirements of Section 170(h)(4)(a) the Internal Revenue Code (IRC) as in effect for the taxable year.

Department means the Department of Revenue.

EEA means the Executive Office of Energy and Environmental Affairs.

Internal Revenue Code (IRC) means, with respect to personal income taxation under M.G.L. c. 62, the Internal Revenue Code, as defined in M.G.L. c. 62, § 1(c); and with respect to corporate excise taxation under M.G.L. c. 63, the Internal Revenue Code, in effect for the taxable year, as more fully defined in M.G.L. c. 63, § 1.

Massachusetts Conservation Land Tax Land Identification Number (LIN) means a unique Land Identification Number issued by EEA verifying that the Certified Land is a Qualified Donation.

Natural Resource Protection means the perpetual protection and conservation of land having significant natural resource qualities, pursuant to a clearly delineated Federal, State, or regional governmental conservation policy with qualities including, but not limited to, those defined by Article 97 of the Amendments to the Massachusetts Constitution, M.G.L. c. 184, §§ 31 through 33 and Section 170(h)(4)(A) and 170(h)(5)(A) of the IRC, when protection of such land will yield a significant public benefit in the public interest.

Perpetual Protection means Certified Land protected in perpetuity for Natural Resource Protection purposes by a Restriction, or Certified Land held in fee by a Public Conservation Agency and subject to Article 97 of the Amendments to the Massachusetts Constitution.

Pre-CLTC means preliminary approval byEEA that the proposed donation has sufficient natural resources that its Perpetual Protection would be in the public interest, and that the anticipated transfer of the landowner's property interest will in fact protect the Certified Land in perpetuity.

Property Interest means any deed or instrument conveying any right in real property in the commonwealth, with or without improvements thereon, that has been duly recorded in a Registry of Deeds.

Public Conservation Agency means a governmental body described in M.G.L. c. 184, § 32 with authority to hold property interests in the Commonwealth of Massachusetts for Natural Resource Protection purposes.

Qualified Appraisal means an appraisal as defined in Treas. Reg. § 1.170A-13(c)(3) and Internal Revenue Service (IRS) Notice 2006-96 that is less than one year old and meets EEA's Appraisal Standards, dated September 1, 1995.

Qualified Appraiser means a qualified appraiser as defined in Treas. Reg. § 1.170A-13(c)(5) and IRS Notice 2006-96, who has been licensed or certified by the Massachusetts Board of Registration of Real Estate Appraisers for the land that is being appraised.

Qualified Donation means a donation or the donated portion of a bargain sale of Certified Land which is made in perpetuity of a Property Interest, including a Restriction, provided that donation meets the requirements of qualified conservation contributions under section 170(h) of the IRC and 301 CMR 14.00.

Qualified Organization means a private nonprofit corporation organized for the purposes of land conservation that meets the requirements of M.G.L. c. 184, § 32, St. 2008, c. 509, and:

(a) Is authorized to do business in Massachusetts and is duly qualified as a charitable organization under section 501c(3) of the IRC;

(b) Meets the requirements of Treas. Reg. Sec. 1.170A-14(c), and therefore has the power to acquire, hold, or maintain interests in land and carry out Natural Resource Protection in the Public Interest; and

(c) Has provided suitable evidence such as a corporate or other organizational vote showing that the Qualified Organization has adopted the Land Trust Alliance's Land Trust Alliance Standards and Practices or similarly acceptable standards and practices as guidelines for the organization's operations, and commits to making continual progress toward implementation of the standards and practices;

Restriction means the conveyance of a qualified Property Interest in the form of a conservation restriction, watershed preservation restriction or agricultural preservation restriction duly established under M.G.L. c. 184, §§ 31 and 32.

Taxpayer means an individual or entity subject to taxation under M.G.L. c. 62 or M.G.L. c. 63 and entitled to take a credit under M.G.L. c. 62, § 6(p)(1) or M.G.L. c. 63, § 38AA, as applicable.

Title Examination means a title examination performed by an individual qualified to perform title examinations in Massachusetts that meets conveyancing standards, and identifies all owners of an interest in the Real Property to be donated and separately identifies those owners and their percentage interest whose signatures are necessary to convey the Certified Land and protect it in perpetuity.