Chapter 5Criteria for Acceptance of Property

Section § 37015

Explanation

This law section outlines criteria for approving contributions of property for conservation purposes. These include properties that support habitat and multispecies conservation plans, facilitate the recovery of endangered species, or provide wildlife corridors. It also covers contributions of agricultural land threatened by development, where land must be set aside for conservation through specific programs. Water rights or associated lands can also be contributed, provided they enhance species recovery and comply with water regulation standards. Finally, properties can be approved if used for parks, open spaces, or enhancing public recreational areas.

The board shall approve only contributions of properties that meet one or more of the following criteria:
(a)CA Public Resources Code § 37015(a) The property will help meet the goals of a habitat conservation plan, multispecies conservation plan, natural community conservation plan, or any other similar plan subsequently authorized by statute that is designed to benefit native species of plants, including, but not limited to, protecting forests, old growth trees, or oak woodlands, and animals and development. In proposing and approving the acceptance of contributed property pursuant to this subdivision, the recovery benefits for listed species, the habitat value of the property, the value of the property as a wildlife corridor, and similar habitat-related considerations shall be the criteria on which the acceptance is based.
(b)CA Public Resources Code § 37015(b) The property will provide corridors or reserves for native plants and wildlife that will help improve the recovery possibilities of listed species and increase the chances that the species will recover sufficiently to be eligible to be removed from the list, or will help avoid the listing of species pursuant to the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code) or the federal Endangered Species Act (16 U.S.C. Sec. 1531 et seq.), or protect wetlands, waterfowl habitat, or river or stream corridors, or promote the biological viability of important California species.
(c)CA Public Resources Code § 37015(c) The property interest is a perpetual conservation easement over agricultural land, or is a permanent contribution of agricultural land, that is threatened by development and is located in an unincorporated area certified by the secretary to be zoned for agricultural use by the county. Property accepted pursuant to this subdivision shall be accepted pursuant to the California Farmland Conservancy Program Act established by Division 10.2 (commencing with Section 10200), pursuant to the agricultural conservation program of the Coastal Conservancy, or pursuant to the Bay Area Conservancy Program established pursuant to Chapter 4.5 (commencing with Section 31160) of Division 21.
(d)Copy CA Public Resources Code § 37015(d)
(1)Copy CA Public Resources Code § 37015(d)(1) The property interest is a water right, or land with an associated water right, and the contribution of the property will help improve the chances of recovery of a listed species, will reduce the likelihood that any species of fish or other aquatic organism will be listed pursuant to the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code)) or the federal Endangered Species Act (16 U.S.C. Sec. 1531 et seq.), will improve the protection of listed species, or will improve the viability and health of fish species of economic importance to the state. The donee receiving the water right, or land with an associated water right, shall ensure that it shall retain title to the water right, and that the water shall be used to fulfill the purposes for which the water right or land associated with a water right is being accepted.
(2)CA Public Resources Code § 37015(d)(2) Any contribution of a water right that includes a change in the point of diversion, place of use, or purpose of use may be made only if the proposed change will not injure any legal user of the water involved and is made in accordance with either Chapter 10 (commencing with Section 1700), or Chapter 10.5 (commencing with Section 1725), of Part 2 of Division 2 of the Water Code.
(e)CA Public Resources Code § 37015(e) The property will be used as a park or open space or will augment public access to or enjoyment of existing regional or local park, beach, or open-space facilities, or will preserve archaeological resources.
habitat conservation plan multispecies conservation plan natural community conservation plan native species wildlife corridors California Endangered Species Act Federal Endangered Species Act agricultural conservation California Farmland Conservancy Program Coastal Conservancy Bay Area Conservancy Program water rights species recovery park and open space development archeological resource preservation
(Amended (as added by Stats. 2000, Ch. 113) by Stats. 2000, Ch. 900, Sec. 7. Effective January 1, 2001.)

Section § 37016

Explanation

This law outlines the conditions under which the board can approve donations of property for tax credits. To qualify, the property must meet specific IRS requirements for a charitable contribution. Partial donations or sales below market value may still qualify, but only for the portion meeting these standards. If a property donation is tied to fulfilling a public agency-imposed condition, it usually won't qualify for tax credits. Additionally, any property with hazardous materials can't be approved unless a cleanup plan is in place and adequately funded. Alternatively, if it's assessed that such materials don't pose significant health or environmental risks, the donation can still go forward without fulfilling cleanup requirements.

(a)CA Public Resources Code § 37016(a) The board shall grant approval of a proposed contribution of property under the program only upon a determination that:
(1)Copy CA Public Resources Code § 37016(a)(1)
(A)Copy CA Public Resources Code § 37016(a)(1)(A) The donation of property satisfies the requirements for a qualified contribution pursuant to Section 170 of Title 26 of the United States Code. If only a portion (either an undivided fractional interest in the entire property or one or more discrete parcels) of a proposed conveyance of property satisfies the requirements of Section 170 of Title 26 of the United States Code, or if the property is sold for less than fair market value, only that portion, or the amount representing the difference between the amount paid by the donee and the fair market value, shall be eligible for the tax credit, to the extent permitted by Section 170(h) of Title 26 of the United States Code. The board may segregate eligible and ineligible interests in property proposed to be contributed pursuant to this division. The donor shall receive no other valuable consideration for the donation of property subject to the tax credit.
(B)CA Public Resources Code § 37016(a)(1)(A)(B) For purposes of this division, if the property is proposed to be donated to satisfy a condition imposed upon the donor by any lease, permit, license, certificate, or other entitlement for use issued by one or more public agencies, including, but not limited to, the mitigation of significant effects on the environment of a project pursuant to an approved environmental impact report or mitigated negative declaration required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000)), that property shall not qualify for the credit provided in Section 17053.30 or 23630 of the Revenue and Taxation Code.
(2)CA Public Resources Code § 37016(a)(2) There has been no release or threatened release of a hazardous material on the property, unless all of the following occur:
(A)CA Public Resources Code § 37016(a)(2)(A) A final remedy in response to the release has been approved by the Department of Toxic Substances Control pursuant to Chapter 6.5 (commencing with Section 25100) or Chapter 6.86 (commencing with Section 25396) of Division 20 of, or Part 2 (commencing with Section 78000) of Division 45 of, the Health and Safety Code, or the appropriate California regional water quality control board pursuant to Chapter 6.7 (commencing with Section 25280) of Division 20 of the Health and Safety Code.
(B)CA Public Resources Code § 37016(a)(2)(B) The donor or donee have agreed to implement the final remedy approved pursuant to subparagraph (A).
(C)CA Public Resources Code § 37016(a)(2)(C) The donor or donee have agreed to fund and have made adequate funding available to pay for the response action, as defined by Section 78140 of the Health and Safety Code.
(b)CA Public Resources Code § 37016(b) Notwithstanding paragraph (2) of subdivision (a), a donation of property containing hazardous materials may be accepted under the program without satisfying the requirements of paragraph (2) of subdivision (a) if the donee determines, based on written findings from the Department of Toxic Substances Control and the California regional water quality control board with jurisdiction over the property, that the hazardous materials present will pose no substantial risk to human health or the environment and no substantial risk of liability on the donee under the conditions under which the property will be used. The Department of Toxic Substances Control and the California regional water quality control board with jurisdiction over the property shall carry out their normal due diligence when developing the written findings that will be the basis for the written determination regarding the presence and risk of toxic materials on the property by the Department of Toxic Substances Control or the regional board, whichever is applicable. As used in this subdivision, “hazardous materials” has the same meaning as contained in subdivision (d) of Section 25260 of the Health and Safety Code.
property donation tax credit eligibility qualified contribution IRS Section 170 environmental impact fair market value hazardous material cleanup public agency conditions California Environmental Quality Act mitigation of environmental effects property conveyance risk assessment Department of Toxic Substances Control regional water quality control board charitable contribution requirements
(Amended by Stats. 2022, Ch. 258, Sec. 119. (AB 2327) Effective January 1, 2023. Operative January 1, 2024, pursuant to Sec. 130 of Stats. 2022, Ch. 258.)