WeVote
Log In

Bill

Bill

A 197

Creates the Brooklyn health care commission

2025 Regular Session Introduced by Brian Cunningham and 2 co-sponsors

NJ A197 creates a gross income tax deduction for selling real property to a qualified conservation org, for full or bargain sales, mirroring federal IRC 170, effective immediately.

REFERRED TO CHILDREN AND FAMILIES
0
WeVote Research Nonpartisan
Bill Summary · A 197

Summary: New Jersey A 197 – Conservation Real Property Sale Tax Deduction

Note: The bill text provided describes an Act expanding New Jersey’s gross income tax treatment for certain sales or bargains sales of real property to conservation organizations. It includes amendments to existing law and defines specific terms related to conservation programs.

What the bill would do (purpose and intent)

  • Create a new gross income tax deduction for taxpayers who sell an interest in real property located in New Jersey to a qualified conservation organization.
  • Allow deductions for both full market value sales and bargain sales, with the deduction matched to the federal framework for conservation contributions.
  • Enhance incentives for land preservation and conservation programs by aligning state tax benefits with federal treatment of conservation transfers.

Key provisions and changes

New deduction for sale of conservation real property (Introduced section)

  • A taxpayer may deduct, against gross income, a portion of the consideration received for the sale of a real property interest to a qualified conservation organization.
  • The deduction amount equals the capital gain realized, as determined for federal income tax purposes.
  • Bargain sales (where the buyer pays less than full market value) are included; the donor must allocate the property’s cost basis between the gift element and the sale element based on fair market value.
  • If a bargain sale deduction is claimed, it does not preclude claiming the qualified conservation contribution deduction for the same property if federal section 170 requirements are satisfied.

Definitions (new section)

  • Bargain sale: Donor receives less than full market value; transaction may be treated for federal tax purposes as part sale, part charitable donation; basis allocated proportionally.
  • Full market value sale: Transfer priced as open market between willing parties with no coercion.
  • Qualified organization: Includes governmental units, charitable trusts, foundations, or nonprofits participating in programs such as Green Acres, Blue Acres, farmland preservation, historic preservation, Highlands Transfer Development Rights, various open-space and conservation programs, and wildlife/hunting/fishing conservation programs.

Amendment to existing deduction (P.L. 1999, c. 372)

  • The existing deduction for qualified conservation contributions (under federal IRC 170) is mirrored in state law: the deduction in New Jersey equals the federal deduction amount applicable to the conservation contribution.
  • The bill expressly covers the charitable donation portion of a bargain sale for which a deduction is allowed under the new section.

Effective date

  • Effective immediately upon enactment.
  • Applies to taxable years beginning after the date of enactment.

Who is affected

  • Taxpayers who sell conservation-related real property interests to qualified organizations (including government entities and nonprofits).
  • Qualified organizations participating in conservation programs listed in the bill.
  • Practitioners and sellers seeking to maximize after-tax proceeds from land preservation transactions.

Legislative status and related actions

  • Introduced in the Assembly on January 9, 2024.
  • Referred to Assembly Appropriations (initial action).
  • As of January 8, 2025, referred to the Committee on Children and Families (status shown as REFERRED TO CHILDREN AND FAMILIES).
  • Related bills/companions include S 3287 and S 6107, with prior-session A 9984 and A 1738.

Practical implications

  • The bill would broaden the state’s tax incentives for land conservation, potentially encouraging more sales or bargain sales of conservation land to qualified organizations.
  • By aligning state treatment with federal 170 deductions, it aims to reduce after-tax costs for sellers and complement conservation funding programs.

If you’d like, I can compare this to the federal 170 framework in more detail or map out a hypothetical example (full sale vs. bargain sale) to illustrate tax outcomes under the bill.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.