(A) There shall be allowed as a tax credit against the income tax liability of a taxpayer an amount equal to fifty percent of the costs incurred by the taxpayer for habitat management or construction and maintenance of improvements on real property that are made to land as described in Section 50-15-55(A) and which meets the requirements of regulations promulgated by the Department of Natural Resources pursuant to Section 50-15-55(A). For purposes of this section, "costs incurred" means those monies spent or revenue foregone for habitat management or construction and maintenance, but does not include revenue foregone as increases in land values or speculative costs related to development.
(B) All costs must be incurred on land that has been designated as a certified management area for endangered species enumerated in Section 50-15-40 or for nongame and wildlife species determined to be in need management under Section 50-15-30.
(C) The tax credit allowed by this section must be claimed in the year that such costs are incurred as provided for in subsection (B). The credit established by this section taken in one year may not exceed fifty percent of the taxpayer's income tax liability for that year. If the amount of the credit exceeds the taxpayer's income tax liability for that taxable year, the taxpayer may carry forward any excess for up to ten years.
(D) If during any taxable year the landowner voluntarily chooses to leave the agreement made concerning the certified areas after taking the tax credit, then the taxpayer's tax liability for the current taxable year must be increased by the full amount of any credit claimed in prior years with respect to the property.
(E)
(1) An "S" corporation or partnership that qualifies for the credit under this section as an "S" corporation or partnership entitles each shareholder of the "S" corporation or partner of the partnership to a nonrefundable credit against taxes. Any credit generated by an "S" corporation must first be used against any tax liability of the "S" corporation under Section 12-6-530. Any remaining credit passes through to the shareholders of the "S" corporation.
(2) The amount of the credit allowed a shareholder, partner, or owner of a limited liability company pursuant to this section is equal to the shareholder's percentage of stock ownership or partner's interest in the partnership, for the taxable year multiplied by the amount of the credit that the taxpayer would have been entitled to if it were taxed as a corporation.