Colorado Tax Incentives

Colorado is one of only a handful of states in the nation to offer a transferable tax credit for the donation by a Colorado taxpayer of a qualifying conservation easement.  Among other things, Colorado’s program allows a donating landowner the option to:

• Sell his/her state tax credits in a regulated tax credit market for immediate cash compensation, or

• Apply the tax credit against the landowner’s own state tax obligation, with a 20 year carry forward period.

Here’s how a conservation tax credit sale works:

• Taxpayers qualified to claim the conservation tax credit must be Colorado residents, C Corporations, trusts, estates, or members of a pass-through entity who receive the credit from the entity.

• The taxpayer’s conservation easement donation must be in perpetuity and must qualify as a charitable contribution for federal income tax purposes.

• The value of your conservation easement donation will be established by a qualified appraisal.  Conservation Easement appraisals are a little specialized.  Contact BCRLT for a list of Qualified Conservation Easement Appraisers working in the BCRLT service area.

• The value of the tax credit available on a qualified conservation easement donation will be 75% of the first $100,000 value of the conservation easement donation, plus 50% of the remaining value up to a maximum $1.5 million credit per conservation easement donation.  Only one qualified conservation easement donation is allowed per year.

• A tax credit broker can help you prepare for the sale of your tax credits and find a buyer at the going market rate which will be discounted from the full value of the tax credit typically 15% - 20%. Contact BCRLT for a list of conservation easement tax credits brokers.

• Qualifying participation in state and federal tax incentive programs require compliance with strict standards and criteria. Although BCRLT staff makes every effort to answer your questions and ensure that the technical requirements of the Tax Code are met, BCRLT cannot guarantee that a Federal tax deduction or State tax credit will be allowed. BCRLT strongly recommends that Landowners work with qualified tax professionals and financial advisers in addition to a conservation tax credit broker on each conservation easement.


FURTHER INFORMATION ON THE COLORADO CONSERVATION TAX CREDIT PROGRAM
Colorado Coalition of Land Trusts (CCLT) - http://www.cclt.org/cclt/

Colorado Department of Revenue - http://www.colorado.gov/revenue


Colorado Division of Real Estate, Conservation Easement Program - http://cdn.colorado.gov/cs/Satellite/DORA-DRE/CBON/DORA/1251623056787