|
|
Colorado State Gross
Conservation Easement
Income Tax Credit*
-
The Colorado
Conservation Tax Credit is the single most progressive state-sponsored tax
credit incentive, for protecting private land, that is in existence. It
is unique in the nation.
-
Qualified private
property owners can claim a fifty percent (50%) tax credit of the value of
the donated portion of a conservation easement, on their state income tax
return for up to a total of $375,000 in a single tax year.
-
To claim the maximum
allowable conservation tax credit of $375,000 in a single year – the
property owner would be donating an easement, or portion of an easement,
valued at approximately $750,000.
-
The qualified property
owner can 1) apply the conservation tax credit against their state income
tax liability, 2) claim a cash refund from the state on revenue positive
years, or 3) transfer (sell) the tax credit to another taxpayer that needs
it for their own state income tax liability.
-
It is the legal ability
to transfer (sell), for cash, the conservation tax credit that makes
Colorado’s program a one-of-a-kind land protection incentive.
-
To qualify for the
credit a property owner must donate the easement or a portion thereof to a
charitable non-profit conservation organization, such as a land trust or a
governmental entity.
-
Conservation tax
credits are currently returning about 80 to 82% of their face value to
property owners that sell them using the services of a professional tax
credit broker. The credits are discounted for the buyer plus the broker
retains a fee for services.
*MLT provides this information for the
purpose of general knowledge. It does not constitute legal advice or opinion in
any way. As these laws and regulations change over time, and as transcription
errors can and do occur, we recommend that you obtain the actual text from
qualified sources. You are urged to consult your own lawyer regarding specific
legal questions you may have.
|
