New Conservation Easement Law in Colorado

Good morning readers,

Colorado Governor Bill Owens has officially signed House Bill 06-1354 into law. The bill contains major improvements to Colorado’s conservation easement tax credit program. The bill creates incentives for landowners with larger tracts, who will be rewarded for protecting more land per donation. This will help larger land conservation transactions sunset in a shorter period of time.

This new law will remove two-tiered structure with a single rate structure, which will allow up to 50% of the fair market value of the conservation easement to be claimed as a state tax credit. In order for the new legislation to be revenue neutral, the bill increases the maximum amount of the credit to be claimed to a higher maximum: $375,000. The first $100,000 will now be subject to 50% of the fair market value allowance for the state tax credit, which means less incentives for smaller tracts or those tracts with lesser market value. The new law will apply to conservation easements donations made after January 1, 2007.

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Channing Boucher
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