Colorado Tax Credits

Colorado’s Innovative Tax Credit Program Encourages Preservation

What is the Colorado Conservation Tax Credit?

The Colorado Conservation Tax Credit (Credit) is a unique tool by which landowners can preserve their land for themselves, and for generations to come.

Colorado conservation tax credits are available to donors of “qualified” conservation agreements.  With recent improvements to the program, an updated formula for the state income tax credit allows landowners to receive 75% of the first $100,000 of the donated value of the conservation agreement and 50% of any remaining donation up to a total credit of $1.5 million.

Colorado allows these credits to be carried forward for 20 years, during which time they may be used to offset the donor’s state income tax liability, or transferred one time to other Colorado taxpayers.

 

What is a conservation agreement?

A conservation agreement is a written deed of easement between a landowner and a land trust that conserves land for its natural, recreational, scenic, historical, and productive values. The landowner continues to own and manage the land, and can pass it on to their heirs, or may choose to sell it. The Crested Butte Land Trust’s staff and legal counsel are skilled in this type of work, and their services are included at no cost to the landowner.

The Crested Butte Land Trust can recommend qualified professionals that have direct experience working with Colorado Tax Credits, and encourages all interested landowners to obtain their own tax and legal advice.

Questions? Suggestions? We’d love to hear from you. Please contact Noel Durant, Executive Director, at noel@cblandtrust.org.  Noel is typically in the office Monday through Friday, from 9 a.m. to 5 p.m.

How does the program work? The donor of a conservation agreement receives a tax credit from the state based on the value of their agreement as determined by a qualified appraisal. Colorado tax credits are transferable to other Colorado taxpayers, and may be sold for cash.