Tax Credits & Conservation Easements

Background~In response to citizens' concern over the loss of open space in Colorado, the General Assembly passed a series of? laws which gave tax credits to land owners who donate conservation easements.

Since 1999, surplus credits have been transferable to third parties that owe Colorado state income tax. However, the vast majority of tax-payers do not know these programs exist.

Land owners traditionally have not had the necessary tax liability to use 100% of their tax credits. This excess left the land owner with an unusable surplus of credits.

In an effort to incentivize land owners with these surplus credits, the Colorado Legislature made them transferable to third parties. This legislative change created a new market for these excess credits.

The program has been an overwhelming success. In 2003 alone, nearly $24 million in tax credits were issued.