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Frequently Asked QuestionsQ: Do I have to own land to benefit from the Conservation Easement program? A: No. The easiest way to benefit from the program is by purchasing a landowner?s tax credits to offset your own tax liability. Q: If I purchase tax credits, can I apply them against my federal income tax? A: Although landowners receive a federal benefit for donating the conservation easement, only the state income tax credit is transferable, and can only be used against your state income tax. Q: When is the deadline for purchasing the tax credits? A: Starting for the year 2005, you have until your original filing date to purchase conservation tax credits. For most people, this date is April 15th, 2006. We recommend calling your CPA, Corporate Tax Manager, or CFO to verify your original filing date.Q: Who can purchase conservation easement tax credits to use them against their own tax liability? A: Individuals and companies can both utilize the benefits of purchasing conservation tax credits. Basically, if you have a Colorado income tax liability you or your company will appreciate these credits!Q: What if I expect a tax return? A: Using the conservation tax credits will give you an even bigger return.Q: Can I turn in as many tax credits as I want in order to get an even bigger return? A: No. In any given year, you may only turn in as many credits as you have tax liability. Call or ask your CPA for clarification.Q: Does the state have an information site about conservation tax credits? A: Yes. Go to the Colorado Department of Revenue's site at the following address: www.revenue.state.co.us/fyi/html/income39.html. This site discusses all aspects of the conservation tax credit program. Refer to the portion "Transferring The Credit." |
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