The Colorado Department of Revenue, Division of Taxation is seeking public comment on amendments to three conservation easement tax credit regulations. The amendments are intended to conform the regulations to House Bill 19-1264 signed into law on June 3, 2019, which included a number of substantive revisions to the conservation easement enabling statute (C.R.S. § 38-30.5-101, et seq.) and the conservation easement tax credit program in Colorado.
The amendments focus primarily on the legislation’s increase in the maximum amount of tax credit available from one transaction from $1,500,000 to $5,000,000. The formula to calculate the credit remains the same at 75% of the first $100,000 of the fair market value of the conservation easement and 50% of any remaining value, but the tax credits will only be issued by the state in increments of $1,500,000 per year. Additional regulations related to the application for tax credits and the issuance of tax credit certificates are available from the Colorado Division of Conservation. The Colorado Department of Revenue will accept written comments on the amendments through September 25, 2020.