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Source: Patricia Henschen, Creative Commons

On December 7, 2020, the Colorado Department of Revenue (CDOR) issued a general information letter [Colo. Dep’t of Revenue, Gen. Info. Letter GIL-20-003, 12/07/20] regarding the eligibility of a mutual ditch company to claim a Colorado conservation easement tax credit, except when a state governmental entity is a shareholder.  CDOR determined that a mutual ditch company formed under Article 42 of Title 7, C.R.S., or under Articles 121 to 137 of Title 7, C.R.S., is a nonprofit corporation within the definition of 1 CCR 201-2, Rule 39-22-522(1)(e) and is qualified to claim the conservation easement tax credit.  The letter clarified, however, that if a shareholder of the mutual ditch company is a state governmental entity, including municipalities and counties as political subdivisions of the state, the mutual ditch company and all of its members will be ineligible to claim the credit.  This same reasoning applies to any nonprofit corporation with a state governmental entity as a shareholder.

 

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Photo of Melinda Beck Melinda Beck

Melinda Beck is a real estate and land use attorney who has more than two decades of experience.  Melinda’s conservation law expertise includes the donation and purchase and sale of conservation easements to land trusts and local governments by private landowners throughout Colorado …

Melinda Beck is a real estate and land use attorney who has more than two decades of experience.  Melinda’s conservation law expertise includes the donation and purchase and sale of conservation easements to land trusts and local governments by private landowners throughout Colorado and nationally. She represents land trusts and private landowners regarding all issues related to conservation easement transactions and stewardship, including obtaining discretionary approvals and amendments to conservation easements. She is an emeritus member of the Land Trust Alliance Conservation Defense Advisory Council. Melinda has a degree in Economics from Pomona College and a law degree from the University of Denver, Sturm College of Law.

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