Colorado Legislature Increases Benefits for Conservation Easements

Photo of old cabins on homestead

Colorado Legislature Increases Benefits for Conservation Easements

For many years, the State of Colorado has had a specialized tax credit in place to encourage landowners to conserve their property with a Conservation Easement. Recently the Colorado General Assembly voted to substantially increase these tax credit incentives through passage of the Conservation Easement Enhancement and Rural Stimulus Act , also known as HB21-1233.

The new law increases the state tax credit awarded for a qualified Conservation Easement donation to 90% of the donated value. Previously, tax credits amounted to a little over 50% of donated value. The state tax credits awarded are transferrable in nature, meaning that they can be sold for cash. Landowners who donate a Conservation Easement may also be eligible for additional tax benefits including a federal charitable deduction and a reduction in estate or property taxes.

This new legislation makes the donation of a Conservation Easement more financially rewarding than ever, and presents a financially viable alternative for many to subdividing and developing their land.

If you own property and have been thinking about conserving it, please contact Dylan Sondermann, MALT’s Land and Water Conservation Director, or call 303-679-0950.