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.