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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0569.01 Sam Anderson x4218 HOUSE BILL 26-1230
House Committees Senate Committees
Finance
A BILL FOR AN ACT
CONCERNING THE EXTENSION OF THE CONSERVATION EASEMENT TAX101
CREDIT THROUGH INCOME TAX YEAR 2036.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
Under current law, the conservation easement tax credit (credit)
may be claimed through state income tax year 2031. The bill amends the
credit to allow taxpayers to claim the credit through state income tax year
2036.
HOUSE SPONSORSHIP
Martinez and Velasco, Bacon, Caldwell, Camacho, Duran, Garcia, Gonzalez R., Hartsook,
Lukens, Mabrey, Mauro, McCormick, Nguyen, Richardson, Soper, Stewart K., Stewart R.,
Taggart, Titone, Woodrow, Zokaie
SENATE SPONSORSHIP
Roberts and Kirkmeyer, Amabile, Baisley, Bridges, Bright, Carson, Catlin, Frizell,
Kolker, Lindstedt, Liston, Marchman, Mullica, Pelton R., Rich, Simpson, Snyder, Wallace,
Zamora Wilson
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-22-522, amend2
(2), (2.5), and (15); and add (14.5) as follows:3
39-22-522. Credit against tax - conservation easements -4
definitions - tax preference performance statement - repeal.5
(2) (a) For income tax years commencing on or after January 1,6
2000, but prior to January 1, 2014, and, with regard to any credit over the7
amount of one hundred thousand dollars, for income tax years8
commencing on or after January 1, 2003, but before January 1, 20329
JANUARY 1, 2037, subject to the provisions of subsections (4) and (6) of10
this section, there shall be allowed a credit with respect to the income11
taxes imposed by this article to each taxpayer who donates during the12
taxable year all or part of the value of a perpetual conservation easement13
in gross created pursuant to article 30.5 of title 38 upon real property the14
taxpayer owns to a governmental entity or a charitable organization15
described in section 38-30.5-104 (2). The credit shall only be allowed for16
a donation that is eligible to qualify as a qualified conservation17
contribution pursuant to section 170 (h) of the internal revenue code, as18
amended, and any federal regulations promulgated in connection with19
such section. The amount of the credit shall not include the value of any20
portion of an easement on real property located in another state.21
(b) For income tax years commencing on or after January 1, 2014,22
but before January 1, 2032 JANUARY 1, 2037, and, with regard to any23
credit over the amount of one hundred thousand dollars, for income tax24
years commencing on or after January 1, 2003, but before January 1, 203225
JANUARY 1, 2037, subject to the provisions of subsections (4) and (6) of26
this section, there shall be allowed a credit with respect to the income27
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taxes imposed by this article to each taxpayer who donates during the1
taxable year all or part of the value of a perpetual conservation easement2
in gross created pursuant to article 30.5 of title 38 upon real property the3
taxpayer owns to a governmental entity or a charitable organization4
described in section 38-30.5-104 (2). The credit shall only be allowed for5
a donation that meets the requirements of section 170 of the federal6
"Internal Revenue Code of 1986", as amended, and any federal7
regulations promulgated in accordance with such section. The amount of8
the credit shall not include the value of any portion of an easement on real9
property located in another state.10
(2.5) Notwithstanding any other provision of this section and the11
requirements of section 12-15-106, for income tax years commencing on12
or after January 1, 2011, a taxpayer conveying a conservation easement13
and claiming a credit pursuant to this section shall, in addition to any14
other requirements of this section and the requirements of section15
12-15-106, submit a claim for the credit to the division of conservation16
in the department of regulatory agencies. The division must prioritize tax17
credit applications in the order received. The division must assign each18
application with the date and time received based on the order in which19
a completed application was submitted pursuant to section 12-15-106 (5).20
Incomplete applications do not get priority in the review process.21
Disapproved applications lose their priority in the review process. After22
certificates have been issued for credits that exceed an aggregate of23
twenty-two million dollars for all taxpayers for the 2011 and 201224
calendar years, thirty-four million dollars for the 2013 calendar year,25
forty-five million dollars for each of the 2014 to 2024 calendar years, and26
fifty million dollars for each of the 2025 to 2031 2036 calendar years, any27
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claims that exceed the amount allowed for a specified calendar year shall1
be issued for use in the next year for which the division has not issued2
credit certificates in excess of the amounts specified in this subsection3
(2.5). The division shall not issue credit certificates that exceed4
twenty-two million dollars in each of the 2011 and 2012 calendar years,5
thirty-four million dollars for the 2013 calendar year, forty-five million6
dollars for each of the 2014 to 2024 calendar years, and fifty million7
dollars for each of the 2025 through 2031 2036 calendar years. No claim8
for a credit is allowed for any income tax year commencing on or after9
January 1, 2011, unless a certificate has been issued by the division. If all10
other requirements under section 12-15-106 and this section are met, the11
right to claim the credit is vested in the taxpayer at the time the credit12
certificate is issued. In the case of a tax credit certificate issued to a13
taxpayer who files an income tax return for a tax year other than a14
calendar year, the credit must be used in the income tax year that begins15
during the calendar year for which the tax credit certificate is issued.16
(14.5) (a) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES17
THAT:18
(I) O VER THE LAST SIXTY YEARS , COLORADO FAMILIES HAVE19
CONSERVED OVER THREE MILLION FIVE HUNDRED THOUSAND ACRES OF20
WORKING FARMS, RANCHES, AND PRIVATE LANDS ACROSS THE STATE;21
(II) S INCE 2000, COLORADO HAS PROACTIVELY INVESTED IN22
CONSERVATION THROUGH THE CONSERVATION EASEMENT TAX CREDIT23
PROGRAM;24
(III) T HE CONSERVATION EASEMENT TAX CREDIT PROGRAM25
INCENTIVIZES PRIVATE LANDOWNERS TO VOLUNTARILY PROTECT THEIR26
PROPERTIES, WHICH CREATES PUBLIC BENEFITS TO COLORADO'S LANDS,27
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WATERS, WILDLIFE, AND PEOPLE;1
(IV) T HE BENEFITS OF CONSERVATION ARE UNIQUE AND2
WIDE-RANGING. CONSERVATION HAS CONTRIBUTED SIGNIFICANTLY TO THE3
PROTECTION OF WILDLIFE HABITAT , CRITICAL WETLANDS , URBAN OPEN4
SPACE, AND WORKING FARMS AND RANCHES;5
(V) T HE CONSERVATION EASEMENT TAX CREDIT PROGRAM HAS6
AIDED COLORADO IN REDUCING ITS CARBON EMISSIONS AND7
ACCOMPLISHING ITS BIODIVERSITY GOALS , WHILE SUPPORTING RURAL8
ECONOMIC RESILIENCY, BENEFITING ALL COLORADANS;9
(VI) I N PURSUIT OF GREATER EQUITY IN CONSERVATION , IT IS10
CRUCIAL TO ENHANCE PROGRAMS THAT PROMOTE PUBLIC BENEFITS FOR11
ALL COLORADANS;12
(VII) E QUITY IN CONSERVATION REQUIRES ONGOING13
COLLABORATION WITH PRIVATE LANDOWNERS , STATE AND FEDERAL14
PUBLIC LAND MANAGERS , AND COUNTIES AND MUNICIPALITIES .15
UNDERSCORING AND INVESTING IN THE INCLUSION OF UNDERSERVED16
COMMUNITIES, TRIBES , AND HISTORICALLY MARGINALIZED LAND17
INTERESTS WILL FURTHER AMPLIFY THESE EFFORTS; AND18
(VIII) IT IS IN THE BEST INTERESTS OF COLORADANS TO ENHANCE19
THE CONSERVATION EASEMENT TAX CREDIT PROGRAM.20
(b) (I) I N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH21
REQUIRES EACH BILL THAT EXTENDS AN EXPIRING TAX EXPENDITURE TO22
INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT , THE GENERAL23
ASSEMBLY FURTHER FINDS AND DECLARES THAT THE GENERAL PURPOSE24
OF THE EXTENSION OF THE EXPIRING TAX CREDIT PROVIDED FOR IN25
SUBSECTIONS (2) AND (2.5) OF THIS SECTION IS TO INDUCE CERTAIN26
BEHAVIOR BY TAXPAYERS. SPECIFICALLY, THIS EXTENSION OF AN EXPIRING27
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TAX EXPENDITURE IS INTENDED TO INDUCE PRIVATE LANDOWNERS TO1
VOLUNTARILY PROTECT THEIR PROPERTIES THROUGH CONSERVATION2
EASEMENTS.3
(II) T HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL4
MEASURE THE EFFECTIVENESS OF THE TAX CREDITS IN ACHIEVING THE5
PURPOSES SPECIFIED IN SUBSECTION (14.5)(b)(I) OF THIS SECTION BASED6
ON THE NUMBER AND VALUE OF THE CREDITS CLAIMED AND THE TOTAL7
AMOUNT OF PROPERTY PROTECTED BY CONSERVATION EASEMENTS.8
(15) This section is repealed, effective January 1, 2052 JANUARY9
1, 2057.10
SECTION 2. Safety clause. The general assembly finds,11
determines, and declares that this act is necessary for the immediate12
preservation of the public peace, health, or safety or for appropriations for13
the support and maintenance of the departments of the state and state14
institutions.15
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