HB19-1264 Working Group

The HB19-1264 Working Group was formed pursuant to the 2019 HB19-1264 legislation, which was signed into law by Governor Polis on June 3, 2019. The law extends the Conservation Easement Oversight Commission and the Division of Conservation program to certify conservation easement holders to July 1, 2026 (it was previously scheduled to sunset in 2019).

The working group was established to resolve outstanding challenges of the program prior to this oversight, specifically around landowner settlements, orphaned easement administration and alternative valuation methods. Representatives of Keep It Colorado were appointed to the working group alongside seven other legislatively appointed members, including landowners, conservation attorneys and land trust representatives, however, Keep It Colorado did not participate as an organization.

The working group and its issue teams discussed policy recommendations throughout the year at meetings that were open to the public, and voted on final recommendations in November 2019. On December 5, 2019 Keep It Colorado’s board of directors unanimously voted to endorse the policy recommendations of the HB19-1264 Working Group as part of its Policy Platform.

Policy Proposal Highlights

1.      Landowner Settlements

The proposed policy would reinstate the fair market value of disallowed credits between 2000 and 2013, less any settlement values with the Colorado Department of Revenue. Settlements could be in the form of credits or refunds and may cost as much as $147 million. The recommendation is to fund payments from previous years’ unused tax credit caps or, if needed, from up to half of future years’ credit cap.

2.      Orphaned Easement Administration

Orphaned or abandoned easements would be evaluated by the Division of Conservation and the Conservation Easement Oversight Commission to determine which easements can be readily transferred to a qualifying entity, which easements need to be amended before being transferred, and which easements cannot be reformed. For easements placed in the first two categories, the Division of Conservation would work with interested conservation organizations on the assignment of those easements. Easements in the third category would be submitted to the Attorney General’s office to process for extinguishment.

3.      Alternative Valuation Methods

This proposed policy would adjust the tax credit formula to increase the percentage that a grantor can claim (up to 90%). A pilot program for alternative valuation was not finalized. The recommendation is to continue that research and planning until a pilot program is developed.

appointed members

co-chairs

  • Alan Gentz, landowner

  • Erik Glenn, executive director, Colorado Cattlemen’s Agricultural Land Trust

Additional Members

In partnership with

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