Big Win for Conservation: Conservation Easement Tax Credit Modifications Passes into Law
Legislation incentivizes more voluntary conservation of private lands
July 1, 2021 – DENVER – On June 30, 2021, Governor Polis signed Conservation Easement Tax Credit Modifications (HB21-1233) into law. The legislation helps to accelerate land conservation in a state threatened by the ongoing climate crisis and population growth, and ensure that the state’s conservation easement tax credit program functions more effectively and efficiently. The bill was sponsored by long-time conservation champions Senator Kerry Donovan, Senator Faith Winter, Representative Dylan Roberts and Representative Perry Will.
“This is a momentous day for the conservation movement and a momentous day for Colorado,” said Melissa Daruna, executive director of Keep It Colorado. “This legislation gives greater incentive to private landowners to voluntarily conserve and protect more land – benefiting all people and wildlife who rely on clean air and water, access to local food, healthy ecosystems and the iconic views for which Colorado is known.
“Opening the door to more land and water conservation is also good for Colorado’s economy and way of life. It helps Colorado’s rural farmers and ranchers stay in production, and helps ensure that the natural assets that draw outdoor and nature enthusiasts to Colorado in the first place are here for the long term,” Daruna added.
The bill accomplishes several key policy priorities of the statewide conservation community and the nonprofit coalition Keep It Colorado. Key elements of the bill include:
Increases the tax credit incentive to up to 90 percent of the donated value of a landowner's conservation easement.
Expands the list of eligible landowners who can access the tax credit program to include certain types of water entities, such as water conservancies and irrigation and acequia organizations.
Establishes a tax credit tracking system within the Division of Conservation.
Eliminates the requirement that tax credit buyers and sellers file their returns at the same time.
Ensures that the Division of Conservation can serve as a receivership for orphaned (abandoned) easements, once a program is established, to find those easements new homes.
Keep It Colorado’s fact sheet contains additional information about the bill. The Colorado General Assembly website contains the full text of the bill.
Information about the success of the state’s conservation easement tax credit program is available in The Conservation Easement Tax Credit: 20 Years of Conservation Success in Colorado. General steps involved in donating a conservation easement are outlined in this 2-page guide.
###
