Gross Conservation Easement Credit

An income tax credit is available for tax years beginning on or after January 1, 2000, for the donation of a perpetual conservation easement in gross on real property located in Colorado. The credit is equal to the fair market value of the easement.

Conservation easement in gross is a right of the owner of the easement to prohibit certain acts with respect to the property in order to maintain the property in a manner that will preserve its value for recreation, education, habitat, open space, or historical importance. See, §38-30.5-102 C.R.S. for a complete definition.

Who Can Claim the Credit
Taxpayers qualified to claim the gross conservation easement credit (including transferees of these credits) are:

Colorado resident individual
C Corporations
Trusts
Estates
Members of pass-through entities who receive the credit from such entity, regardless of whether such members are Colorado residents.

Limits on Total Credit
The total amount of credit claimed by:

A married couple, regardless of whether they file jointly or separately,
All members of a pass-through entity, which makes a donation,
All tenants in common, joint tenants, or other similar ownership groups that donate a gross conservation easement on jointly owned land

is limited to $260,000 ($100,000 for tax years 2000-2002).

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