Colorado Gross Conservation Easement Credit
The Colorado Gross Conservation Easement Credit is a state tax incentive designed to encourage landowners to donate perpetual conservation easements on real property located in Colorado. This credit is available to individuals, estates, trusts, corporations, partnerships, and other pass-through entities who meet specific eligibility criteria.
Eligibility Requirements
- The donated conservation easement must be a perpetual conservation easement in gross.
- The easement must be created pursuant to Article 30.5 of Title 38, C.R.S.
- The real property subject to the easement must be located in Colorado.
- Donors must apply to the Division of Conservation for a tax credit certificate. No credit is allowed without an issued certificate.
Who Can Claim the Credit?
The credit is available to any "taxpayer" as defined in § 39-22-522(1)(b), C.R.S., which includes:
- Individuals
- Estates and trusts
- Domestic or foreign corporations
- Partnerships, S corporations, and other pass-through entities
- Governmental entities (even if exempt from Colorado income tax)
How to Claim the Credit
Taxpayers must file the appropriate forms with their Colorado state income tax return:
- Form DR 1305G – Gross Conservation Easement Donor Schedule (for individual donors)
- Form DR 1305E – Gross Conservation Easement Credit Transfer Schedule (for credit transfers)
- Form DR 1305F – Gross Conservation Easement Credit Pass-Through Schedule (for pass-through entities)
These forms are used in conjunction with IRS Form 8283, Noncash Charitable Contributions, for reporting the donation.
Important Notes
- The credit applies to conservation easements donated on or after January 1, 2021. For donations prior to that date, refer to FYI Income 39.
- Taxpayers must file a Colorado income tax return with all applicable parts of Form DR 1305. Failure to file may result in disallowance of credit claims.
- Additional guidance and forms can be found on the Colorado Department of Revenue’s website: Tax.Colorado.gov
Source:
Income Tax Topics: Conservation Easement Credit
FYI Income 39: Gross Conservation Easement Credit
Colorado Individual Income Tax Guide
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions.