Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0505.01 Jed Franklin x5484
SENATE BILL 24-126
Senate Committees House Committees
Agriculture & Natural Resources
A BILL FOR AN ACT
C
ONCERNING THE CONSERVATION EASEMENT INCOME TAX CREDIT ,101
AND, IN CONNECTION THEREWITH , EXTENDING THE102
CONSERVATION EASEMENT OV ERSIGHT COMMISSION AND THE103
CERTIFIED HOLDER PROGRAM INDEFINITELY , INCREASING THE104
LIMIT ON CONSERVATION EA SEMENT INCOME TAX CREDITS105
AVAILABLE TO DONORS IN ONE CALENDAR YEAR , AND ALLOWING106
MULTIPLE TRANSFERS OF CONSERVATION EASEMENT INCOME107
TAX CREDITS.108
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
SENATE SPONSORSHIP
Will and Winter F., Pelton R., Roberts
HOUSE SPONSORSHIP
Lukens and Lynch, Armagost, Hartsook, Martinez, Velasco
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. http://leg.colorado.gov.)
Under current law, the conservation easement oversight
commission (commission) and the certified holder program (program) are
repealed on July 1, 2026. The bill eliminates the repeal dates to extend the
commission and program indefinitely.
There is currently a cap of $45 million for the total value of
conservation easement income tax credits (credits) that may be claimed
by and credited to donors of a conservation easement in one calendar
year. Credits filed after the cap is reached are placed on a wait list for the
next calendar year. The bill increases the cap to $75 million beginning in
calendar year 2025.
Current law provides that partnerships, S corporations, or other
similar entities (pass-through entities) may not be transferees of a credit.
The bill allows pass-through entities to be transferees of a credit
beginning on January 1, 2025. The bill also allows insurance companies
to purchase credits to offset insurance premium taxes.
Currently, a credit may be transferred once, in whole or in part,
from a donor to a transferee. The bill allows a transferee to transfer a
credit to a subsequent transferee beginning with the income tax year
starting on January 1, 2025.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 12-15-103, repeal (8)2
as follows:3
12-15-103. Conservation easement oversight commission -4
created. (8) This section is repealed, effective July 1, 2026.
5
SECTION 2. In Colorado Revised Statutes, 12-15-104, repeal6
(13) as follows:7
12-15-104. Certification of conservation easement holders -8
rules - definition. (13) This section is repealed, effective July 1, 2026.9
SECTION 3. In Colorado Revised Statutes, 38-30.5-103, add (7)10
as follows:11
38-30.5-103. Nature of conservation easements in gross. (7) A12
CONSERVATION EASEMENT IN GROSS IS A REAL PROPERTY INTEREST AS13
SB24-126-2- DEFINED IN SECTION 38-30.5-102 THAT IS TO BE CREATED, ADMINISTERED,1
STEWARDED, ENFORCED, MODIFIED, AND TERMINATED PURSUANT TO THIS2
ARTICLE 30.5 AND, AS APPLICABLE, SECTION 39-22-522.3
SECTION 4. In Colorado Revised Statutes, 39-22-522, amend4
(2.5); and add (1)(c), (7.3), and (12) as follows:5
39-22-522. Credit against tax - conservation easements -6
definitions. (1) For purposes of this section:7
(c) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY8
1,
2025, "TRANSFEREE" MEANS ANY PERSON OR ENTITY FILING A STATE9
INCOME TAX RETURN OR A DOMESTIC OR FOREIGN CORPORATION SUBJECT10
TO THE PROVISIONS OF PART 3 OF THIS ARTICLE 22, A PARTNERSHIP, S11
CORPORATION, OR OTHER SIMILAR PASS-THROUGH ENTITY, ESTATE, TRUST,12
NONPROFIT ENTITY, OR AN ENTITY THAT HAS AUTHORITY TO CONDUCT13
WATER ACTIVITIES, AS DEFINED BY SECTION 37-45.1-102 (3) AND CREATED14
PURSUANT TO ARTICLE 41, 45, 46, 47, 48, OR 50 OF TITLE 37, OR ARTICLE15
42
OF TITLE 7, THAT IS TRANSFERRED A CONSERVATION EASEMENT INCOME16
TAX CREDIT PURSUANT TO SUBSECTION (7) OR (7.3) OF THIS SECTION.17
(2.5) Notwithstanding any other provision of this section and the18
requirements of section 12-15-106, for income tax years commencing on19
or after January 1, 2011, a taxpayer conveying a conservation easement20
and claiming a credit pursuant to this section shall, in addition to any21
other requirements of this section and the requirements of section22
12-15-106, submit a claim for the credit to the division of conservation23
in the department of regulatory agencies. The division shall issue a24
certificate for the claims received in the order submitted. After certificates25
have been issued for credits that exceed an aggregate of twenty-two26
million dollars for all taxpayers for the 2011 and 2012 calendar years,27
SB24-126
-3- thirty-four million dollars for the 2013 calendar year, and forty-five1
million dollars for each
OF THE 2014 TO 2024 calendar year thereafter
2
YEARS, AND SEVENTY-FIVE MILLION DOLLARS FOR EACH CALENDAR YEAR3
THEREAFTER, any claims that exceed the amount allowed for a specified4
calendar year shall be placed on a wait list in the order submitted and a5
certificate shall be issued for use of the credit in the next year for which6
the division has not issued credit certificates in excess of the amounts7
specified in this subsection (2.5); except that no more than fifteen million8
dollars in claims shall be placed on the wait list in any given calendar9
year. The division shall not issue credit certificates that exceed10
twenty-two million dollars in each of the 2011 and 2012 calendar years,11
thirty-four million dollars for the 2013 calendar year, and forty-five12
million dollars for each
OF THE 2014 TO 2024 calendar year thereafter
13
YEARS, AND SEVENTY-FIVE MILLION DOLLARS FOR EACH CALENDAR YEAR14
THEREAFTER. No claim for a credit is allowed for any income tax year15
commencing on or after January 1, 2011, unless a certificate has been16
issued by the division. If all other requirements under section 12-15-10617
and this section are met, the right to claim the credit is vested in the18
taxpayer at the time a credit certificate is issued.19
(7.3) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER20
J
ANUARY 1, 2025, A TRANSFEREE OF A CREDIT TRANSFERRED PURSUANT21
TO SUBSECTION (7) OF THIS SECTION OR A SUBSEQUENT TRANSFEREE OF A22
CREDIT TRANSFERRED PURSUANT TO THIS SUBSECTION (7.3) MAY BECOME23
A SUBSEQUENT TRANSFEROR BY SUBSEQUENTLY TRANSFERRING ALL OR A24
PORTION OF A TAX CREDIT GRANTED PURSUANT TO SUBSECTION (2) OF THIS25
SECTION. THE SUBSEQUENT TRANSFEREE MAY APPLY THE TRANSFERRED26
CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE 22 AS FOLLOWS27
SB24-126
-4- AND SUBJECT TO THE FOLLOWING LIMITATIONS :1
(a) A
SUBSEQUENT TRANSFEROR MAY ONLY TRANSFER SUCH2
PORTION OF THE TAX CREDIT AS THE SUBSEQUENT TRANSFEROR HAS3
NEITHER APPLIED AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE4
22;5
(b) A
SUBSEQUENT TRANSFEROR MAY TRANSFER A PRO -RATED6
PORTION OF THE TAX CREDIT TO MORE THAN ONE SUBSEQUENT7
TRANSFEREE;8
(c) A
SUBSEQUENT TRANSFEREE MAY NOT ELECT TO HAVE ANY9
TRANSFERRED CREDIT REFUNDED PURSUANT TO SUBSECTION (5)(b) OF10
THIS SECTION;11
(d) T
O THE EXTENT THAT A SUBSEQUENT TRANSFEREE PAID VALUE12
TO A SUBSEQUENT TRANSFEROR FOR THE TRANSFER OF A CONSERVATION13
EASEMENT TAX CREDIT, THE SUBSEQUENT TRANSFEREE IS DEEMED TO14
HAVE USED THE CREDIT TO PAY, IN WHOLE OR IN PART, THE INCOME TAX15
OBLIGATION IMPOSED ON THE SUBSEQUENT TRANSFEREE UNDER THIS16
ARTICLE 22, AND TO SUCH EXTENT THE SUBSEQUENT TRANSFEREE 'S USE OF17
A TAX CREDIT FROM A TRANSFEROR UNDER THIS SECTION TO PAY TAXES18
OWED IS NOT A REDUCTION IN THE AMOUNT OF INCOME TAXES IMPOSED BY19
THIS ARTICLE 22 ON THE SUBSEQUENT TRANSFEREE ;20
(e) A
SUBSEQUENT TRANSFEROR AND SUBSEQUENT TRANSFEREE21
SHALL JOINTLY FILE A COPY OF THE WRITTEN NOTICE OF TRANSFER WITH22
THE DIVISION OF CONSERVATION WITHIN THIRTY DAYS OF THE TRANSFER23
PURSUANT TO SUBSECTION (3.5)(b)(II) OF THIS SECTION;24
(f) A
SUBSEQUENT TRANSFEREE OF A TAX CREDIT SHALL PURCHASE25
THE CREDIT PRIOR TO THE DUE DATE IMPOSED BY THIS ARTICLE 22,26
INCLUDING ANY EXTENSIONS, FOR FILING THE SUBSEQUENT TRANSFEREE'S27
SB24-126
-5- INCOME TAX RETURN; AND1
(g) A
TAX CREDIT HELD BY A SUBSEQUENT TRANSFEREE WHO IS AN2
INDIVIDUAL DOES NOT SURVIVE THE DEATH OF THE INDIVIDUAL , AND MAY3
NOT BE CLAIMED OR TRANSFERRED BY THE INDIVIDUAL 'S ESTATE UNLESS4
USED BY THE INDIVIDUAL'S ESTATE FOR TAXES OWED BY THE ESTATE ,5
EXCEPT THAT THE INDIVIDUAL'S SURVIVING SPOUSE MAY CLAIM THE TAX6
CREDIT TO THE EXTENT IT HAS NOT BEEN APPLIED TO TAXES OWED BY THE7
INDIVIDUAL'S ESTATE. THIS SUBSECTION (7.3)(g) APPLIES TO ANY TAX8
CREDIT FROM A DONATION OF A CONSERVATION EASEMENT MADE ON OR9
AFTER JANUARY 1, 2025.10
(12) A
NY TRANSFEREE WHO IS SUBJECT TO THE TAX ON INSURANCE11
PREMIUMS ESTABLISHED BY SECTIONS 10-3-209, 10-5-111, AND 10-6-128,12
AND WHO IS THEREFORE EXEMPT FROM THE PAYMENT OF INCOME TAX AND13
WHO IS OTHERWISE ELIGIBLE TO CLAIM A TAX CREDIT PURSUANT TO THIS14
SECTION MAY CLAIM THE TAX CREDIT AND CARRY THE TAX CREDIT15
FORWARD AGAINST THE INSURANCE PREMIUM TAX ON ITS CALENDAR16
QUARTER ESTIMATED TAX PAYMENTS MADE IN ACCORDANCE WITH17
SECTION 10-3-209 TO THE SAME EXTENT AS THE TRANSFEREE WOULD18
HAVE BEEN ABLE TO CLAIM OR CARRY FORWARD THE TAX CREDIT AGAINST19
INCOME TAX. ALL OTHER PROVISIONS OF THIS SECTION WITH RESPECT TO20
THE TAX CREDIT, INCLUDING THE AMOUNT AND ALLOCATION OF THE TAX21
CREDIT AND THE YEARS FOR WHICH THE TAX CREDIT MAY BE CLAIMED22
SHALL APPLY TO A TAX CREDIT CLAIMED PURSUANT TO THIS SECTION .23
SECTION 5. Act subject to petition - effective date. This act24
takes effect at 12:01 a.m. on the day following the expiration of the25
ninety-day period after final adjournment of the general assembly; except26
that, if a referendum petition is filed pursuant to section 1 (3) of article V27
SB24-126
-6- of the state constitution against this act or an item, section, or part of this1
act within such period, then the act, item, section, or part will not take2
effect unless approved by the people at the general election to be held in3
November 2024 and, in such case, will take effect on the date of the4
official declaration of the vote thereon by the governor.5
SB24-126
-7-