SENATE BILL 24-126
BY SENATOR(S) Will and Winter F., Pelton R., Roberts, Bridges, Cutter,
Fields, Gardner, Hansen, Kirkmeyer, Kolker, Liston, Lundeen, Marchman,
Priola, Rodriguez, Smallwood, Zenzinger, Fenberg;
also REPRESENTATIVE(S) Lukens and Lynch, Armagost, Hartsook,
Martinez, Velasco, Amabile, Bird, Boesenecker, Brown, Daugherty, Duran,
English, Hamrick, Jodeh, Joseph, Lieder, Lindstedt, Marvin, Mauro,
McCormick, McLachlan, Ricks, Snyder, Soper, Story, Taggart, Weinberg,
Young, McCluskie.
C
ONCERNING THE CONSERVATION EASEMENT INCOME TAX CREDIT , AND, IN
CONNECTION THEREWITH
, EXTENDING THE CONSERVATION EASEMENT
OVERSIGHT COMMISSION AND THE CERTIFIED HOLDER PROGRAM
INDEFINITELY
, INCREASING THE LIMIT ON CONSERVATION EASEMENT
INCOME TAX CREDITS AVAILABLE TO DONORS IN ONE CALENDAR
YEAR
, ALLOWING MULTIPLE TRANSFERS OF CONSERVATION
EASEMENT INCOME TAX CREDITS
, AND MAKING AN APPROPRIATION .
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
hereby finds and declares that:
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (a) Over the last sixty years, Colorado families have conserved over
three million three hundred thousand acres of working farms, ranches, and
private lands across the state;
(b) Since 2000, Colorado has proactively invested in conservation
through the conservation easement tax credit program;
(c) The conservation easement tax credit program incentivizes
private landowners to voluntarily protect their properties, which creates
public benefits to Colorado's lands, waters, wildlife, and people.
(d) The benefits of conservation are unique and wide-ranging.
Conservation has contributed significantly to the protection of wildlife
habitat, critical wetlands, urban open space, and working farms and ranches.
(e) The conservation easement tax credit program has aided
Colorado in reducing its carbon emissions and accomplishing its
biodiversity goals, while supporting rural economic resiliency, benefiting
all Coloradans;
(f) In pursuit of greater equity in conservation, it is crucial to
enhance programs that promote public benefits for all Coloradans; and
(g) Equity in conservation requires ongoing collaboration with
private landowners, state and federal public land managers, and counties
and municipalities. Underscoring and investing in the inclusion of
underserved communities, tribes, and historically marginalized land
interests will further amplify these efforts.
(2) Therefore, it is in the best interests of Coloradans to enhance the
conservation easement tax credit program.
SECTION 2. In Colorado Revised Statutes, 12-15-103, amend (1)
introductory portion, (1)(a), (1)(d) introductory portion, and (1)(d)(I);
repeal (8); and add (1)(d)(III) as follows:
12-15-103. Conservation easement oversight commission -
created. (1) There is created in the division a conservation easement
oversight commission, referred to in this article 15 as the "commission".
The commission is a type 2 entity, as defined in section 24-1-105, and
PAGE 2-SENATE BILL 24-126 exercises its powers and performs its duties and functions under the
division. The commission consists of eight NINE members as follows:
(a) One member representing the great outdoors Colorado program,
appointed by and serving as an advisory, nonvoting member at the pleasure
of the state board of the great outdoors Colorado trust fund established in
article XXVII of the state constitution; ONE VOTING MEMBER REPRESENTING
THE GREAT OUTDOORS
COLORADO TRUST FUND, APPOINTED BY AND SERVING
AT THE PLEASURE OF THE EXECUTIVE DIRECTOR OF THE STATE BOARD OF THE
GREAT OUTDOORS
COLORADO TRUST FUND;
(d) Three
FOUR voting members appointed by the governor as
follows:
(I) Two voting representatives of certified conservation easement
holders; and
(III) A VOTING INDIVIDUAL WHO MEETS THE DEFINITION OF
"SOCIALLY DISADVANTAGED FARMER OR RANCHER " IN 7 U.S.C. SEC. 2279.
(8) This section is repealed, effective July 1, 2026.
SECTION 3. In Colorado Revised Statutes, 12-15-104, repeal (13)
as follows:
12-15-104. Certification of conservation easement holders - rules
- definition. (13) This section is repealed, effective July 1, 2026.
SECTION 4. In Colorado Revised Statutes, 12-15-105, amend
(1)(c) and (3) as follows:
12-15-105. Conservation easement tax credit certificates - rules.
(1) The division shall receive tax credit certificate applications from and
issue certificates to landowners for income tax credits for conservation
easements donated on or after January 1, 2011, in accordance with section
39-22-522 (2.5) and this article 15. Nothing in this section restricts or limits
the authority of the division to enforce this article 15. The division may
promulgate rules in accordance with article 4 of title 24 for the issuance of
the certificates. In promulgating rules, the division may include provisions
governing:
PAGE 3-SENATE BILL 24-126 (c) The notification to the public regarding the aggregate amount of
tax credit certificates that have been issued and that are on the wait list
pursuant to section 39-25-522 (2.5);
(3) The division shall not issue tax credit certificates that in
aggregate exceed the limit set forth in section 39-22-522 (2.5) during a
particular calendar year. T
HE DIVISION MAY ISSUE MULTIPLE TAX CREDIT
CERTIFICATES FOR A SINGLE CONSERVATION EASEMENT AS REQUIRED BY
SECTION
39-22-522.
SECTION 5. In Colorado Revised Statutes, 12-15-106, amend (10)
as follows:
12-15-106. Conservation easement tax credit certificate
application process - definitions - rules. (10) If the director and the
commission do not identify any potential deficiencies with an application,
the director and the commission shall approve the application, and the
division shall issue a tax credit certificate to the landowner pursuant to
section 12-15-105 in a timely manner so that the number of days between
the date a completed application is received by the division and the date the
tax credit certificate is issued does not exceed one hundred twenty days.
Once a tax credit certificate is issued, the landowner may claim and use the
tax credit subject to any other applicable procedures and requirements under
title 39. T
HE DEADLINE PRESCRIBED BY THIS SUBSECTION (10) MAY BE
EXTENDED UPON MUTUAL AGREEMENT OF THE DIRECTOR
, THE COMMISSION,
AND THE LANDOWNER .
SECTION 6. In Colorado Revised Statutes, 38-30.5-103, add (7)
as follows:
38-30.5-103. Nature of conservation easements in gross. (7) A
CONSERVATION EASEMENT IN GROSS IS A REAL PROPERTY INTEREST AS
DEFINED IN SECTION
38-30.5-102 THAT IS TO BE CREATED, ADMINISTERED,
STEWARDED, ENFORCED, MODIFIED, AND TERMINATED PURSUANT TO THIS
ARTICLE
30.5 AND, AS APPLICABLE, SECTION 39-22-522.
SECTION 7. In Colorado Revised Statutes, 39-22-522, amend
(2)(a), (2)(b), (2.5), (4)(a)(II.7), (4)(b)(II)(D), (5)(b)(II), (5)(b)(III), and
(7.5)(a); and add (4)(a)(II.8), (4)(b)(II)(E), (13), (14), and (15) as follows:
PAGE 4-SENATE BILL 24-126 39-22-522. Credit against tax - conservation easements -
definitions. (2) (a) For income tax years commencing on or after January
1, 2000, but prior to January 1, 2014, and, with regard to any credit over the
amount of one hundred thousand dollars, for income tax years commencing
on or after January 1, 2003,
BUT BEFORE JANUARY 1, 2032, subject to the
provisions of subsections (4) and (6) of this section, there shall be allowed
a credit with respect to the income taxes imposed by this article to each
taxpayer who donates during the taxable year all or part of the value of a
perpetual conservation easement in gross created pursuant to article 30.5 of
title 38. C.R.S.
upon real property the taxpayer owns to a governmental
entity or a charitable organization described in section 38-30.5-104 (2).
C.R.S.
The credit shall only be allowed for a donation that is eligible to
qualify as a qualified conservation contribution pursuant to section 170 (h)
of the internal revenue code, as amended, and any federal regulations
promulgated in connection with such section. The amount of the credit shall
not include the value of any portion of an easement on real property located
in another state.
(b) For income tax years commencing on or after January 1, 2014,
BUT BEFORE JANUARY 1, 2032, and, with regard to any credit over the
amount of one hundred thousand dollars, for income tax years commencing
on or after January 1, 2003,
BUT BEFORE JANUARY 1, 2032, subject to the
provisions of subsections (4) and (6) of this section, there shall be allowed
a credit with respect to the income taxes imposed by this article to each
taxpayer who donates during the taxable year all or part of the value of a
perpetual conservation easement in gross created pursuant to article 30.5 of
title 38. C.R.S.
upon real property the taxpayer owns to a governmental
entity or a charitable organization described in section 38-30.5-104 (2).
C.R.S.
The credit shall only be allowed for a donation that meets the
requirements of section 170 of the federal "Internal Revenue Code of
1986", as amended, and any federal regulations promulgated in accordance
with such section. The amount of the credit shall not include the value of
any portion of an easement on real property located in another state.
(2.5) Notwithstanding any other provision of this section and the
requirements of section 12-15-106, for income tax years commencing on or
after January 1, 2011, a taxpayer conveying a conservation easement and
claiming a credit pursuant to this section shall, in addition to any other
requirements of this section and the requirements of section 12-15-106,
submit a claim for the credit to the division of conservation in the
PAGE 5-SENATE BILL 24-126 department of regulatory agencies. The division shall issue a certificate for
the claims received in the order submitted. THE DIVISION MUST PRIORITIZE
TAX CREDIT APPLICATIONS IN THE ORDER RECEIVED
. THE DIVISION MUST
ASSIGN EACH APPLICATION WITH THE DATE AND TIME RECEIVED BASED ON
THE ORDER IN WHICH A COMPLETED APPLICATION WAS SUBMITTED
PURSUANT TO SECTION
12-15-106 (5). INCOMPLETE APPLICATIONS DO NOT
GET PRIORITY IN THE REVIEW PROCESS
. DISAPPROVED APPLICATIONS LOSE
THEIR PRIORITY IN THE REVIEW PROCESS
. After certificates have been issued
for credits that exceed an aggregate of twenty-two million dollars for all
taxpayers for the 2011 and 2012 calendar years, thirty-four million dollars
for the 2013 calendar year, and
forty-five million dollars for each OF THE
2014 TO 2024 calendar year thereafter YEARS, AND FIFTY MILLION DOLLARS
FOR EACH OF THE
2025 TO 2031 CALENDAR YEARS, any claims that exceed
the amount allowed for a specified calendar year shall be placed on a waitlist in the order submitted and a certificate shall be issued for use of the
credit in the next year for which the division has not issued credit
certificates in excess of the amounts specified in this subsection (2.5).
except that no more than fifteen million dollars in claims shall be placed on
the wait list in any given calendar year. The division shall not issue credit
certificates that exceed twenty-two million dollars in each of the 2011 and
2012 calendar years, thirty-four million dollars for the 2013 calendar year,
and
forty-five million dollars for each OF THE 2014 TO 2024 calendar year
thereafter YEARS, AND FIFTY MILLION DOLLARS FOR EACH OF THE 2025
THROUGH 2031 CALENDAR YEARS. No claim for a credit is allowed for any
income tax year commencing on or after January 1, 2011, unless a
certificate has been issued by the division. If all other requirements under
section 12-15-106 and this section are met, the right to claim the credit is
vested in the taxpayer at the time a
THE credit certificate is issued. IN THE
CASE OF A TAX CREDIT CERTIFICATE ISSUED TO A TAXPAYER WHO FILES AN
INCOME TAX RETURN FOR A TAX YEAR OTHER THAN A CALENDAR YEAR
, THE
CREDIT MUST BE USED IN THE INCOME TAX YEAR THAT BEGINS DURING THE
CALENDAR YEAR FOR WHICH THE TAX CREDIT CERTIFICATE IS ISSUED
.
(4) (a) (II.7) For a conservation easement in gross created in
accordance with article 30.5 of title 38 that is donated on or after January
1, 2021, to a governmental entity or a charitable organization described in
section 38-30.5-104 (2), the credit provided for in subsection (2) of this
section is an amount equal to:
(A) F
OR CONSERVATION EASEMENTS DONATED ON OR AFTER
PAGE 6-SENATE BILL 24-126 JANUARY 1, 2021, BUT BEFORE JANUARY 1, 2027, ninety percent of the fair
market value of the donated portion of such conservation easement in gross
when created; except that in no case shall the credit exceed five million
dollars per donation; Credits shall be issued in increments of no more than
one million five hundred thousand dollars per year. Credits for easements
donated in a prior year are eligible for tax credit certificates in subsequent
years in order of application and before new applications and those credit
applications, if any, on the wait list AND
(B) FOR CONSERVATION EASEMENTS DONATED ON OR AFTER
JANUARY 1, 2027, EIGHTY PERCENT OF THE FAIR MARKET VALUE OF THE
DONATED PORTION OF SUCH CONSERVATION EASEMENT IN GROSS WHEN
CREATED
; EXCEPT THAT IN NO CASE SHALL THE CREDIT EXCEED FIVE MILLION
DOLLARS PER DONATION
.
(II.8) C
REDITS SHALL BE ISSUED IN INCREMENTS OF NO MORE THAN
ONE MILLION FIVE HUNDRED THOUSAND DOLLARS PER YEAR
. CREDITS FOR
EASEMENTS DONATED IN A PRIOR YEAR ARE ELIGIBLE FOR TAX CREDIT
CERTIFICATES IN SUBSEQUENT YEARS IN ORDER OF APPLICATION
.
(b) (II) (D) For income tax years commencing on or after January
1, 2015,
BUT BEFORE JANUARY 1, 2027, the total aggregate amount of the
credit allocated to such owners, partners, members, and shareholders shall
not exceed five million dollars, and, if any refund is claimed pursuant to
subsection (5)(b)(I) of this section, the aggregate amount of the refund and
the credit claimed by such owners, partners, members, and shareholders
shall not exceed fifty thousand dollars for that income tax year.
(E) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
1, 2027, THE TOTAL AGGREGATE AMOUNT OF THE CREDIT ALLOCATED TO
SUCH OWNERS
, PARTNERS, MEMBERS, AND SHAREHOLDERS SHALL NOT
EXCEED FIVE MILLION DOLLARS
, AND, IF ANY REFUND IS CLAIMED PURSUANT
TO SUBSECTION
(5)(b)(I) OF THIS SECTION, THE AGGREGATE AMOUNT OF THE
REFUND AND THE CREDIT CLAIMED BY SUCH OWNERS
, PARTNERS, MEMBERS,
AND SHAREHOLDERS SHALL NOT EXCEED TWO HUNDRED THOUSAND
DOLLARS FOR THAT INCOME TAX YEAR
.
(5) (b) (II) (A) B
EFORE JANUARY 1, 2027, a taxpayer may elect to
claim a refund pursuant to subparagraph (I) of this paragraph (b)
SUBSECTION (5)(b)(I) OF THIS SECTION only if, based on the financial report
PAGE 7-SENATE BILL 24-126 prepared by the controller in accordance with section 24-77-106.5, C.R.S.,
the controller certifies that the amount of state revenues for the state fiscal
year ending in the income tax year for which the refund is claimed exceeds
the limitation on state fiscal year spending imposed by section 20 (7)(a) of
article X of the state constitution and the voters statewide either have not
authorized the state to retain and spend all of the excess state revenues or
have authorized the state to retain and spend only a portion of the excess
state revenues for that fiscal year.
(B) T
HIS SUBSECTION (5)(b)(II) IS REPEALED, EFFECTIVE DECEMBER
31, 2031.
(III) If any refund is claimed pursuant to subsection (5)(b)(I) of this
section, then the aggregate amount of the refund and amount of the credit
used as an offset against income taxes, excluding amounts transferred to or
used by a transferee, for that income tax year shall not exceed fifty thousand
dollars for that income tax year
FOR INCOME TAX YEARS COMMENCING
BEFORE
JANUARY 1, 2027, AND SHALL NOT EXCEED TWO HUNDRED
THOUSAND DOLLARS FOR THAT INCOME TAX YEAR FOR INCOME TAX YEARS
COMMENCING ON OR AFTER
JANUARY 1, 2027. In the case of a partnership,
S corporation, or other similar pass-through entity that donates a
conservation easement as an entity, if any refund is claimed pursuant to
subsection (5)(b)(I) of this section, the aggregate amount of the refund and
the credit claimed by the partners, members, or shareholders of the entity
shall not exceed the dollar limitation set forth in this subsection (5)(b)(III)
for that income tax year. Nothing in this subsection (5)(b)(III) shall limit a
taxpayer's ability to claim a credit against taxes due in excess of fifty
thousand dollars
FOR TAX YEARS COMMENCING BEFORE JANUARY 1, 2027,
AND TWO HUNDRED THOUSAND DOLLARS FOR TAX YEARS COMMENCING ON
OR AFTER
JANUARY 1, 2027, in accordance with subsection (4) of this
section.
(7.5) (a) For income tax years commencing on or after January 1,
2021, in lieu of a credit with respect to the income taxes imposed by this
article 22, there is allowed a transferable expense amount to each qualified
entity that donates during the taxable year all or part of the value of a
perpetual conservation easement in gross created pursuant to article 30.5 of
title 38 upon real property the qualified entity owns to a governmental entity
or a charitable organization described in section 38-30.5-104 (2). A
transferable expense amount shall be treated in all manners as a tax credit
PAGE 8-SENATE BILL 24-126 for purposes of this section, including provisions governing the amount,
valuation, and transfer of a tax credit; except that the transferable expense
amount may only be transferred to a transferee to be claimed by the
transferee as a credit pursuant to this section. A qualified entity may transfer
a transferable expense amount to be claimed as a credit by a transferee
pursuant to this section regardless of whether the qualified entity receives
value in exchange for the transfer.
(13) A
NY TRANSFEREE WHO IS SUBJECT TO THE TAX ON INSURANCE
PREMIUMS ESTABLISHED BY SECTIONS
10-3-209, 10-5-111, AND 10-6-128,
AND WHO IS THEREFORE EXEMPT FROM THE PAYMENT OF INCOME TAX AND
WHO IS OTHERWISE ELIGIBLE TO CLAIM A TAX CREDIT PURSUANT TO THIS
SECTION MAY CLAIM THE TAX CREDIT AND CARRY THE TAX CREDIT FORWARD
AGAINST THE INSURANCE PREMIUM TAX TO THE SAME EXTENT AS THE
TRANSFEREE WOULD HAVE BEEN ABLE TO CLAIM OR CARRY FORWARD THE
TAX CREDIT AGAINST INCOME TAX
. ALL OTHER PROVISIONS OF THIS SECTION
WITH RESPECT TO THE TAX CREDIT
, INCLUDING THE AMOUNT AND
ALLOCATION OF THE TAX CREDIT AND THE YEARS FOR WHICH THE TAX
CREDIT MAY BE CLAIMED SHALL APPLY TO A TAX CREDIT CLAIMED PURSUANT
TO THIS SECTION
.
(14) F
OR ANY CONSERVATION EASEMENT GRANTED ON OR AFTER
JANUARY 1, 2025, THE CONSERVATION EASEMENT MAY INCLUDE A
PROVISION PROVIDING THAT IF TECHNOLOGICAL OR LEGAL CHANGES ALLOW
AN EXPANDED USE OF WIND AND SOLAR POWER GENERATION
, TRANSMISSION,
AND STORAGE TO BE COMPATIBLE WITH THE PROTECTION OF CONSERVATION
VALUES CONSIDERED AS A WHOLE AND PURSUANT TO SECTION
170(h) OF THE
INTERNAL REVENUE CODE AND ANY FEDERAL REGULATIONS PROMULGATED
IN CONNECTION WITH SUCH SECTION
, THEN THE HOLDER OF THE
CONSERVATION EASEMENT MAY
, IN ITS SOLE DISCRETION , APPROVE
EXPANDED WIND AND SOLAR POWER GENERATION
, TRANSMISSION, OR
STORAGE THAT IS COMPATIBLE WITH AND DOES NOT DIMINISH OR IMPAIR
CONSERVATION VALUES
.
(15) T
HIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2052.
SECTION 8. Appropriation. For the 2024-25 state fiscal year,
$12,925 is appropriated to the department of regulatory agencies for use by
the division of conservation. This appropriation is from the conservation
cash fund created in section 12-15-107, C.R.S., and is based on an
PAGE 9-SENATE BILL 24-126 assumption that the division will require an additional 0.2 FTE. To
implement this act, the division may use this appropriation for conservation
easement program costs.
SECTION 9. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 10-SENATE BILL 24-126 November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Steve Fenberg Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 11-SENATE BILL 24-126