View from Wildcat Ridge Conservation Easement donated in 2003 by the Aspen Skiing Company in Snowmass, Colorado.
• Colorado taxpayers are eligible for income tax credits for the donation of a qualified conservation easement.
• The maximum tax credit allowed per year is $375,000 (calculated at 50% of the easement donation value. An easement must be worth $750,000 or more to qualify for the maximum credit).
• Conservation tax credits are transferable to other Colorado taxpayers, and may be sold for cash.
• Tax credit brokers (including AVLT) will broker the sale of tax credits from its easement donors to interested buyers at a discount.
Credits may be sold until April 15 of the year following donation and for use against the previous tax year; however, credits that are not sold by this deadline will not expire for 19 years, and may still be sold or used in future years. A tax credit seller may sell any portion of their credit through this program (provided it is at least $20,000), though AVLT cannot guarantee that we will be able to match tax credit sellers with a buyer. For this reason, interested sellers are encouraged to contact other credit brokers. Click here for a list of brokers and pertinent questions to ask when choosing a tax credit broker.
Be aware that the sale of a tax credit generates taxable income. In addition, you cannot claim additional conservation tax credits for a new easement donation until ALL of your existing credits have been used or forfeited - either personally or by the transferee of your credits.
Businesses or individuals wishing to purchase Colorado state income tax credits should contact AVLT as soon as possible to register. Buyers may purchase credits valued at $20,000 or more, often at a discounted rate. Tax credits purchases must be completed no later than April 15 in order to apply the credit to the previous year's income taxes.
The purchase of conservation tax credits can be a great public relations tool for conservation-minded Colorado corporations!
Questions about this program can be addressed to Martha Cochran at 970/963.8440.