Purchasing tax credits through Aspen Valley Land Trust can save corporations and individual taxpayers money on their state taxes. This State of Colorado Program promotes land conservation by providing a marketplace for conservation landowners who have donated a conservation easement and want to convert their tax credits into cash. This is a win-win for landowners and the businesses who support them by converting their tax liability into conservation impact.
HOW IT WORKS It’s simple. Landowners who have donated a qualified conservation easement can sell credits to other Colorado taxpayers at a discount. The buyer can use the credit against their Colorado tax liability. Credits earned by donors of a conservation easement to Aspen Valley Land Trust can be purchased at a discount of 8%-10% of their total Colorado tax bill. For instance, a taxpayer with $200,000 Colorado tax liability could save $16,000-$20,000 on their taxes. Buyers can apply the full face value of the credit toward their Colorado state income tax liability, and claim that amount as a Colorado state income tax deduction on their federal tax return.
ASPEN VALLEY LAND TRUST'S ROLE For more than fifty years, Aspen Valley Land Trust has worked with landowners to conserve important wildlife habitat, farm and ranchlands, recreational areas, and water resources in the Roaring Fork and middle Colorado River valleys. These landowners are often families with limited income whose tax liability is not large enough to use all of their credits.
Corporations or individuals with a significant state tax liability can support land conservation and their local land trust while saving money on taxes, incentivizing more quality conservation in our community.
"This program provided us the opportunity to be true custodians of the ranch and help protect all the living things that rely on this special place.”
- WENDY MCNULTY, CONSERVATION LANDOWNER
IS THIS A SAFE INVESTMENT? Yes. Colorado’s legislature moved the tax credit program from the Department of Revenue to the Division of Conservation and created a pre-approval process for issuing tax credits. This process includes a thorough review of the entire transaction, including appraisals, before a tax credit certificate is issued. This oversight makes for a safe investment and minimizes the risk of audit by the Department of Revenue.
TIMING Tax credits must be purchased by the date of the buyer’s tax credit filing (before October 15) in order to apply credits to the buyer’s Colorado tax liability for the previous tax year. Credits may be carried forward and used for up to 20 years but may not be transferred a second time or refunded by the seller.
Please note that this information is provided as a general description only. If you are interested in purchasing Colorado conservation tax credits, please contact AVLT and consult with your legal and tax advisors.
Aspen Valley Land Trust is dedicated to protecting land forever in the Roaring Fork and Colorado River valleys. For 55 years, AVLT has been a trusted community-supported conservation partner helping to ensure the natural and community health of our region.