HB 1230

HOUSE BILL 26-1230
BY REPRESENTATIVE(S) Martinez and Velasco, Bacon, Caldwell,
Camacho, Duran, Garcia, Gonzalez R., Hartsook, Lukens, Mabrey, Mauro,
McCormick, Nguyen, Richardson, Soper, Stewart K., Stewart R., Taggart,
Titone, Woodrow, Zokaie, Barron, Boesenecker, Brown, Carter, Clifford,
English, Flanell, Froelich, Hamrick, Johnson, Joseph, Lieder, Lindsay,
Phillips, Ricks, Rydin, Sirota, Slaugh, Smith, Story, Weinberg, Woog,
McCluskie;
also SENATOR(S) Roberts and Kirkmeyer, Amabile, Baisley, Bridges,
Bright, Carson, Catlin, Frizell, Kolker, Lindstedt, Liston, Marchman,
Mullica, Pelton R., Rich, Simpson, Snyder, Wallace, Zamora Wilson,
Cutter, Daugherty, Exum, Jodeh, Kipp, Pelton B.
CONCERNING THE EXTENSION OF THE CONSERVATION EASEMENT TAX
         CREDIT THROUGH INCOME TAX YEAR 2036.
Be it enacted by the General Assembly of the State of Colorado:
        SECTION 1. In Colorado Revised Statutes, 39-22-522, amend (2),
(2.5), and (15); and add (14.3) and (14.5) as follows:
       39-22-522. Credit against tax - conservation easements -
definitions - tax preference performance statement - repeal.
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.
        (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 JANUARY 1, 2037,
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 upon real property the taxpayer owns to a
governmental entity or a charitable organization described in section
38-30.5-104 (2). 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 ofthe
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 JANUARY 1, 2037, 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
JANUARY 1,2037, 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 upon real property the taxpayer owns to
a governmental entity or a charitable organization described in section
38-30.5-104 (2). 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
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department of regulatory agencies. 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, forty-five million dollars for each
of the 2014 to 2024 calendar years, and fifty million dollars for each of the
2025 to W3-t 2036 calendar years, any claims that exceed the amount
allowed for a specified calendar year shall be issued for use in the next year
for which the division has not issued credit certificates in excess of the
amounts specified in this subsection (2.5). 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,
forty-five million dollars for each of the 2014 to 2024 calendar years, and
fifty million dollars for each of the 2025 through W3-t 2036 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 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.
       (14.3) THE DIVISION OF CONSERVATION SHALL NOT ISSUE ANY
ADDITIONAL CREDIT CERTIFICATES OR AMEND ANY PREVIOUSLY ISSUED
CREDIT CERTIFICATES AS A RESULT OF THE ADDITIONAL AUTHORITY
GRANTED BY HOUSE BILL 26-1230 FOR A DONATION MADE PRIOR TO THE
EFFECTIVE DATE OF HOUSE BILL 26-1230. THIS SUBSECTION ( 14.3) DOES NOT
LIMIT THE AUTHORITY OF THE DIVISION OF CONSERVATION TO ISSUE ATAX
CREDITCERTIFICATEAGAINSTTHELIMITSSETFORTHINSUBSECTION(2.5)OF
THIS SECTION FOR A CALENDAR YEAR PRIOR TO 2032 WITH RESPECT TO A
DONATION MADE PRIOR TO THE EFFECTIVE DATE OF HB26-1230.
        (14.5) (a) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES
THAT:
PAGE 3-HOUSE BILL 26-1230
      (I)    OVER THE LAST SIXTY YEARS, COLORADO FAMILIES HA VE
CONSERVED OVER THREE MILLION FIVE HUNDRED THOUSAND ACRES OF
WORKING FARMS, RANCHES, AND PRIVATE LANDS ACROSS THE STATE;
      (II)    SINCE 2000, COLORADO HAS PROACTIVELY INVESTED IN
CONSERVATION THROUGH THE CONSERVATION EASEMENT TAX CREDIT
PROGRAM;
      (III)  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;
      (IV)      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 ;
      (V) 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;
      (VI)    IN PURSUIT OF GREATER EQUITY IN CONSERVATION, IT IS
CRUCIAL TO ENHANCE PROGRAMS THAT PROMOTE PUBLIC BENEFITS FOR ALL
COLORADANS;
      (VII)       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; AND
      (VIII) IT IS IN THE BEST INTERESTS OF COLORADANS TO ENHANCE
THE CONSERVATION EASEMENT TAX CREDIT PROGRAM.
      (b) (I)   IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH
REQUIRES EACH BILL THAT EXTENDS AN EXPIRING TAX EXPENDITURE TO
INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT, THE GENERAL
PAGE 4-HOUSE BILL 26-1230
ASSEMBLY FURTHER FINDS AND DECLARES THAT THE GENERAL PURPOSE OF
THE EXTENSION OF THE EXPIRING TAX CREDIT PROVIDED FOR IN SUBSECTIONS
(2) AND (2.5) OF THIS SECTION IS TO INDUCE CERTAIN BEHAVIOR BY
TAXPAYERS. SPECIFICALLY, THIS EXTENSION OF AN EXPIRING TAX
EXPENDITURE IS INTENDED TO INDUCE PRIVATE LANDOWNERS TO
VOLUNTARILY PROTECT THEIR PROPERTIES THROUGH CONSERVATION
EASEMENTS.
        (II)THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
MEASURE THE EFFECTIVENESS OF THE TAX CREDITS IN ACHIEVING THE
PURPOSES SPECIFIED IN SUBSECTION ( 14.5)(b)(I) OF THIS SECTION BASED ON
THE NUMBER AND VALUE OF THE CREDITS CLAIMED AND THE TOTAL AMOUNT
OF PROPERTY PROTECTED BY CONSERVATION EASEMENTS.
        (15) This section is repealed, effective January 1, 2052 JANUARY I,
2057.
      SECTION 2.        Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
PAGE 5-HOUSE BILL 26-1230
preservation of the public peace, health, or safety or for appropriations for
the support and maintenance of the departments of the state and state
institutions.
                                                ames Rashad Coleman, Sr.
SPEAKER OF THE HOUSE  PRESIDENT OF
OF REPRESENTATIVES  THE SENATE
v~~
Vanessa Reilly  Esther van Mourik
CHIEF CLERK OF THE HOUSE  SECRETARY OF
OF REPRESENTATIVES  THE SENATE
       APPROVED on YY\oV\ ~O'v\ Q"\,ht-- \.~-\ '2.o2.A.; Pvt  \2: Oo~
                           (Date and Time)
                                                                L
                  Jared S. P
                  GOVE
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