Frequently Asked Questions
What are the benefits of buying a credit?
Buyers can save thousands of dollars by purchasing conservation easement tax credits. For example, if a buyer purchases $100,000 in tax credits at the 88% rate, the Buyer will pay $88,000 and save $12,000. Buyers will also encourage land conservation by providing a market for farmers and ranchers and other landowners to sell their credits.
Who can purchase a credit?
Colorado residents, C corporations, trusts, and estates. Pass through entities such as LLC’s, partnerships and S corporations must buy the credits on the individual level, not on the partnership level.
What are conservation easements?
Conservation easements are agreements between landowners and a qualifying organization that restrict development of the land. These documents vary and are unique for each property. They are used to preserve land forever and they are designed specifically to protect the conservation values of a property, such as:
- wildlife habitat
- agricultural lands
- outdoor recreation areas for the public
- scenic vistas
- historic lands or structures
What are conservation easement tax credits?
Donors of conservation easements are eligible for up to $5M in conservation easement tax credits under Colorado law depending on the value of their land. These credits may be used against Colorado state income taxes owed. Conservation easement tax credits may be used by the donor over a 20 year period, sold to other Colorado taxpayers, or, in years of budget surplus, partially refunded by the State to the donor.
What is the smallest tax credit I can buy or sell?
Tax Credit Connection, Inc. will assist with transfers of credits in minimum values of $10,000.
Is there a limit on the amount of credits that can be purchased in a tax year?
No. Buyers may purchase as many credits as they wish so long as they have not donated an easement that has remaining unused credits. Some Sellers require the buyer of their credits to use all of the credits for the tax year in which they purchased them. In that case, a buyer would want to be sure not to buy more credits than can be used against that year’s taxes. Otherwise, the credits can be carried forward to future years. Please contact us for more information on this issue.
When can I buy a credit?
You can buy credits at any time up to April 15th to be used against the previous year taxes. For example, credits to offset 2019 taxes have to be purchased by April 15, 2020. Tax Credit Connection, Inc. gives incentives to buyers who choose to buy their credits early. Please see our Registration Form for our complete price list.
How do I register?
Simply download the appropriate forms from our registration page, fill them out and return to Tax Credit Connection, Inc. or give us a call and we’ll take care of everything over the phone for you.