Date: 03/09/2006

Final
BILL SUMMARY for HB06-1354

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Bill 06-1354 to the Committee of the WPASS


10:48 AM -- House Bill 06-1354 - Concerning Conservation Easements

Representative Madden, prime sponsor, explained that House Bill 06-1354 amends the existing income tax credit for conservation easement donations to 50 percent of the value of the donated easement, with a maximum amount, or cap, of $375,000 for the credit. This cap on the tax credit takes effect with a donation of $750,000. Thus, a donation above $750,000 receives the maximum $375,000 tax credit. The change applies to donations made on January 1, 2007, and later.

Representative Madden continued by explaining that the provisions in the bill are revenue neutral and do not expand the credit but change the method under which the credit can be claimed. The committee briefly discussed the initial estimated cost of the income tax credit as compared to the actual amount of credits claimed.

The following persons testified:

10:51 AM -- Mr. Larry Kueter, Isaacson Rosenbaum, P.C., and counsel to the Colorado Coalition of Land Trusts, testified in support of the legislation. Mr. Kueter commented that he supported a revenue neutral change and methodology for claiming the credit that may be more aligned with the federal tax code. The Internal Revenue Service is looking at whether a dollar-for-dollar credit is a charitable donation for purposes of the exemption. Mr. Kueter closed by saying that he is concerned that current state law may not be consistent with federal tax law as applied by the recent IRS rulings on gross conservation easement credits.

11:00 AM -- Mr. Will Shafroth, Colorado Conservation Trust, commented that House Bill 06-1354 is a tool for economic development and testified in support of the legislation.

11:03 AM -- Mr. Steve Acquafresca, Mesa Land Trust, testified in support of the legislation. Mr. Acquafresca said that the change in the method for which the credit can be taken will provide less of an incentive to "fragment" land parcels to maximize the amount of the credit taken. Mr. Acquafresca closed by saying that this bill will result in all landowners being treated more fairly whether they own large or small parcels of land that are converted to conservation easements.

11:06 AM -- Ms. Lynne Sherrod, Colorado Cattlemen's Agricultural Land Trust, testified in support of the legislation. Ms. Sherrod commented that the tax credit has added a significant amount of open space to Colorado that everyone can enjoy.

11:11 AM -- Mr. Jay Winner, Lower Arkansas Valley Water Conservancy District, testified in support of the legislation.
BILL:HB06-1354
TIME: 11:16:13 AM
MOVED:McCluskey
MOTION:Refer House Bill 06-1354 to the Committee of the Whole. The motion passed on a 11-1-1 vote.
SECONDED:Massey
VOTE
Benefield
Yes
Cloer
No
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Excused
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS