First Regular Session
              Sixty-ninth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 13-0599.01 Gregg Fraser x4325   SENATE BILL 13-130
                   SENATE SPONSORSHIP
 Marble,  Crowder, Lundberg
 
                    HOUSE SPONSORSHIP
 Saine, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senate Committees
 House Committees
 
 
 Finance
 
 
 
 Agriculture, Natural Resources, & Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning the term of a conservation easement for which
            a state income tax credit is claimed.
       
       
                           Bill Summary
       
            (Note: This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            Taxpayers are allowed to claim a state income tax credit for a
       portion of the value of a conservation easement that the taxpayer donates.
       The law currently requires the easement to be perpetual.
            The bill allows future donations to have terms of not less than 25
       years. The easement would otherwise have to comply with all federal and
       state requirements for conservation easements. The valuation of the
       easement for purposes of calculating the tax credit would have to take
       into account the fact that the easement is not perpetual.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, 39-22-522, amend
       (2); and add (12) as follows:
            39-22-522.  Credit against tax - conservation easements.
       (2)  For income tax years commencing on or after January 1, 2000, 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,
       subject to the provisions of subsections (4), and (6), and (12) 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, C.R.S., upon real property the
       taxpayer owns to a governmental entity or a charitable organization
       described in section 38-30.5-104 (2), C.R.S. 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 of the credit shall not include
       the value of any portion of an easement on real property located in
       another state.
            (12) (a)  Notwithstanding any other provision of this
       section to the contrary, for income tax years commencing on or
       after January 1, 2014, a taxpayer may claim a credit for the
       donation of a conservation easement that is not perpetual so
       long as the term stated in the instrument creating the easement
       specifies that it expires after a term of not less than twenty-five
       years.
            (b)  Except for the term allowed in paragraph (a) of this
       subsecton (12), the easement must in all other respects comply
       with the requirements of this section, section 170 of the internal
       revenue code, as amended, and any federal regulations
       promulgated in connection with such section. A credit must be
       allowed pursuant to this subsection (12) even if the taxpayer
       does not claim or is not eligible for a federal income tax credit
       for the donation. The appraised value of the easement must
       reflect the fact that it is not a perpetual easement. Nothing in
       this section shall be construed to affect the status or
       treatment of a perpetual conservation easement or any claim
       for a tax credit for the donation of a perpetual conservation
       easement pursuant to this section.
            SECTION 2.  Act subject to petition - effective date. This act
       takes effect at 12:01 a.m. on the day following the expiration of the
       ninety-day period after final adjournment of the general assembly (August
       7, 2013, if adjournment sine die is on May 8, 2013); except that, if a
       referendum petition is filed pursuant to section 1 (3) of article V of the
       state constitution against this act or an item, section, or part of this act
       within such period, then the act, item, section, or part will not take effect
       unless approved by the people at the general election to be held in
       November 2014 and, in such case, will take effect on the date of the
       official declaration of the vote thereon by the governor.