HOW DO I PURCHASE A CREDIT?

Individual Colorado taxpayers, who are residents in the state for at least six months, and corporations can enroll their intent to purchase a Credit with CTCT by completing the attached Buyer Enrollment Form and returning it to us as soon as possible.

It is advisable to enroll early and indicate your intent to purchase a Credit through our firm. You will be placed on our priority Credit purchase list when your enrollment form is received.

HOW DO I BENEFIT FROM BUYING A CREDIT?

Individuals and corporations using our firm to purchase a Credit will receive a discount on the face value of the Credit purchased based on the "going market rate," which tends to provide about a fifteen percent (15%) discount. The discount rate can change over the course of the "transfer year" (January 1st through April 15th of the following year) based on the supply of Credits and the demand to purchase Credits. We transfer Credits throughout the "transfer year." Please check with us about the current discount rate.

Buyers of a Credit can apply the full face value of the Credit (not the purchase price) toward their Colorado state income tax liability and claim that amount as a Colorado state income tax deduction on their federal tax return.

Buyers encourage and support land conservation by providing a marketplace for landowners who have donated a conservation easement and now want to sell their Credit. Buyers help to conserve land in our beautiful state by purchasing Credits.

WHAT IS CTCT'S ROLE IN THE CREDIT TRANSFER PROCESS?

CTCT does not represent either the seller or the buyer of the Credit. Rather, we match the seller and buyer and facilitate the transfer and sale through the use of our Agreement to Purchase/Sell. This agreement defines the specific conservation easement donation; the amount of Credit being transferred; how funds are allocated among the landowner, the buyer of the Credit and the facilitator; and specific warrants and agreements for the seller, the buyer and the facilitator.

The seller, buyer and facilitator all review, sign and date the Agreement to Purchase/Sell. When all of the documents and agreements are completed and the buyer has forwarded appropriate checks to CTCT the seller receives the buyer's check through our firm.

HOW IS THE TRANSFERRED CREDIT REPORTED?

Part of CTCT'S service is to provide the seller and the buyer of the Credit with all required Internal Revenue Service and Colorado Department of Revenue forms and documents before the tax filing due date. Both the seller and buyer must file their income tax returns in a timely manner with the conservation documents provided by CTCT attached.