IMPORTANT UPDATE

HOUSE BILL 10-119
7 and HOUSE BILL 11-1300
A three-year conservation tax credit cap became effective on January 1, 2011, in accordance with state statues and HB 10-1197. This cap will remain in place until December 31, 2013. House Bill 11-1300, signed into law in May 2011, changes the allocation of the three-year tax credit cap.  This means only $22 million in conservation tax credits will be issued by the Division of Real Estate (DRE) for year 2011; $22 million for year 2012 and $34 million for 2013, for an aggregate total of $78 million for years 2011 through 2013. The individual maximum credit has not changed and is still set at $375,000.

Click here to view House Bill 10-1197
Click here to view House Bill 11-1300

Please feel free to contact us with any questions you may have regarding H.B. 10-1197 or H.B. 11-1300


TAX CREDIT APPLICATION

The Colorado Division of Real Estate (DRE) administers the tax credit cap program. Landowners are required to apply through the DRE for a tax credit certificate in order to be granted a tax credit during the cap years. This is accomplished by submitting a completed tax credit application [click here], a $305 application fee, a recorded copy of the deed of conservation easement and a copy of the appraiser’s affidavit
(to be completed by the appraiser) to the DRE.

FEE PAYMENT - CTCT will pay the $305 tax credit application fee for landowners as part of our service.

COMPLETING THE TAX CREDIT APPLICATION
CTCT will assist landowners in completing, reviewing and tracking their tax credit application packets.
DRE encourages donors working with a tax credit broker to list the broker as either the main or additional contact on the application form.

Please click here to download a copy of the Tax Credit Application

RECEIVING A TAX CREDIT CERTIFICATE
A tax credit submitted for certification will be issued a tax credit certificate only after DRE determines all the required paperwork is in order. Any error in the application or omission of the required documents requires a re-submittal of the application, which consequently delays the issuance of a tax credit certificate.

The certificates are issued on a first-come, first-served basis. They can only be issued in the order in which they are received until the aggregate cap of $78 million is reached. It is possible that a tax credit certificate issued in 2012 might not be able to be used until 2013 depending upon how many certificates are granted in 2012 and the landowner’s position on the DRE list.

EARLY REGISTRATION IS VERY IMPORTANT
Sellers are encouraged to complete the CTCT Seller Registration Form [click here] so they can register their tax credit with us. We encourage sellers to register early, even if they are just beginning the easement donation process so we can help them to complete their tax credit application for submittal to DRE.

DRE posts the dollar amount of credit that has received a tax credit certificate on their website. This is updated on a bi-weekly basis. Once the $22 million cap has been met, DRE will begin granting tax certificates for the next $22 million to be used in 2012 and the last $34 million to be used in 2013. This information can be accessed by clicking the following link: http://www.dora.state.co.us/real-estate/conservation/taxcredit.htm

 

 




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