What Do I Do With My Conservation Easement Tax Credits?


Now that you’ve received your tax credit certificate, you must decide what to do with your credits. You have several choices:

  1. Use it to pay your Colorado income tax. Any credit unused may be carried forward for 20 years to offset future Colorado income taxes. You get a dollar for dollar benefit with this option.
  2. Transfer/sell your credits to another taxpayer. You will realize approximately 85% of the face value of the credits transferred.
  3. Refunds from the state of up to $50,000. This option is contingent upon the state controller certifying that state revenues are above certain thresholds. That was the case in 2015, but historically has been fairly rare.

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