Frequently Asked Questions
Hawks Haven, LLC and Allison Elliot properties have been preserved by a
conservation easement donated to the Black Canyon Land Trust. The Property is
located just outside the town of Paonia.
FREQUENTLY ASKED QUESTIONS FOR BUYERS
What are the benefits of buying a credit?
Buyers can save thousands of dollars by purchasing conservation easement tax credits. For example, if a buyer buys $100,000 in tax credits at the 85% rate, the Buyer will pay $85,000 and save $15,000. Buyers will also encourage land conservation by providing a market for farmers and ranchers and other landowners to sell their credits.
Who can purchase a credit?
Colorado residents, C corporations, trusts, estates, and members of pass through entities who receive the credit from such entities, regardless of whether such members are Colorado residents. Special rules apply to single member pass through entities.
What are conservation easements?
Conservation easements are agreements between landowners and a qualifying organization that restrict development of real
property. These documents vary and are unique for each landowner. They are used to preserve land in perpetuity and they are designed specifically to protect the conservation values of a property,
such as wildlife habitat, agricultural lands, outdoor recreation
areas for the public, scenic vistas or historic lands or structures.
What are conservation easement tax credits?
Donors of conservation easements are eligible for conservation easement tax
credits under Colorado law. These are credits that may be used against Colorado state
income taxes owed. Conservation easement tax credits may be used by the donor
over a 20 year period, transferred to other Colorado taxpayers, or, in years
of budget surplus, refunded by the State to the donor.
What is the smallest tax credit I can buy or sell?
Tax Credit Connection, Inc. will assist with transfers of credits in minimum values of $10,000.
Is there a limit on the amount of credits that can be purchased in a tax year?
No. Purchasers may purchase as many credits as they wish so long as they have not donated an easement that has remaining unused credits. Some Sellers require that the buyer of their credits use all of the credits for the tax year in which they purchased them. In that case, a buyer would want to be sure not to buy more credits than can be used against that year’s taxes. Otherwise, the credits can be carried forward to future years. Please contact us for more information on this issue.
When can I buy a credit?
You can buy credits at any time up to April 15 to be used against the previous years's taxes. For example, credits to offset 2008 taxes have to be purchased by April 15, 2009. Tax Credit Connection, Inc. gives incentives to buyers who choose to buy their credits early. Please see our Registration Form for our complete price list.
How do I register?
Simply download the appropriate forms from our Registration page, fill them out and return to Tax Credit Connection, Inc.
For more information see our Articles page.
Ariel Steele
Tax Credit Connection, Inc.
P.O. Box 6618 Longmont, CO 80501
303-774-8127 (phone) 303-682-3275 (fax)
ariel@taxcreditconnection.com
The information provided in this website is for general
purposes only. Tax Credit Connection, Inc. does not provide legal advice. Interested
buyers and sellers should consult their own legal and tax or financial counsel
for information on their specific circumstances and advice on the legal consequences
of buying or selling a Colorado conservation easement income tax credit. Although Tax
Credit Connection, Inc. has used best efforts to ensure that the information
provided on this site is accurate and reliable, we do not guarantee that it
is fully correct or complete in every respect.
© 2006 Tax Credit Connection
