Colorado lawmakers appear poised to overwhelmingly approve House Bill 26-1230, legislation extending the state’s conservation easement tax credit program through income tax year 2036. Farming and ranching families often utilize conservation easements to meet financial or estate obligations. In some cases, the option of a conservation easement has made a difference for agricultural producers. Colorado has conserved more than 3.5 million acres of working farms, ranches, wildlife habitat, and open space over the past six decades.

Extension of the Conservation Tax Credit Offers Greater Confidence and Does Not Expand State Authority

Participation in Colorado’s conservation easement program is voluntary. Under current law, taxpayers may claim the conservation easement tax credit through tax year 2031. HB26-1230 extends that availability through tax year 2036.

Real estate, agriculture, estate planning, and conservation projects often operate on timelines measured in years rather than months. HB26-1230 also continues the annual tax credit allocation authority of up to $50 million through 2036. That long-term certainty matters for landowners, conservation organizations, and lenders.

Importantly, HB26-1230 does not create new mandates, new restrictions, or new state authority over private landowners. Instead, it simply extends an existing incentive-based framework across Colorado.