CO HB1120

Allows a perpetual conservation easement in gross to be released, terminated, or extinguished if determined invalid or ineligible for state income tax credit purposes by the Department of Revenue, court, or voluntary settlement agreement.

Permits elimination of a conservation easement if the tax credit amount originally claimed was disputed by the Department of Revenue and subsequently reduced.

Requires the donor to repay any taxes, interest, and penalties owed to the state resulting from denial or reduction of the tax credit claim.

For reduced credits, requires the donor to repay a proportional amount of any consideration originally paid by the grantee for the easement, calculated as the same percentage that the credit was reduced.

Takes effect August 7, 2013, and applies to conservation easements granted before, on, or after the effective date, subject to referendum petition provisions.