CO SB119

Creates a new state income tax credit for taxpayers whose conservation easement donations made between January 1, 2000, and December 31, 2013, were previously denied if the IRS allowed a federal income tax deduction for the same donation.

Eligible donations must involve land owned by the landowner, family member, or controlled trust/entity for at least 3 consecutive years prior to donation, with credit amount capped at 250% of the donor's cost basis.

Requires taxpayers to submit claims to the Division of Conservation by September 30, 2023, with supporting documentation including federal tax Form 8283 and proof of IRS acceptance.

Credits are non-refundable but may be carried forward or transferred like the original credits, and are reduced by any amounts already claimed or reimbursed.

Establishes an ombudsman process through the Division of Conservation to resolve disputes between original donors and transferees regarding credit distribution, with unresolved disputes subject to binding arbitration at Department of Revenue expense.