On Wednesday, July 8, 2022, Governor Polis signed SB22-208 into law. As discussed in a prior blog post, the new law provides that if property encumbered by a conservation easement will be condemned, and the property will be acquired free and clear of the conservation easement interest, the condemning authority must value the property as
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Colorado Legislature Passes Bill for Valuation of Conservation Easement Properties in Condemnation Actions
By Melinda Beck
On May 10, 2022, the Colorado Legislature passed SB22-208, titled “Concerning Just Compensation for the Condemnation of Property Encumbered by a Conservation Easement in Gross.” If signed, the bill ensures that if property encumbered by a conservation easement will be condemned, and the property will be acquired free and clear of the conservation easement…
6th Circuit Court Weighs in on Proceeds Clause in Conservation Easements and Creates Split with 11th Circuit Court
By Melinda Beck
On March 14, 2022, the U.S. Court of Appeals for the 6th Circuit delivered its opinion in Oakbrook Land Holdings, LLC v. Commissioner regarding the proceeds clause in conservation easements. The court upheld the Tax Court’s ruling in determining that the proceeds regulation for conservation easements in Treas. Reg. § 1.170A-14(g)(6)(ii) did not violate the…
Department of Justice Indicts Seven Related to Syndicated Conservation Easements
By Melinda Beck
The Department of Justice announced March 1, 2022 that five tax shelter promoters and two appraisers have been charged with conspiracy to defraud the United States and other crimes arising from their promotion of syndicated conservation easements which the indictment alleges were abusive tax shelters. The indictment was issued on February 24, 2022, and alleges…
Colorado Division of Conservation Reaches $45 Million Tax Credit Cap for 2021
By Melinda Beck
On February 25, 2022, the Colorado Division of Conservation announced that the 2021 conservation easement tax credit annual cap of $45 million has been reached for the first time since the cap was established in 2014. The Division Director Aaron Welch stated: “The Colorado Division of Conservation is encouraged at the increased pace of private…
Update on America the Beautiful Campaign: Year One Report
By Melinda Beck
San Isabel Land Protection Trust Merges with Colorado Open Lands
By Melinda Beck
Colorado Open Lands and San Isabel Land Protection Trust announced a merger of operations effective December 31, 2021. The two land trusts have collaborated on a number of projects in the past, and the collaboration is taken to a new level with the merger. Colorado Open Lands has protected more than 600,000 acres of land…
11th Circuit Reverses Tax Court on Proceeds Clause
By Melinda Beck
On December 29, 2021, in Hewitt v. Commissioner, the Court of Appeals for the 11th Circuit reversed the U.S. Tax Court’s decision regarding the proceeds clause set forth in Treas. Reg. Sec. 1.170A-14(g)(6)(ii). Numerous cases decided by the Tax Court have determined that the proceeds clause in a conservation easement may not allow the…
Chief Counsel Advice on Pre-Existing Uses in a Conservation Easement
By Melinda Beck
On October 15, 2021, the Office of Chief Counsel of the Internal Revenue Service (IRS) disclosed a copy of a communication in 202141022 suggesting that notification of the exercise or continuance of a use of land that pre-exists the donation of a conservation easement is required in order for the conservation easement to meet the…
IRS Chief Counsel Advice Memorandum on Extinguishment Proceeds Clauses
By Melinda Beck
On July 30, 2021, the Office of Chief Counsel of the Internal Revenue Service (IRS) released a Chief Counsel Advice Memorandum 202130014 on the requirements of I.R.C. Section 170(h) and Treas. Reg. Section 1.170A014(g)(6)(ii) for an extinguishment proceeds clause in a conservation easement. Citing PBBM-Rose Hill, Ltd. v. Commissioner and Coal Property Holdings, LLC v.