Tax Credit Connection

Commercial Historic Preservation Tax Credit Applications Closed for 2024 – Reopening January 2025 Heads up—applications for both large and small pool HP tax credit applications are closed for the remainder of 2024. But, don’t worry: OEDIT will be reopening applications next January 21, 2025 when the program receives its yearly credit allocation.  As credits can go quickly, it’s important to plan ahead to submit your application as close to the open date as possible. Have questions on how this affects the timing of your historic preservation tax credit application? Reach out to us today!

EPA Grant Funding Available to Help Pay for Environmental Cleanup Is there a site in your community that could use a little love? Or, have you been considering a Brownfields project, but are curious about what funding is available to help pay for it? Applications are now open for $232 Million in EPA Brownfields grants for projects across the country, including Colorado. This year’s deadline for EPA Brownfields grants is November 14th. This generous grant program has no local match requirement and the funds can be used for a variety of expenses, including site assessments, technical assistance, and cleanup.

𝐇𝐢𝐬𝐭𝐨𝐫𝐢𝐜 𝐏𝐫𝐞𝐬𝐞𝐫𝐯𝐚𝐭𝐢𝐨𝐧 (𝐇𝐏) 𝐂𝐫𝐞𝐝𝐢𝐭𝐬 The rich history of our state is reflected in its historic buildings. These places tell the stories of the people who helped shape Colorado into what we know and love, their triumphs and failures, aspirations and struggles. Studies  have shown that preservation of these historic structures adds to the economic and social health of communities. Thankfully this credit program was extended in 2018 for another 10 years meaning more of our historic treasures will be saved going forward. The Historic Preservation Tax Credit program promotes rehabilitating historic buildings in Colorado for commercial use. To qualify, the building must be a Certified Historic Structure that is at least 50 years old. Certified Historic Structures may be listed individually on or as a contributing property in a district included within the National or State Registrars or listed by a Certified Local Government. Transferability allows both taxpaying and non-taxpaying entities to benefit from the program by selling credits through Tax Credit Connection, Inc. HP credits are issued based on an accountant’s audit of qualifying rehabilitation expenses, including invoices and cancelled checks detailing the work performed. HP credits can be carried forward ten years. If the owner chooses to sell the credit, both the owner and the purchaser of the credit must coordinate their transaction through the Colorado Office of Economic Development & International Trade (OEDIT). Tax Credit Connection, Inc. takes care of this step when we sell the credits. After ten years, any unused and unsold credit will expire and cannot be refunded. 

Brownfields/Environmental Remediation (ER) Credits Brownfields are contaminated properties which can be difficult to use, sell or redevelop. This includes abandoned factories and other industrial facilities, service stations, oil and gas storage facilities, dry cleaning businesses, and  any other business or facility that dealt with hazardous substances, pollutants, or contaminants. The U.S. Government Accounting Office estimates that there are between 400,000 and 600,000 brownfields sites  throughout the U.S. with Colorado certainly having its share of them. Brownfields tax credits were created as an incentive to encourage the cleanup and redevelopment of these contaminated properties. Individuals, organizations, local governments and non-profits who own these properties  can qualify for the credits to recoup a portion of their expenses for the cleanup. Brownfields credits can be carried forward for a period of five years. Like CE credits, they can only be transferred once. Credits are issued only after a determination by the state that no further action is needed at the clean-up site and are based on rigorous and transparent accounting of cleanup expenses. Staff at the Colorado Department of Public Health & Environment (CDPHE) review all invoices and cancelled checks for completed work before issuing the tax credits. There is a $5M annual statewide cap on credits issued, which is an increase from the original $3M cap. Unfortunately demand for these credits still outpaces their availability for developers.

Conservation Easement (CE) Tax Credits Next time you are admiring the mountain views across a grassy meadow, you may be observing a conservation easement property. By purchasing conservation easement tax credits, you can help ensure that there are more  protected lands for generations of Coloradoans to enjoy. Conservation Easements are a way for landowners to monetize their development rights, while maintaining ownership of their property. By conserving private lands, landowners are protecting the scenic views and open space, critical wildlife habitat, clean air, and clean water as a gift to the State of Colorado. In return, the State provides these tax credits as an incentive to encourage more landowners to donate easements. The CE tax credits became stronger than ever in 2014 when the state adopted a new process for reviewing the applications before issuing the certificates. Another enhancement in 2021 created a program where the state is now issuing credits in the buyer’s name for any credits originally created in or after 2021. Once purchased, CE credits can be carried forward for a period of 20 years but can only be transferred once. The program has a  $50,000,000 annual cap. 

$50 Million Conservation Easement Tax Credits Reserved for 2025     On August 7th, the same day that the new CE law went into effect, the Division of Conservation reserved the full cap of $50 million on CE tax credits for 2025. The Division is now issuing credits for 2026, and there are about $17 million credits remaining in the 2026 pool. The previous information is an update that will be particularly important for landowners who are planning future easements. If you have already done your easement and have reserved credits, you don’t have to worry about this cap stuff! Similarly, if you typically buy credits from us, this information might be interesting to you, but it doesn’t affect you directly right now. 

Boreal Toad Release: A Special Partnership to Support an Endangered Species    Ariel recently had a unique opportunity to participate in project that involved lots of collaboration and a beautiful public/private partnership.  Last month, the Denver Zoo, Colorado Parks and Wildlife and landowner Ruthie Brown worked together to restore the endangered Boreal Toad to a wetland area on her family’s private property between South Fork and Creede, Colorado.      The full story can be found here: https://lnkd.in/gneANXxD, but Ariel wanted to share her perspective on this special day:    "It was a dream come true to be able to help those resilient toadlets and tadpoles get a chance to live and reproduce in the wild.  As a girl, I always wanted to work directly with wildlife so I got a chance to experience that.  We released 976 toadlets, which are essentially one inch long toads who have just lost their tails. We also released 1242 boreal tadpoles which were days away from becoming toadlets.  I was able to ride to and from the release site with the head veterinarian, boreal toad project lead and the head of Denver Zoo’s citizen science program.  As you could imagine, we had some fascinating conversations!  This is a great example of how important private lands conservation are to the people and the animals of Colorado."

Funds Available to Help Pay for Conservation Easement Transaction Costs     Let’s face it—conservation easements are expensive! From getting an appraisal, paying for things like baselines and stewardship endowments, doing a conservation easement can set you back $60k-$100k before you see any money back from selling your tax credits.     Keep It Colorado’s Transaction Cost Assistance Program (TCAP) is designed to help cover the costs of doing an easement. TCAP funding supports strategic projects that need help with the transaction costs in order to get done. The program awards up to $75k to each project that’s selected, and even more funds are available this year thanks to support from GOCO and Ducks Unlimited.     Interested in learning more about the program or seeing if your project qualifies? Visit the Keep it Colorado website to read about TCAP funding - https://lnkd.in/gMVSvBFa. Applications close on August 27th.  

Help Spread the Word About Conservation Easement Legislation    With the fast-paced legislative session behind us, it’s a good time to take a step back and reflect on what has changed with the new law. Keep It Colorado recently published this info sheet that will give you all of the details about the new law and what the changes mean for the program. You are welcome to download and share the info sheet far and wide to help spread the word about conservation in Colorado.  

🌍✨ Exciting News! Our President, Ariel, recently returned from an incredible volunteer trip to Tanzania, Africa! ✨🌍 Ariel, along with six amazing women from Village Care Project (VCP), spent 10 days making a difference in the lives of seven villages. Thanks to generous donations, we were able to provide: 💧 Clean, safe drinking water filters 🦟 Mosquito nets to prevent malaria 🏠 Heavy-duty tarps to keep huts warm and dry during monsoon rains 🔦 Solar lanterns for night-time visibility In addition to these essential tools, our contributions allowed us to support an entire additional village. The villagers were deeply touched by our generosity, and it’s heartwarming to know that we’ve helped make their lives a bit easier and safer. Check out some of the incredible photos! From the transformative impact of the tarps to the stunning wildlife encounters, it was truly a trip to remember. 🌿📸