On January 11, 2012, Rep. Sal Pace introduced HB 12-1042 – Concerning a State Income Tax Credit Related to the Portion of the Colorado Estate Taxes Paid that are Attributable to Agricultural Land. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.
The bill establishes an income tax credit for a person who inherits agricultural land located within the state that is equal to the portion of Colorado estate taxes attributable to the transfer of the land. The tax credit is subject to the following requirements:
- If more than one person inherits the land, the credit is apportioned among all beneficiaries;
- If the credit exceeds the income taxes owed, the excess is refundable to the taxpayer; and
- If the land is reclassified in the 10 years after the credit is claimed, the taxpayer is required to repay the credit, with interest, to the state as part of an amended income tax return.
Summaries of other featured bills can be found here.