Preserving Colorado land through conservation easements

Colorado is a popular state to live in and visit, largely because of its iconic landscapes. As the population grows, a question pops up: how does the state protect the very land that attracts visitors and new residents? Conservation easements are one tool that the state uses to help preserve natural landscapes for the future.

What is a conservation easement?

In simple language, a conservation easement is a legal agreement between a landowner and another organization that restricts how the land can be used, now and in the future, in order to permanently protect the land. Locations are selected for conservation easements due to their unique conservation qualities. These can include properties that support wildlife habitat, hold important water rights, provide scenic views, or help sustain local food supplies. The restrictions put in place by the conservation easement limit future development and destruction of the natural landscape. However, the conservation easement still remains under private ownership and the landowner is able to use the land, sell it, or pass it on to their heirs. More information about the legal rights of land trusts and landowners under conservation easements can be found in a 2012 issue brief published by the Colorado Legislative Council Staff.

It’s estimated that over 2% of Colorado’s land is protected by conservation easements – that’s over 2,000 square miles! Costilla, Douglas, and Crowley Counties have the highest percentage of land in conservation easements. A 2016 map published by Great Outdoors Colorado (GOCO) shows all of the protected land in the state.

How are conservation easements created?

Conservation easements are entirely voluntary and are created when a landowner agrees to sell or donate their land to a charitable organization (like a land trust) or government entity. Colorado Parks and Wildlife is the state agency with the authority to purchase land for conservation easements, typically using GOCO funding. These projects are detailed in GOCO’s annual reports. According to the most recent report, in 2022-23, GOCO funded over 16,000 conservation easement acres and reimbursed over $3 million for land acquisition.

Landowners who choose to donate their land to conservation easements also receive financial compensation in the form of tax benefits. Conservation easements that meet federal requirements can deduct their donation from their federal income taxes. At the state level, Colorado offers a state income tax credit for qualifying land donations. The Department of Regulatory Agencies Division of Conservation issued $45 million in conservation easement tax credits in 2024. Check out the Division’s website for more information about how to qualify for the state tax credit.

What are the benefits of conservation easements?

The most important benefit of a conservation easement is to Colorado’s public by protecting wildlife habitats, open space, historic buildings, or providing public access to the preserved land. However, a 2017 study by Colorado State University measuring the return on investment of state-purchased conservation easements found a financial benefit as well. The authors looked at data on land with conservation easements to assess ecological and economic benefits of protecting the land. Some of these benefits include natural water filtration, soil retention, and air pollution removal. The study found that Colorado’s public has received between $5.5-$13.7 billion in economic benefit from conserving land through conservation easements. This means a return on investment of between $4-$12 for every $1 the state spends on land purchases and tax credits – a great investment in Colorado’s future!