39-22-304(2)(f) Gross Conservation Easement Addition. Basis and Purpose. The statutory bases for this rule are sections 39-21-112(1), 39-22-

304(3)(f), and 39-22-522, C.R.S. The purpose of this rule is to clarify the requirement to add back, in the calculation of Colorado taxable income, any federal charitable contribution deduction a taxpayer claims for the donation of a gross conservation easement when a Colorado gross conservation easement credit is also claimed based on the donation of the same gross conservation easement. (1) Except as provided in paragraph (2) of this rule, any taxpayer that claims both a charitable contribution deduction pursuant to section 170 of the Internal Revenue Code and a gross conservation easement credit pursuant to section 39-22-522, C.R.S. based on the same gross conservation easement donation shall add the amount of the federal deduction back to taxable income in determining the taxpayer's Colorado taxable income. The taxpayer claiming the deduction is required to make the addition irrespective of whether all or part of the credit is: (a) waitlisted pursuant to section 39-22-522(2.5) C.R.S.; (b) carried forward to a subsequent tax year pursuant to section 39-22-522(5) C.R.S.; (c) transferred to another taxpayer pursuant to section 39-22-522(7) C.R.S; or (d) allowed as increments in subsequent tax years pursuant to section 39-22- 522(4)(a)(II.5), C.R.S. (2) With respect to any single gross conservation easement donation, the aggregate addition required by this rule is limited to the contribution amount upon which the gross conservation easement credit claimed is based. (a) In the case of a donation made by joint tenants, tenants in common, a partnership, S corporation, or other similar entity or ownership group, the limitation prescribed by this paragraph (2) shall apply to the entity or group collectively and shares thereof shall be allocated to the entity's or group’s owners, partners, members, or shareholders in the same proportion as prescribed for the credit pursuant to section 39-22-522(4)(b), C.R.S. For example, if sixty percent of a credit is allocated to a partner in a partnership, the aggregate addition required for that partner is limited to sixty percent of the contribution amount upon which the gross conservation easement credit claimed is based.