Huber v. Kenna

The General Assembly in 1999 passed the Conservation Easement Tax Credit Act, which created a $100,000 state income tax credit for taxpayers who donate a property easement for conservation purposes. § 39-22-522, C.R.S. (1999). The respondents are two married couples who purchased property as tenants in common and subsequently donated a conservation easement. Respondents split the value of the donated easement — $154,700—in half, with each couple claiming a tax credit of $77,350 on their tax returns.

In 2003, petitioner Colorado Department of Revenue issued notices of deficiency to each couple…