C.R.S.
Section 39-30-104
Credit against tax
- investment in certain property
- definitions
(1)
Intentionally left blank —Ed.(a)
There shall be allowed to any person as a credit against the tax imposed by article 22 of this title 39, for income tax years commencing on or after January 1, 1986, an amount equal to the total of three percent of the total qualified investment, as determined under section 46 (c)(2) of the federal “Internal Revenue Code of 1986”, as amended, in such taxable year in qualified property as defined in section 48 of the internal revenue code to the extent that such investment is in property that is used solely and exclusively in an enterprise zone for at least one year. The references in this subsection (1) to sections 46 (c)(2) and 48 of the internal revenue code mean sections 46 (c)(2) and 48 of the internal revenue code as they existed immediately prior to the enactment of the federal “Revenue Reconciliation Act of 1990”.(b)
Intentionally left blank —Ed.(I)
Except as provided in subparagraph (IV) of this paragraph (b), for income tax years commencing on or after January 1, 2011, and for each income tax year thereafter, a commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle weight rating of fifty-four thousand pounds or greater that is model year 2010 or newer and is designated as Class A personal property as specified in section 42-3-106 (2)(a), C.R.S., as well as any parts associated with the vehicle at the time of purchase, shall be deemed to be used solely and exclusively in an enterprise zone if it is licensed and registered within the state and predominantly housed and based at the taxpayer’s business trucking facility within an enterprise zone for the twelve-month period following its purchase.(II)
The income tax credit for a qualified investment in a commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle weight rating of fifty-four thousand pounds or greater that is model year 2010 or newer and is designated as Class A personal property as specified in section 42-3-106 (2)(a), C.R.S., as well as any parts associated with the vehicle at the time of purchase, shall be allowed in an amount equal to one and one-half of one percent of the total qualified investment if the model year of the commercial truck, truck tractor, tractor, or semitrailer was sold as new during such income tax year;(III)
For purposes of this paragraph (b), “facility” means any factory, mill, plant, refinery, warehouse, feedlot, building, or complex of buildings located within the state, including the land on which such facility is located and all machinery, equipment, and other real and tangible personal property located at or within such facility and used in connection with the operation of such facility, which facility the taxpayer owns, rents, or leases in the business’s name at which continuous and ongoing operational activities of the business are maintained and at which at least one full-time employee of the business is employed.(IV)
To qualify for the tax credit granted under this paragraph (b), a claimant shall be certified by the Colorado economic development commission created in section 24-46-102, C.R.S.(V)
The Colorado economic development commission shall certify people eligible for the income tax credit granted in this paragraph (b) but shall not certify the income tax credit granted in this paragraph (b) if the certification results in more credits being claimed than are allocated pursuant to section 42-1-225, C.R.S.(VI)
To implement this section, the Colorado economic development commission shall track the amount of the credits authorized and, by January 30 of each year, transmit to the state treasurer a statement of the amount of tax credits certified pursuant to this paragraph (b) for the previous year.(VII)
No later than September 1, 2012, and no later than September 1 of each year thereafter through September 1, 2014, the Colorado economic development commission shall provide the department of revenue with an electronic report of the taxpayers receiving a credit allowed in this paragraph (b) for the preceding calendar year or any fiscal year ending in the preceding calendar year and any credits disallowed pursuant to subparagraph (V) of this paragraph (b). The report shall contain the following information:(A)
The taxpayer’s name;(B)
The taxpayer’s Colorado account number and federal employer identification number;(C)
The amount of the credit allowed in this section; and(D)
Any associated taxpayers’ names, Colorado account numbers, and federal employer identification numbers or social security numbers, if the credit allowed in this section is allocated from a pass-through entity.(2)
Intentionally left blank —Ed.(a)
Repealed.(b)
In addition to the limitations set forth in paragraph (a) of this subsection (2), for income tax years commencing on or after January 1, 2011, but prior to January 1, 2014, any taxpayer that is eligible to claim a credit pursuant to subsection (1) of this section in excess of five hundred thousand dollars shall defer claiming any amount of the credit allowed pursuant to this section that exceeds five hundred thousand dollars until an income tax year commencing on or after January 1, 2014. The five hundred thousand dollar limitation specified in this paragraph (b) shall apply to any credit allowed in the income tax years commencing on or after January 1, 2011, but prior to January 1, 2014, including any amount carried forward from a prior year.(c)
Intentionally left blank —Ed.(I)
For income tax years commencing on or after January 1, 2014, except as provided in section 24-46-108 and subsection (2)(c)(II) of this section, the amount that may be claimed by a taxpayer for an income tax year and that is not applied or refunded under section 24-46-108 is limited to the lesser of:(A)
The sum of up to five thousand dollars of the taxpayer’s actual tax liability for the income tax year plus fifty percent of any portion of the tax liability for the income tax year that exceeds five thousand dollars; or(B)
Seven hundred fifty thousand dollars plus any investment tax credit carryovers previously allowed in subsection (2.5) of this section.(II)
Intentionally left blank —Ed.(A)
A taxpayer may seek a waiver of the limitation specified in subparagraph (I) of this paragraph (c) by completing a written application to the Colorado economic development commission for permission to claim a credit in excess of such limit for the income tax year in which the total qualified investment is made. The application must include an identification of the substantial positive impact the waiver of the limitation would have on investments and on well-paying jobs in the enterprise zone, documentation that demonstrates that without the waiver of the limitation the substantial positive impact on investments and on well-paying jobs in the enterprise zone is not likely to occur, and information that the waiver of the limitation is a substantial factor to the start-up, expansion, or relocation of the taxpayer’s business, that receipt of the waiver of the limitation is a major factor in the taxpayer’s decision, and that without the waiver of the limitation the taxpayer is not likely to make the qualified investment. In deciding whether to grant the waiver of the limitation, the commission must consider the overall economic health of this state and the economic viability of the arguments made by the taxpayer in support of the taxpayer’s application. The Colorado economic development commission may require the taxpayer to provide an independent analysis, at the taxpayer’s expense, substantiating the taxpayer’s arguments in support of the application. The taxpayer’s application must be considered at a regularly scheduled meeting of the Colorado economic development commission where the public is allowed to comment.(B)
The Colorado economic development commission may allow all, part, or none of a taxpayer’s application to waive the limitation specified in subparagraph (I) of this paragraph (c). The Colorado economic development commission shall issue a credit certificate that sets forth the amount of the credit that the taxpayer may claim for the income tax year in which the total qualified investment is made. The credit certificate shall be submitted by the taxpayer to the department of revenue with the taxpayer’s income tax return for the tax year for which the credit certificate is issued.(C)
In the event the Colorado economic development commission approves a taxpayer’s application to waive the limitation specified in subparagraph (I) of this paragraph (c), the Colorado economic development commission shall include its decision in the enterprise zone annual report to the general assembly specified in section 39-30-103 (4)(b.7), including the taxpayer’s name, the amount of the credit that the commission allowed the taxpayer to claim, and the Colorado economic development commission’s justification for approving the application.(III)
Intentionally left blank —Ed.(A)
Except as otherwise provided in sections 24-46-104.3, 24-46-107, and 24-46-108 and subsection (2)(c)(III)(B) of this section, any excess credit allowed pursuant to this subsection (2)(c) shall be an investment tax credit carryover to each of the fourteen income tax years following the unused credit year.(B)
Except as otherwise provided in sections 24-46-104.3 and 24-46-107, any excess credit allowed pursuant to this subsection (2)(c) for a renewable energy investment made in an income tax year commencing before January 1, 2018, shall be an investment tax credit carryover for twenty-two income tax years following the year the credit was originally allowed.(IV)
The limitation contained in this paragraph (c) on the amount a taxpayer may claim for the income tax year in which the total qualified investment is made does not limit the total amount of the credit allowed under subsection (1) of this section, nor does it limit the ability of a taxpayer to carryover a credit to subsequent tax years as allowed in subparagraph (III) of this paragraph (c) or previously allowed in subsection (2.5) of this section.(V)
In computing the amount that may be claimed by a taxpayer pursuant to this paragraph (c), a taxpayer’s actual tax liability for the income tax year shall be derived from the calculated tax before any reduction of credits.(II)
Except as provided in section 24-46-107, any excess credit claimed pursuant to this section for a renewable energy investment made in an income tax year commencing before January 1, 2018, shall be an investment tax credit carryover for twenty income tax years following the year the credit was originally allowed.(b)
Intentionally left blank —Ed.(I)
Except as provided in section 24-46-107 and subsection (2.5)(b)(II) of this section, a taxpayer that deferred claiming any credit in excess of five hundred thousand dollars during an income tax year commencing on or after January 1, 2011, but prior to January 1, 2014, pursuant to subsection (2)(b) of this section shall be allowed to claim the deferred credit as an investment tax credit carryover for twelve income tax years following the year the credit was originally allowed plus one additional income tax year for each income tax year that the credit was deferred pursuant to subsection (2)(b) of this section.(II)
Except as provided in section 24-46-107, a taxpayer is allowed to claim the deferred credit described in subsection (2.5)(b)(I) of this section for a renewable energy investment made in an income tax year commencing before January 1, 2018, as an investment tax credit carryover for twenty income tax years following the year the credit was originally allowed plus one additional income tax year for each income tax year that the credit was deferred pursuant to subsection (2)(b) of this section.(2.6)
Intentionally left blank —Ed.(a)
Except as provided in section 24-46-104.3 and subsection (2.6)(b) of this section and notwithstanding any other provision in this section, in each income tax year commencing on or after January 1, 2015, but before January 1, 2021, a taxpayer who places a new renewable energy investment in service on or after January 1, 2015, but before January 1, 2021, that results in a credit pursuant to subsection (1) of this section may elect to receive a refund of eighty percent of the amount of such credit as specified in this subsection (2.6)(a) and forego the remaining twenty percent as a cost of such election. If eighty percent of the amount of the credit in subsection (1) of this section is:(I)
Seven hundred fifty thousand dollars or less, the taxpayer receives the full refund in the first tax year; or(II)
More than seven hundred fifty thousand dollars, the taxpayer annually receives a refund not to exceed seven hundred fifty thousand dollars per income tax year until eighty percent of the amount of the credit in subsection (1) of this section for the new renewable energy investment described in the final certification is completely refunded to the taxpayer.(b)
A taxpayer may make the election allowed in paragraph (a) of this subsection (2.6) for more than one new renewable energy investment per income tax year. If a taxpayer makes an election allowed in paragraph (a) of this subsection (2.6) for more than one new renewable energy investment, then the taxpayer may only receive the refund allowed in said paragraph (a) for any subsequent new renewable energy investment after the eighty percent of the amount of the credit for the previous new renewable energy investment is completely refunded to the taxpayer. Under no circumstances may a taxpayer making the required election specified in paragraph (a) of this subsection (2.6) receive refunds allowed pursuant to this subsection (2.6) totaling more than seven hundred fifty thousand dollars per income tax year.(c)
The taxpayer makes an election described in paragraph (a) of this subsection (2.6) by filing an election statement on such form as prescribed by the department of revenue not later than the due date, including extensions, for filing the tax return for the taxable year during which the new renewable energy investment described in the final certification is placed into service.(d)
The election described in paragraph (a) of this subsection (2.6) only applies to the renewable energy investment described in the final certification.(e)
The limitations on investment tax credit carryovers specified in subsections (2) and (2.5) of this section do not apply to any credit for which a taxpayer elects to seek a refund pursuant to this subsection (2.6). The refund specified in this subsection (2.6) is in addition to any other credits that a taxpayer may claim for other renewable energy investments pursuant to this section.(f)
For purposes of this subsection (2.6), unless the context otherwise requires:(I)
“Final certification” means a document prepared by the Colorado office of economic development and provided to the taxpayer granting approval for a project after it is placed in service.(II)
“Taxpayer” means the entire affiliated group if the taxpayer is part of an affiliated group.(2.7)
Intentionally left blank —Ed.(a)
The Colorado economic development commission shall annually post on its website or on the Colorado office of economic development’s website the following information regarding any enterprise zone investment tax credit certified under this section:(I)
The enterprise zone for the certified credit;(II)
The name of the taxpayer or business;(III)
The type of business;(IV)
The tax year for which the credit is certified;(V)
The total qualified investment reported;(VI)
Whether the credit is for a renewable energy investment as defined in subsection (2.8) of this section;(VII)
The number of employees or contractors hired for a qualified investment;(VIII)
The number of construction personnel hired for a qualified investment;(IX)
The average salary or hourly wage of the employees, contractors, and construction personnel hired for a qualified investment;(X)
Any landowner lease payments made or land purchased for a qualified investment;(XI)
The estimated tax revenues the state and local governments will receive as a result of the qualified investment;(XII)
Any other economic benefits resulting from the qualified investment;(XIII)
The amount of the qualified investment that qualifies for the credit;(XIV)
The calculated credit; and(XV)
The county where the qualified investment is made.(b)
The taxpayer who made the qualified investment shall use reasonable efforts to obtain, estimate, and provide to the Colorado economic development commission the information required to be reported pursuant to this subsection (2.7).(c)
Notwithstanding section 24-1-136 (11), C.R.S., no later than November 1, 2020, and every November 1 thereafter, the Colorado economic development commission shall post on its website or on the Colorado office of economic development’s website the level of renewable energy investment on and after June 5, 2015.(2.8)
For purposes of this section, “renewable energy investment” means an investment that qualifies for the credit specified in paragraph (a) of subsection (1) of this section for projects that generate electricity from eligible energy resources as defined in section 40-2-124 (1), C.R.S.(II)
In addition to any other credit allowed under this section, for income tax years commencing on or after January 1, 2014, there shall be allowed to any person as a credit against the tax imposed by article 22 of this title an amount equal to twelve percent of the total investment made during the taxable year in a qualified job training program.(b)
For purposes of this subsection (4):(I)
“Qualified job training program” means a structured training or basic education program conducted on-site or off-site by the taxpayer or another entity to improve the job skills of employees employed by the taxpayer working predominantly within an enterprise zone.(II)
“Total investment” means:(A)
Land, building, real property improvement, leasehold improvement, or space lease costs and the costs of any capital equipment purchased or leased by the taxpayer and used entirely within an enterprise zone primarily for qualified job training program purposes or to make a training site accessible, when such costs are not the subject of a credit under subsection (1) of this section; and(B)
Expenses of a qualified job training program, whether incurred within or outside of an enterprise zone, including expensed equipment, supplies, training staff wages or fees, training contract costs, temporary space rental, travel expenses, and other expense costs of qualified job training programs for employees working predominantly within an enterprise zone.(5)
and (6) Repealed.(7)
A person that claims a credit pursuant to section 39-22-551 is not entitled to claim the credit allowed pursuant to this section for the same improvements for which a credit was allowed by that section. A person that claims a credit pursuant to section 39-22-552 or 39-22-553 is not entitled to claim the credit allowed pursuant to this section for the same project for which a credit was allowed by those sections.
Source:
Section 39-30-104 — Credit against tax - investment in certain property - definitions, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-39.pdf (accessed Oct. 20, 2023).
Up to date