(1) The portion of any county within an enterprise zone designated pursuant to section 39-30-103 shall be designated as an enhanced rural enterprise zone if the county that contains the area to be so designated meets two or more of the following criteria:
(a) The county has an unemployment rate at least fifty percent above the state average unemployment rate for the most recent period of twelve consecutive months for which data are available from the department of labor and employment;
(b) The county has a population growth rate less than twenty-five percent of the state average population growth rate for the most recent five-year period for which data are available from the United States census bureau or the department of local affairs, or if such data are not available for any five-year period, for the most recent period of not less than five nor more than ten years for which such data are available;
(c) The average per capita income in the county is less than seventy-five percent of the state average per capita income for the most recent period for which data are available from the United States census bureau or the department of local affairs;
(d) The total assessed value of all nonresidential property within the county ranks in the lower one-half of all counties based on the total value of nonresidential property for the most recent year for which such data are available from the department of local affairs;
(e) The county has a population of five thousand or less as estimated by the department of local affairs.
(1.5) On January 1, 2025, through December 31, 2035, the portion of any county within an enterprise zone in a rural area, as defined in section 39-30-103 (1.5), that is a tier one transition community, as defined in section 8-83-502 (10), is designated as an enhanced rural enterprise zone pursuant to this section.
(2) By December 1, 2002, and every two years thereafter, the director of the Colorado office of economic development shall determine whether each county meets two or more of the criteria specified in subsection (1) of this section or meets the single criterion specified in subsection (1.5) of this section. Such determination shall be based on the most recent statistics available. The director of the Colorado office of economic development shall provide to each enterprise zone administrator and to the board of county commissioners of each eligible county a list of the counties that meet two or more of the criteria specified in subsection (1) of this section or meet the single criterion specified in subsection (1.5) of this section.
(3) If a county containing a previously designated enhanced rural enterprise zone does not appear on the biennial list of eligible counties provided by the director of the Colorado office of economic development, the enterprise zone within such county shall be terminated as an enhanced rural enterprise zone as of January 1 following the issuance of such list. If the county appears again on a subsequent list of eligible counties, the portion of the county within an enterprise zone shall be designated as an enhanced rural enterprise zone.
(4) The termination of an enhanced rural enterprise zone shall not restrict, curtail, terminate, or otherwise cut off any tax credits that were earned by any taxpayer based on transactions completed while a county was designated as an enhanced rural enterprise zone. In addition, the director of the Colorado office of economic development shall establish procedures for recognizing and allowing credits to taxpayers who have taken actions in reliance on agreements reached with enhanced rural enterprise zone administrators or local governments for long-term investments.
(5) If the termination of an enhanced rural enterprise zone would prevent a taxpayer from qualifying for tax benefits under this article 30 and the taxpayer can identify job creation or capital expansion activities that were planned before the director of the Colorado office of economic development issued the list of eligible counties and that would have otherwise entitled the taxpayer to claim tax benefits under section 39-30-105.1, the enterprise zone administrator and the taxpayer shall jointly certify detailed information about such planned activities. A taxpayer who files such certification with the taxpayer's state income tax return may claim tax benefits otherwise actually earned up to the limits of such certified information for a period not to exceed the five tax years following the year in which the enhanced rural enterprise zone was terminated. It is the intent of this subsection (5) to permit taxpayers to claim only those tax benefits on which they demonstrably relied in making business planning decisions, and, except as specifically provided in this subsection (5), nothing in this subsection (5) may be construed to authorize any enterprise zone administrator to grant tax benefits that have been repealed by law or to grant tax benefits in excess of the limits established by law.
Source: L. 2002: Entire section added, p. 1105, � 3, effective August 7. L. 2008: (2), (3), (4), and (5) amended, p. 219, � 3, effective March 26. L. 2014: (5) amended, (HB 14-1363), ch. 302, p. 1274, � 42, effective May 31. L. 2020: (5) amended, (HB 20-1166), ch. 103, p. 398, � 6, effective April 1. L. 2024: (1.5) added and (2) amended, (SB 24-190), ch. 280, p. 1872, � 7, effective August 7.
Cross references: For the legislative declaration in SB 24-190, see section 1 of chapter 280, Session Laws of Colorado 2024.
39-30-103.5. Credit against tax - contributions to enterprise zone administrators to implement economic development plans - repeal. (1) (a) (I) Any taxpayer who makes a monetary or in-kind contribution for the purpose of implementing the economic development plan for the enterprise zone to the person or agency designated as the enterprise zone administrator by the Colorado economic development commission, shall be allowed a credit against the income tax imposed by article 22 of this title 39 in an amount equal to twenty-five percent of the total value of the contribution as certified by the enterprise zone administrator.
(II) (Deleted by amendment, L. 2020.)
(b) The credit allowed by paragraph (a) of this subsection (1) shall not exceed one hundred thousand dollars or the total amount of the income tax imposed on the taxpayer's income by article 22 of this title for the tax year for which the credit is claimed, whichever is less. In-kind contributions shall not exceed fifty percent of the total credit claimed.
(c) Upon request, the enterprise zone administrator, acting on behalf of the department of revenue, shall provide the taxpayer with a form to be filed with the department of revenue for the purpose of claiming the credit allowed by this section which shall be accompanied by a copy of the certification of the value and purpose of the contribution furnished to the taxpayer by the enterprise zone administrator.
(d) If the amount of the credit allowed pursuant to the provisions of this section exceeds the amount of income taxes otherwise due on the income of the taxpayer in the income tax year for which the credit is being claimed, the amount of the credit not used as an offset against income taxes in said income tax year may be carried forward as a credit against subsequent years' income tax liability for a period not exceeding five years and shall be applied first to the earliest income tax years possible. Any credit remaining after said period shall not be refunded or credited to the taxpayer.
(e) On or before November 1, 2000, and November 1 of each year thereafter, each zone administrator shall provide to the director of the Colorado office of economic development on behalf of the Colorado economic development commission a list of all programs, projects, and organizations to which taxpayers may contribute during the next calendar year for the purpose of implementing the economic development plan of the zone and receiving a tax credit pursuant to this section. The list shall be accompanied by a description of each program, project, or organization, including the purpose and relationship of the program, project, or organization to the economic development goals of the enterprise zone, the expected benefits of the program, project, or organization to the enterprise zone, and an estimate of the amount of potential contributions to the program, project, or organization during the next calendar year. Any modifications to a list, including programs, projects, or organizations that are to be added thereto, shall be submitted to the director of the office of economic development on behalf of the commission by the zone administrator no later than thirty days after the modification is made. Commencing July 1, 1999, the commission is authorized to hold hearings and review any new program, project, or organization included on a list that is submitted to the director of the Colorado office of economic development on behalf of the commission pursuant to this section, any modification to a list, and any other program, project, or organization that the commission determines has changed materially. A list or modification of a list that is submitted to the director of the Colorado office of economic development on behalf of the commission pursuant to this section shall not be considered final until thirty days after the commission has received such information. The commission shall approve any program, project, or organization that it determines is eligible under the requirements of this section or is essential to the mission of the enterprise zone upon a majority vote of the members of the commission present at a meeting at which such approval is considered. The director of the Colorado office of economic development on behalf of the commission shall notify the zone administrator of any program, project, or organization that is not approved within thirty days of receipt of the list or modification of the list. Any program, project, or organization not approved by the commission may request that the commission reconsider its decision within thirty days after the date the notice indicating that the program, project, or organization was not approved was provided to the zone administrator. A zone administrator may accept contributions for any program, project, or organization it has submitted pursuant to this paragraph (e).
(2) Repealed.
(3) (a) Prior to January 1, 2023, monetary or in-kind contributions to promote temporary, emergency, or transitional housing programs for the homeless that offer or provide referrals to child care, job placement, and counseling services for the purpose of promoting employment for homeless persons in enterprise zones shall be deemed to be for the purpose of implementing the economic development plan for the enterprise zone and shall include but not be limited to the following types of contributions:
(I) Donating money, real estate, or property to the enterprise zone for the establishment of temporary, emergency, or transitional housing for the homeless to include child care and job placement services;
(II) Donating money to the enterprise zone to establish a grant or loan program for homeless individuals requiring financial assistance for temporary, emergency, or transitional housing or child care;
(III) Pooling moneys of several businesses and donating those moneys to the enterprise zone for the establishment of temporary, emergency, or transitional housing programs for the homeless that offer or provide referrals to child care, job placement, and counseling services for the purpose of promoting employment for homeless persons;
(IV) Donating money to the enterprise zone for the training of homeless individuals to obtain employment; and
(V) Donating money, services, or equipment to the enterprise zone for the establishment of an information dissemination program to provide information and referral services to assist a homeless individual in obtaining temporary, emergency, or transitional housing, child care, or employment.
(b) Repealed.
(c) This subsection (3) is repealed, effective December 31, 2032.
(3.5) For income tax years commencing on and after January 1, 2003, monetary or in-kind contributions to promote nonprofit or government-funded community development projects in enterprise zones shall be deemed to be for the purpose of implementing the economic development plan for the enterprise zone.
(4) In no event shall credits be allowed pursuant to this section for contributions that directly benefit the contributor or that are not directly related to job creation, job preservation, or other purposes specified in subsections (2), (3), and (3.5) of this section.
(5) (a) (I) Contributions pursuant to this section may be made directly to programs, projects, or organizations certified by the enterprise zone administrator. The enterprise zone administrator shall only certify programs, projects, or organizations that meet the criteria set forth in this section for the purpose of receiving direct contributions.
(II) Each program, project, and organization certified by the enterprise zone administrator pursuant to this paragraph (a) shall submit a report at least once per year, or more often if required by the enterprise zone administrator, indicating the total value of contributions received for which tax credits would be allowed pursuant to this section and the source of the contribution.
(b) Repealed.
(6) No later than ninety days after making a certification of value pursuant to subsection (1) of this section, the enterprise zone administrator making the certification shall report to the director of the Colorado office of economic development on behalf of the Colorado economic development commission the total value of the contribution as certified by the administrator, the source of the contribution, the purpose of the contribution, and the relationship of the stated purpose of the contribution to the enterprise zone's goals or job creation objectives.
(7) The director of the Colorado office of economic development on behalf of the Colorado economic development commission or the enterprise zone administrator may release information concerning the source and amount of contributions made pursuant to this section, as well as the amount of the credits allowed pursuant to this section.
(8) (a) Any enterprise zone administrator that provides oversight, management, or other administrative services to a program, project, or organization that has been approved by the economic development commission for purposes of the contribution tax credit as defined in this section is authorized to charge reasonable fees to programs, projects, and organizations as defined in this section. Each enterprise zone administrator that charges administrative fees pursuant to this paragraph (a) shall establish a reasonable policy regarding the imposition of such fees and shall submit the policy to the Colorado economic development commission for review and approval.
(b) The Colorado economic development commission shall review the administrative fee policy established by an enterprise zone administrator and shall approve the policy or require that the enterprise zone administrator make modifications to the policy as specified by the commission before approving the policy.
Source: L. 89: Entire section added, p. 1519, � 1, effective June 7. L. 90: (2) added, p. 1399, � 14, effective May 24. L. 94: (3) added, p. 2085, � 1, effective July 1. L. 96: (1)(a) and (1)(c) amended and (1)(e), (4), (5), (6), and (7) added, p. 1125, �� 2, 3, effective July 1. L. 98: (3)(b) repealed, p. 225, � 1, effective April 10; (2) amended, p. 1371, � 2, effective August 5. L. 99: (1)(e) amended, p. 729, � 3, effective May 20. L. 2000: (1)(a)(I), (1)(e), (6), and (7) amended, p. 1680, � 9, effective July 1. L. 2002: (3.5) added and (4) amended, p. 1107, � 4, effective August 7. L. 2006: (2) amended, p. 1508, � 60, effective June 1. L. 2007: (1)(a)(I) amended, p. 343, � 1, effective August 3. L. 2008: (1)(a)(I), (1)(e), (6), and (7) amended, p. 220, � 4, effective March 26. L. 2010: (8) added, (SB 10-162), ch. 395, p. 1877, � 2, effective January 1, 2012. L. 2013: (5) amended, (HB 13-1190), ch. 158, p. 511, � 1, effective May 3. L. 2020: (1)(a) amended, (HB 20-1177), ch. 118, p. 491, � 1, effective September 14. L. 2021: (2) repealed, (HB 21-1153), ch. 128, p. 517, � 1, effective September 7. L. 2022: IP(3)(a) amended and (3)(c) added, (HB 22-1083), ch. 286, p. 2053, � 2, effective August 10. L. 2024: (5)(b) repealed, (SB 24-016), ch. 476, p. 3339, � 3, effective August 7.
39-30-104. Credit against tax - investment in certain property - definitions - repeal. (1) (a) (I) There is 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.
(II) (A) Notwithstanding subsection (1)(a)(I) of this section, for credits allowed beginning in income tax years commencing on or after January 1, 2026, a taxpayer is not allowed a total credit amount against the tax imposed by article 22 of this title 39 pursuant to subsection (1)(a)(I) of this section in excess of two million dollars and a taxpayer may not claim a credit pursuant to this subsection (1)(a) if the qualified property is directly used in the retail sale of gasoline or diesel fuel for use in motor vehicles or a wireless telecommunications facility.
(B) A taxpayer may seek a waiver of the limitation on the amount of credit established in subsection (1)(a)(II)(A) of this section by completing a written application to the Colorado economic development commission for permission to be allowed a credit in excess of that limitation for the income tax year in which the total qualified investment is made. The application must include identification of the substantial positive impact that 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 in the taxpayer's decision to make a qualified investment in the start-up, retention, expansion, or relocation of the taxpayer's business, such that without the waiver 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, that substantiates 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 at which the public is allowed to comment.
(C) The Colorado economic development commission may allow all, part, or none of a taxpayer's application to waive the limitation on the amount of credit established in subsection (1)(a)(II)(A) of this section. The Colorado economic development commission must issue a credit certificate that sets forth the amount of the credit that the taxpayer is allowed for the income tax year in which the total qualified investment is made. The taxpayer shall submit the credit certificate to the department of revenue with the taxpayer's income tax return for the tax year for which the Colorado economic development commission issued the credit certificate.
(D) If the Colorado economic development commission approves, in whole or in part, a taxpayer's application to waive the limitation on the amount of credit established in subsection (1)(a)(II)(A) of this section, the Colorado economic development commission shall include its decision in the enterprise zone annual report to the general assembly, including the taxpayer's name, the amount of the credit that the commission allowed, and the Colorado economic development commission's justification for approving the application.
(E) For purposes of this subsection (1)(a), wireless telecommunications facility or facility means equipment at a fixed location that enables wireless communications between user equipment and a communications network, including macro and small wireless facilities, transceivers, antennas, backup power supplies, and comparable equipment, regardless of technological configuration; and the support structure or improvements on, under, or within which the equipment is collocated.
(b) (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) (a) and (b) Repealed.
(c) (I) For income tax years commencing on or after January 1, 2014, except as provided in sections 24-46-104.3 and 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 for investments made in income tax years commencing before January 1, 2014.
(II) (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) (A) Except as otherwise provided in sections 24-46-104.3 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 section 24-46-104.3, 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 subsection (2)(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)(a) of this section, nor does it limit the ability of a taxpayer to carry over a credit to subsequent tax years as allowed in subsection (2)(c)(III) of this section or previously allowed in subsection (2.5) of this section for investments made in income tax years commencing before January 1, 2014.
(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.
(2.5) (a) (I) Notwithstanding section 39-22-507.5 (7)(b), except as provided in section 24-46-107 and except as otherwise provided in subsections (2.5)(a)(II) and (2.5)(b) of this section, any excess credit allowed pursuant to this section for an investment made in an income tax year commencing before January 1, 2014, shall be an investment tax credit carryover to each of the twelve income tax years following the unused credit year.
(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, 2014, is an investment tax credit carryover for twenty income tax years following the year the credit was originally allowed.
(b) (I) 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 subsection (2.5)(b) applies 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.
(II) Except as provided in section 24-46-107 and subsection (2.5)(b)(III) 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 (2.5)(b)(I) 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 (2.5)(b)(I) of this section.
(III) Except as provided in section 24-46-107, a taxpayer is allowed to claim the deferred credit described in subsection (2.5)(b)(II) of this section for a renewable energy investment made in an income tax year commencing before January 1, 2014, 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 (2.5)(b)(I) of this section.
(c) This subsection (2.5) is repealed, effective January 1, 2040.
(2.6) (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) (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.
(3) (Deleted by amendment, L. 96, p. 1127, � 4, effective July 1, 1996.)
(4) (a) (I) In addition to any other credit allowed under this section, for income tax years commencing on or after January 1, 1997, but prior to 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 ten percent of the total investment made during the taxable year in a qualified job training program.
(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: L. 86: Entire article added, p. 1141, � 1, effective July 1. L. 87: (3) added, p. 1470, � 2, effective May 28. L. 91: (3) amended, p. 1988, � 7, effective April 20. L. 92: (2) amended, p. 2220, � 3, effective May 29. L. 96: Entire section amended, p. 1127, � 4, effective July 1. L. 97: (5) repealed, p. 1396, � 2, effective June 3. L. 2007: (6) amended, p. 352, � 9, effective August 3. L. 2009: (1) amended, (HB 09-1298), ch. 417, p. 2313, � 2, effective July 1, 2010. L. 2010: (2) and (2.5) amended, (HB 10-1200), ch. 321, p. 1495, � 1, effective May 27; (1)(b)(I), (1)(b)(II), and (1)(b)(IV) amended and (1)(b)(V), (1)(b)(VI), and (1)(b)(VII) added, (HB 10-1285), ch. 423, p. 2191, � 6, effective July 1. L. 2013: (2), (2.5)(a), and (4)(a) amended and (2.7) added, (HB 13-1142), ch. 224, p. 1049, � 4, effective May 15; (2)(c)(III), (2.5), and (2.7) amended and (2.8) added, (SB 13-286), ch. 302, pp. 1598, 1597, �� 2, 1, effective May 28. L. 2014: IP(2)(c)(I) and (2)(c)(I)(B) amended, (HB 14-1163), ch. 83, p. 326, � 1, effective March 27. L. 2015: (2.6) added and (2.7) and (2.8) amended, (HB 15-1219), ch. 314, p. 1279, � 2, effective June 5. L. 2017: (2.5)(a)(I) and IP(2.6)(a) amended, (HB 17-1356), ch. 237, p. 973, � 3, effective May 24. L. 2020: (2)(a) amended and (6) repealed, (HB 20-1166), ch. 103, p. 398, � 7, effective April 1; (2)(c)(III) and (2.5)(a)(I) amended, (HB 20-1177), ch. 118, p. 492, � 2, effective September 14. L. 2022: (2)(c)(III) and (2.5) amended, (HB 22-1418), ch. 427, p. 3023, � 4, effective August 10; (1)(a) amended and (2)(a) repealed, (HB 22-1025), ch. 145, p. 948, � 11, effective January 1, 2023. L. 2023: (7) added, (HB 23-1272), ch. 167, p. 816, � 22, effective May 11; IP(2)(c)(I), (2)(c)(III)(A), and (2.5)(a)(I) amended, (HB 23-1260), ch. 227, p. 1188, � 4, effective May 20. L. 2025: (1)(a), IP(2)(c)(I), (2)(c)(I)(B), (2)(c)(III), and (2)(c)(IV) amended, (2)(b) repealed, and (2.5) R&RE (HB 25-1296), ch. 202, p. 918, � 17, effective May 16.
Editor's note: Amendments to subsection (2.5) by House Bill 13-1142 and Senate Bill 13-286 were harmonized.
Cross references: (1) For the federal Revenue Reconciliation Act of 1990, see Pub.L. 101-508.
(2) For the legislative declaration in the 2013 act amending subsections (2), (2.5)(a), and (4)(a) and adding subsection (2.7), see section 1 of chapter 224, Session Laws of Colorado 2013.
(3) For the legislative declaration in HB 15-1219, see section 1 of chapter 314, Session Laws of Colorado 2015. For the legislative declaration in HB 23-1272, see section 1 of chapter 167, Session Laws of Colorado 2023. For the legislative declaration in HB 25-1296, see section 1 of chapter 202, Session Laws of Colorado 2025.
39-30-105. Credit for new business facility employees - definitions - repeal. (Repealed)
Source: L. 86: Entire article added, p. 1141, � 1, effective July 1. L. 87: (1) and (2) amended and (4) added, p. 1473, � 1, effective May 25; (1) amended and (3) added, p. 1471, � 3, effective May 28. L. 89: (1)(a) amended, p. 1521, � 5, effective June 7. L. 90: (4) amended, p. 1840, � 20, effective May 31. L. 91: (4) amended, p. 1987, � 4, effective January 1, 1992. L. 91, 1st Ex. Sess.: (4) repealed, p. 13, � 3, effective July 5. L. 92: (1)(a) and (3) amended and (5) added, p. 2219, � 1, effective May 29; (1)(b) amended, p. 1728, � 21, effective July 1. L. 94: (1)(a)(I) amended, p. 1990, � 1, effective July 1. L. 96: (1)(b) and (5) amended, p. 1129, � 5, effective July 1. L. 2002: (1), (2), (3), and (5) amended, p. 1107, � 5, effective August 7. L. 2003: (1)(b) amended, p. 2003, � 70, effective May 22. L. 2007: (1)(a)(I), (1)(a)(IV), (2), and (3)(a) amended and (6) and (7) added, p. 343, � 2, effective August 3; (5)(c) amended, p. 555, � 2, effective August 3. L. 2008: (5)(c) amended and (5)(d) added, p. 16, � 1, effective March 6. L. 2009: (5)(d)(II) amended, (SB 09-292), ch. 369, p. 1981, � 117, effective August 5. L. 2013: (1)(a)(I), (1)(a)(III), (1)(b), (3), (5)(a), (5)(b), and (7)(c)(III)(A) amended and (8) added, (HB 13-1265), ch. 164, p. 524, � 1, effective May 3; (1)(a)(I) and (1)(b) amended, (HB 13-1142), ch. 224, p. 1052, � 5, effective May 15. L. 2014: (1)(a)(I)(B) and (1)(b)(II) repealed, (HB 14-1363), ch. 302, p. 1274, � 43, effective May 31.
Editor's note: Subsection (8) provided for the repeal of this section, effective December 31, 2019. (See L. 2013, p. 524.)
39-30-105.1. Credit for new enterprise zone business employees - definitions. (1) (a) (I) For any income tax year commencing on or after January 1, 2014, any taxpayer who operates a business facility in an enterprise zone is allowed a credit against the income tax imposed by article 22 of this title in an amount equal to one thousand one hundred dollars per income tax year for each business facility employee, pursuant to subsection (5) of this section, who is working within the zone, prorated according to the number of months the employee was employed by the taxpayer during the income tax year. An employee whose primary duties consist of operating a commercial motor vehicle with a commercial driver's license shall be deemed to be working one hundred percent within the zone if the employee spends no more than five percent of his or her total time at any business of the employer other than the business within the zone.
(II) For any income tax year commencing on or after January 1, 2014, any taxpayer who operates a business facility in an enhanced rural enterprise zone is allowed an additional credit against the income tax imposed by article 22 of this title in an amount equal to two thousand dollars per income tax year for each business facility employee who is working within the enhanced rural enterprise zone, prorated according to the number of months such employee was employed by the taxpayer during the income tax year.
(III) A business facility qualifying for the credit is allowed the credit for each subsequent tax year for each business facility employee over the number employed in any prior tax year. Any credit is allowed for a maximum of twelve consecutive months for each business facility employee employed by the taxpayer.
(b) In addition to the credit available under paragraph (a) of this subsection (1), for any income tax year commencing on or after January 1, 2014, a taxpayer qualified under said paragraph (a) is allowed for the first two full income tax years while located in an enterprise zone a credit in an amount equal to one thousand dollars for each business facility employee who is insured under a health insurance plan or program provided through his or her employer. To be eligible for the credit, the employer must contribute fifty percent or more of the total cost of a health insurance plan or program, and such plan or program must be in accordance with the provisions of article 8 of title 10 or part 1, 2, 3, or 4 of article 16 of title 10, C.R.S., or be a self-insurance program and include partial or complete coverage for hospital and physician services.
(2) For business facilities established in an enterprise zone or an enhanced rural enterprise zone, the number of business facility employees engaged or maintained in employment at the business facility for each taxable year for which the credit is claimed must equal or exceed one person.
(3) (a) For any income tax year commencing on or after January 1, 2014, any taxpayer who operates a business within an enterprise zone that adds value through manufacturing or processing to agricultural commodities is allowed in addition to the credit allowed under subsection (1) of this section, while located in the enterprise zone, a credit against the income tax imposed by article 22 of this title in an amount equal to five hundred dollars for each additional business facility employee in excess of the maximum number employed in any prior tax year.
(b) For any income tax year commencing on or after January 1, 2014, any taxpayer who operates a business within an enhanced rural enterprise zone that adds value through manufacturing or processing to agricultural commodities is allowed in addition to the credit allowed under paragraph (a) of this subsection (3) a credit against the income tax imposed by article 22 of this title in an amount equal to five hundred dollars for each additional business facility employee in excess of the maximum number employed in any prior tax year.
(4) (a) (I) Except as provided in sections 24-46-104.3, 24-46-107, and 24-46-108, for any income tax year commencing on or after January 1, 2014, if the total amount of the credits claimed by a taxpayer pursuant to subsections (1)(a)(I), (1)(b), and (3)(a) of this section exceeds the amount of income taxes due on the income of the taxpayer in the income tax year for which the credits are being claimed, the amount of the credits not used as an offset against income taxes in said income tax year or refunded under section 24-46-108 may be carried forward as a credit against subsequent years' tax liability for a period not exceeding five years and is applied first to the earliest income tax years possible. Any amount of the credit that is not used during said period is not refundable to the taxpayer.
(II) Except as provided in sections 24-46-104.3, 24-46-107, and 24-46-108 for any income tax year commencing on or after January 1, 2014, if the total amount of credits claimed by a taxpayer pursuant to subsections (1)(a)(II) and (3)(b) of this section exceeds the amount of income taxes due on the income of the taxpayer in the income tax year for which the credits are being claimed, the amount of credits not used as an offset against income taxes in said income tax year and not used to claim a refund under section 24-46-108 may be carried forward as a credit against subsequent years' tax liability for a period not exceeding seven years and is applied first to the earliest income tax years possible. Any amount of the credit that is not used during said period is not refundable to the taxpayer.
(b) For purposes of this section, a partnership, S corporation, limited liability company, or other entity electing not to be taxed as a corporation may pass through the credits earned under this section in any tax year to its participating partners, shareholders, or members, hereinafter referred to as the investors of the entity, in any percentage the entity chooses, up to the amount of the credit earned in the tax year. Credits earned but unclaimed in a tax year for which the entity elects to be taxed as a corporation may not be distributed to investors in a later tax year for which the entity elects not to be taxed as a corporation. In any tax year for which the entity elects not to be taxed as a corporation, all credits passed through to investors may be carried forward at the investor level for the carryover periods specified in this section.
(c) For purposes of this section, a taxpayer may only claim the business facility employee credit for employees for whom:
(I) The taxpayer withholds social security, medicare, and income taxes under the taxpayer's own federal and state taxpayer identification numbers; or
(II) The taxpayer is the work-site employer, as defined in section 8-70-114 (2)(a)(VII), C.R.S., and an employee leasing company, as defined in section 8-70-114 (2)(a)(V), C.R.S., as the employing unit for, or coemployer with, the taxpayer, and withholds social security, medicare, and income taxes under the employee leasing company's own federal and state taxpayer identification numbers.
(5) (a) The number of business facility employees during any taxable year is determined by dividing by twelve the sum of the number of business facility employees on the last business day of each month of such taxable year. If the business facility is in operation for less than the entire taxable year, the number of business facility employees is determined by dividing the sum of the number of business facility employees on the last business day of each full calendar month during the portion of the taxable year during which the business facility was in operation by the number of full calendar months during the period.
(b) Notwithstanding the provisions of paragraph (a) of this subsection (5), for the purpose of determining the credit allowed by this section in the case of a facility that qualifies as a business facility but is a replacement business facility, the number of business facility employees employed in the operation of the facility is reduced by the average number, determined pursuant to paragraph (a) of this subsection (5), of individuals employed in the operation of the facility that the business facility replaces during the three taxable years preceding the taxable year in which commencement of commercial operations occurs at the business facility.
(6) As used in this section, unless the context otherwise requires:
(a) Building means only structures within which individuals are customarily employed or that are customarily used to house machinery, equipment, or other property.
(b) Business facility means a facility that is operated by the taxpayer in the operation of a revenue-producing enterprise. A facility is not considered a business facility in the hands of the taxpayer if the taxpayer's only activity with respect to the facility is to lease it to another person. If the taxpayer operates only a portion of the facility in the operation of a revenue-producing enterprise and leases another portion of the facility to another person or does not otherwise use the other portions in the operation of a revenue-producing enterprise, the portion operated by the taxpayer in the operation of a revenue-producing enterprise is considered a business facility.
(c) Business facility employee means a person employed by the taxpayer in the operation of a business facility during the taxable year for which the credit allowed by this section is claimed. A person is deemed an employee if the person performs duties in connection with the operation of the business facility on:
(I) A regular, full-time basis;
(II) A part-time basis if the person is customarily performing his or her duties at least twenty hours per week throughout the taxable year; or
(III) A seasonal basis if the person performs his or her duties for substantially all of the season customary for the position in which the person is employed.
(d) Commencement of commercial operations means the first taxable year that the business facility is first available for use by the taxpayer, or first capable of being used by the taxpayer, in the revenue-producing enterprise in which the taxpayer intends to use the business facility.
(e) Facility means any factory, mill, plant, refinery, warehouse, feedlot, building, or complex of buildings located within the state, including the land on which the facility is located and all machinery, equipment, and other real and tangible personal property located at or within the facility and used in connection with the operation of the facility.
(f) Revenue-producing enterprise means an enterprise that engages in the following:
(I) The production, assembly, fabrication, manufacturing, or processing of any agricultural, mineral, or manufactured product;
(II) The storage, warehousing, distribution, or sale of any products of agriculture, mining, or manufacturing;
(III) The feeding of livestock at a feedlot;
(IV) The operation of laboratories or other facilities for scientific, agricultural, animal husbandry, or industrial research, development, or testing;
(V) The performance of services of any type;
(VI) The administrative management of any of the activities listed in subparagraphs (I) to (V) of this paragraph (f); or
(VII) Any combination of any of the activities referred to in subparagraphs (I) to (VI) of this paragraph (f).
Source: L. 2013: Entire section added, (HB 13-1265), ch. 164, p. 526, � 2, effective May 3; (1)(a)(I) and (1)(b) amended, (HB 13-1265), ch. 164, p. 530, � 3, effective May 15. L. 2017: (4)(a) amended, (HB 17-1356), ch. 237, p. 973, � 4, effective May 24. L. 2020: (4)(a)(II) amended, (HB 20-1177), ch. 118, p. 492, � 3, effective September 14. L. 2022: (4)(a) amended, (HB 22-1418), ch. 427, p. 3024, � 5, effective August 10. L. 2023: (4)(a)(I) and (4)(a)(II) amended, (HB 23-1260), ch. 227, p. 1188, � 5, effective May 20.
39-30-105.5. Credit against Colorado income taxes based on expenditures for research and experimental activities. (1) Any taxpayer who makes expenditures in research and experimental activities, as defined in section 174 of the federal Internal Revenue Code of 1986, as amended, which activities are conducted in an enterprise zone for the purpose of carrying out a trade or business, shall be allowed a credit against the income tax imposed by article 22 of this title as follows:
(a) For income tax years commencing on or after January 1, 1989, an amount equal to three percent of the amount by which the amount expended for research and experimental activities in the enterprise zone in the income tax year of the taxpayer exceeds the taxpayer's average of the total actual expenditures for such purposes made in the same area as that which comprises the enterprise zone in the next preceding two income tax years.
(b) Repealed.
(2) Except as provided in sections 24-46-104.3 and 24-46-108, in any one tax year, the amount of such credit allowable for deduction from the taxpayer's tax liability and not applied or refunded under section 24-46-108 shall be the total of:
(a) Twenty-five percent of the total amount of such credit, with the balance carrying forward to the next tax year; and
(b) Any applicable carryforward amount, which amount shall be twenty-five percent of the original amount of such credit. The amount by which the credit allowed by subsection (1) of this section in any one taxable year exceeds the credit allowed to be deducted pursuant to paragraph (a) of this subsection (2) may be carried forward until the total amount of the credit is used.
(3) As used in this section, the term expenditures in research and experimental activities means expenditures made for such purposes, other than expenditures of moneys made available to the taxpayer pursuant to federal or state law, which are paid as expenses under the provisions of the federal Internal Revenue Code of 1986, as amended.
Source: L. 88: Entire section added, p. 1349, � 1, effective July 1. L. 89: (1)(a) amended and (1)(b) repealed, pp. 1522, 1523, �� 7, 11, effective June 7. L. 2017: IP(2) amended, (HB 17-1356), ch. 237, p. 974, � 5, effective May 24. L. 2023: IP(2) amended, (HB 23-1260), ch. 227, p. 1189, � 6, effective May 20.