Colorado employers may qualify for the Credit for Employer Paid Leave of Absence of Live Organ Donation.
In order to qualify for this credit, you must have:
- Been an employer that deducts and withholds Colorado income tax from the wages paid to a qualified employee during the tax year, and
- Have incurred expenses during the tax year for:
- Paying an employee during their leave of absence period, or
- Temporary replacement help, during an employee's leave of absence period
Note: "Leave of absence period" means the period, not exceeding ten working days or the hourly equivalent of ten working days per employee, during which a taxpayer provides a paid leave of absence to an employee for the purpose or organ donation. The terms does NOT include a period during which an employee utilizes any annual leave or sick days that the employee has been given by the employer.
The amount of credit allowed is 35% of your expenses, as described above, incurred during the tax year.
You may not claim a tax credit related to a leave of absence period for an employee who you pay $80,000, or more in wages during the income tax year.
If the amount of credit allowed in the income tax year exceeds your tax liability for that income tax year, you may carry forward and apply the unused credit against the income tax due in each of the next five income tax years.
Upon request of the Department of Revenue as part of an audit, you (as the employer) must provide the Department with documentation from the employee's medical provider, which you received from the employee, that verifies the employee's organ donation. If you cannot provide the documentation, then you are ineligible for the credit. Please keep this documentation for your records.
How do I claim the Credit for Employer Paid Leave of Absence for Live Organ Donation Affidavit?
The Credit for Employer Paid Leave of Absence for Live Organ Donation Affidavit is claim using the DR 0375. The DR 0375 must be filed with your Income Tax Return and is available for employers filing returns on forms DR, 0104, DR 0105, DR 0106, or DR 0112. This form can be completed electronically or by paper.
Filing Electronically
File an electronic return using our free and secure Revenue Online service at Colorado.gov/Revenue Online. You may also file using third party tax software or with a paid tax preparer. Please be aware that not all third party tax software supports the credit.
File Using a Paper Return of Downloaded PDF Form
File by paper by downloading and completing the following PDF Forms:
DR 0375 - Instructions for Credit for Employer Paid Leave of Live Organ Donation Affidavit
DR 0104CR - Individual Credit Schedule
DR 0105 - Schedule G
DR 0106 CR - Colorado Pass-Through Entity Credit Schedule
DR 0112CR - Credit Schedule for Corporations
Completed forms should be mailed following the instructions included with the taxpayer's income tax return (DR 0104, DR 0105, DR 0106 or DR 0112).