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You may use the Department's free e-file service Revenue Online to file your state income tax. You do not need to login to Revenue Online to File a Return. After you file, you have the option of setting up a Login ID and Password to view your income tax account in Revenue Online. Or, you may opt to e-file through a paid tax professional or purchase tax software to complete and file returns. You may submit your documentation as an E-Filer Attachment via Revenue Online, as well.
If filing by paper, visit the Credits & Subtractions Forms page to download the forms and/or schedules needed to file for the credits listed below. Be sure to use the form for the same tax year for which you are filing. For example, if you are filing a return for 2018, you must include the credit form(s) for 2018 with your return.
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In addition to income tax credits, Colorado also has income tax subtractions (sometimes called deductions). Income tax subtractions change your Colorado Taxable Income from the amount of your Federal Taxable Income. For more information, visit the Income Tax Subtractions web page.
Credits in Alphabetical Order by Name
A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, W
A nonrefundable income tax credit is allowed for a qualified investment in a qualified small business that is in one of the following advanced industries: advanced manufacturing, aerospace, bioscience, electronics, energy and natural resources, infrastructure engineering, or information technology. Credit applications are received and evaluated by the Colorado Office of Economic Development and International Trade (OEDIT) and the credit is allowed only after OEDIT has approved the application and issued a credit certificate to the qualified investor.
Applicable tax years: 2009 through 2031
Maximum carryforward period: Five years
Required forms: DR 0104CR, DR 0105 (Schedule G), or DR 0106CR
Required documentation: Credit certificate from OEDIT
Additional guidance: Advanced Industry Investment Tax Credit
Statutory citation: Sections 39-22-532 and 24-48.5-112, C.R.S.
A nonrefundable income tax credit is allowed to a qualified taxpayer who owns a direct or indirect interest in a qualified affordable housing development located in Colorado. The credit is allowed in an amount determined by the Colorado Housing and Finance Authority (CHFA) and may be claimed by the taxpayer over a six-year credit period. The credit is subject to recapture if the taxpayer's qualified basis in the development decreases.
Applicable tax years: 2015 through 2036
Maximum carryforward period: 11 years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Required documentation: Credit certificate from CHFA
Additional guidance: CHFA State Housing Tax Credits
Statutory citation: Section 39-22-2101, et seq., C.R.S.
A nonrefundable income tax credit is allowed to a qualified taxpayer who owns a direct or indirect interest in a qualified affordable housing development located in a transit and housing investment zone in Colorado. The credit is allowed in an amount determined by the Colorado Housing and Finance Authority (CHFA) and may be claimed by the taxpayer over a six-year credit period. The credit is subject to recapture if the taxpayer's qualified basis in the development decreases.
Applicable tax years: 2027 through 2038
Maximum carryforward period: Three years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Required documentation: Credit certificate from CHFA
Additional guidance: CHFA State Housing Tax Credits
Statutory citation: Section 39-22-5701, et seq., C.R.S.
A nonrefundable income tax credit is allowed to a qualified taxpayer who owns a direct or indirect interest in a qualified affordable housing development located in Colorado. The development must be located in a transit-oriented center within a certified transit-oriented community or in a neighborhood center within a metropolitan planning organization. The credit is allowed in an amount determined by the Colorado Housing and Finance Authority (CHFA) and may be claimed by the taxpayer over a five-year credit period. The credit is subject to recapture if the taxpayer's qualified basis in the development decreases.
Applicable tax years: 2025 through 2034
Maximum carryforward period: Three years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Required documentation: Credit certificate from CHFA
Additional guidance: CHFA State Housing Tax Credits
Statutory citation: Section 39-22-5501, et seq., C.R.S.
A refundable income tax credit is allowed to a qualified taxpayer who actively practices a qualified stewardship practice on a farm or ranch located in Colorado during the tax year. The credit amount is determined in accordance with rules promulgated by the Department of Agriculture. Credit applications are received and evaluated by the Colorado Department of Agriculture and the credit is allowed only after the Department of Agriculture has approved the application and issued a credit certificate to the qualified taxpayer.
Applicable tax years: 2026 through 2030
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Required documentation: Credit certificate from the Department of Agriculture
Additional guidance: Agricultural Stewardship Tax Credit
Statutory citation: Section 39-22-561, C.R.S.
A nonrefundable income tax credit was allowed for tax years commencing prior to January 1, 2023, to an aircraft manufacturer that was located in a Colorado Aviation Development Zone, employed at least 10 full-time employees within the zone, and hired one or more new employees during the income tax year. The allowable credit was $1,200 for each new employee. If the allowable credit exceeds the tax otherwise due, the excess credit can be carried forward up to five years.
Applicable tax years: 2006 through 2022
Maximum carryforward period: Five years
Required forms: DR 0104CR, DR 0105 (Schedule G), or DR 0112CR
Statutory citation: Section 39-35-104, C.R.S.
A refundable income tax credit is allowed to the owner of an aircraft that is designed to run on leaded aviation gasoline but that is modified to use unleaded aviation gasoline instead. The aircraft must be registered with the Federal Aviation Administration in Colorado. An aircraft qualifies for the credit only if a supplemental type certificate or other authorization that approves the completed modification of the aircraft to be powered by unleaded aviation gasoline has been issued. The allowable credit is equal to 50% of the actual out-of-pocket expenses incurred and paid during the tax year for the purpose of modifying the aircraft. The credit is limited to $500 for each qualifying aircraft you modified during the tax year.
Applicable tax years: 2025 through 2029
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Statutory citation: Section 39-22-560, C.R.S.
A refundable income tax credit is allowed to qualifying employers that provide alternative transportation options to their employees working in Colorado for commuting to and from their places of employment. The credit is allowed not only to taxpayers but to certain tax-exempt entities and local governments as well. The amount of the credit is 50% of the amount spent by the employer to provide alternative transportation options with a maximum credit of $125,000 per tax year. The credit is not allowed for any amount spent in excess of $2,000 for any one employee. Prior to earning this credit, employers must file an annual employer plan report with the Department.
Applicable tax years: 2023 through 2026
Required forms: DR 1323 and DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Income Tax Topics: Alternative Transportation Options Credit
Statutory citation: Section 39-22-509, C.R.S.
A refundable income tax credit was allowed to taxpayers and 501(c)(3) organizations for business personal property taxes. The credit was allowed for the amount of property tax paid in Colorado during the income tax year on up to $18,000 of the total actual value of the taxpayer’s business personal property. No credit is allowed for tax years commencing on or after January 1, 2026.
Applicable tax years: 2015 through 2025
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Required documentation: Copy of assessor’s statement showing tax paid
Additional guidance: Income Tax Topics: Business Personal Property Credit
Statutory citation: Section 39-22-537.5, C.R.S.
A nonrefundable credit was allowed for tax years commencing prior to January 1, 2025, to a taxpayer who bought the right to use a motor vehicle registration number selected for auction by the Colorado Disability Funding Committee because it was likely to be worth substantially more than the average value of a registration number.
Applicable tax years: 2013 through 2024
Maximum carryforward period: Five years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Statutory citation: Section 39-22-535, C.R.S.
A refundable income tax credit is allowed to full-year resident and part-year resident individuals who pay child or dependent care expenses. Residents can claim the credit only if their adjusted gross income does not exceed the applicable limit for the tax year. The credit is generally a percentage of the federal credit for child and dependent care expenses allowed to the individual for the tax year. In the case of a part-year resident, the credit is prorated based on the proportion of their modified adjusted gross income that was realized during the part of the year that they were a Colorado resident.
Applicable tax years: 1996 and later
Required forms: DR 0104CR and DR 0347
Additional guidance: Income Tax Topics: Child and Dependent Care Credit
Statutory citation: Section 39-22-119, C.R.S.
A nonrefundable credit is allowed to a taxpayer who operates a licensed child care center, family child care home, or foster care home and who invests in qualified tangible personal property to be used in licensed child care center, family child care home, or foster care home. The credit is equal to 20% of the annual investment in qualified depreciable tangible personal property.
Applicable tax years: 1992 through 2028
Maximum carryforward period: Three years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Required documentation: Copy of child care facility license and list of qualified depreciable tangible personal property
Statutory citation: Section 39-22-517(1), C.R.S.
A nonrefundable credit is allowed to a taxpayer who makes a monetary contribution to a qualifying child care facility or program in Colorado. The credit is equal to 50% of the total contribution but may not exceed $100,000 for any single tax year.
Applicable tax years: 1999 through 2037
Maximum carryforward period: Five years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Required documentation: DR 1317 prepared by the qualifying child care facility or program
Additional guidance: Income Tax Topics: Child Care Contribution Credit
Statutory citation: Section 39-22-121, C.R.S.
A refundable income tax credit is allowed to full-year resident and part-year individuals who have an eligible child under the age of 6. Residents can claim the credit only if their adjusted gross income does not exceed the applicable limit for the tax year. For tax years 2024 and later, the credit is a fixed amount for each qualifying child, depending on the taxpayer’s adjusted gross income. In the case of a part-year resident, the credit is prorated based on the proportion of their modified adjusted gross income that was realized during the part of the year that they were a Colorado resident.
Applicable tax years: 2022 and later
Required forms: DR 0104CR and DR 0104CN
Additional guidance: Income Tax Topics: Child Tax Credit
Statutory citation: Section 39-22-129, C.R.S.
House Bill 23-1260 authorizes the creation of CHIPS Zones in Colorado and allows approved semiconductor manufacturers located within a designated CHIPS Zone to claim certain Enterprise Zone credits. Additionally, taxpayers engaged in semiconductor or advanced manufacturing industries may apply to the Economic Development Commission (EDC) for approval to receive refunds for 80% of any allowable Colorado Job Growth Incentive Credit and certain Enterprise Zone credits.
Applicable tax years: 2024 through 2035
Required forms: DR 1366 and DR 1370
Additional guidance: CHIPS Zones Program and CHIPS Refundable Tax Credit Program
Statutory citation: Sections 24-46-108 and 39-36-101, et seq., C.R.S.
A refundable income tax credit may be allowed to eligible taxpayers who use clean hydrogen to reduce emissions in hard-to-decarbonize sectors, such as industry, aviation, and heavy-duty transportation. Subject to certain limits, the credit is allowed for each kilogram of clean hydrogen used for a qualified use that results in a tier one or tier two greenhouse gas emissions rate. Credit applications are received and evaluated by the Colorado Energy Office and the credit is allowed only after the Energy Office has approved the application and issued a credit certificate to the eligible taxpayer.
Applicable tax years: 2024 through 2032
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Clean Hydrogen Tax Credit
Statutory citation: Section 39-22-557, C.R.S.
A nonrefundable income tax credit is allowed to a C corporation that purchased the credit from Colorado Department of Treasury or from an independent third party the Department of Treasury contracts to conduct or consult on the bidding process for the credits.
Applicable tax years: 2026 through 2028
Maximum carryforward period: Up to tax year 2033
Required forms: DR 0112
Additional guidance: Colorado Deferred Tax Credit Program
Statutory citation: Section 24-36-504, C.R.S.
A refundable income tax credit is allowed to full-year and part-year resident individuals who are allowed a federal earned income tax credit. The credit can also be claimed by those full-year and part-year resident individuals who cannot claim the federal credit because they are under age 25 or because they, their spouse, or their dependents do not have a work-eligible Social Security number. The Colorado credit is a percentage of the allowable federal credit, depending on the tax year. In the case of a part-year resident, the credit is prorated based on the proportion of their modified adjusted gross income that was realized during the part of the year that they were a Colorado resident.
Applicable tax years: 2015 and later
Required forms: DR 0104CR and possibly DR 0104TN
Additional guidance: Income Tax Topics: Earned Income Tax Credit
Statutory citation: Section 39-22-123.5, C.R.S.
A refundable income tax credit is allowed to a production company that makes at least $100,000 in actual qualified local expenditures and employs a workforce for any production activity in Colorado made up of at least 50% Colorado residents. Credits are reserved with, and certified by, the Colorado Office of Film, Television and Media after review and approval of an application submitted by the production company.
Applicable tax years: 2024 through 2031
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Colorado Film Incentive
Statutory citation: Section 39-22-559, C.R.S.
A nonrefundable income tax credit is allowed to any taxpayer doing business in Colorado who receives certification from the Colorado Economic Development Commission (EDC) for a project that creates qualified job growth over a credit period not to exceed 96 months. If the allowable credit exceeds the tax otherwise due, the excess credit can be carried forward up to ten years.
Applicable tax years: 2009 through 2034
Maximum carryforward period: 10 years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Additional guidance: Job Growth Incentive Tax Credit
Statutory citation: Section 39-22-531, C.R.S.
A nonrefundable income tax credit is allowed to individuals, trusts, and estates that are allowed a federal credit for prior year minimum tax. The Colorado credit is equal to 12% of the federal credit allowed for the same tax year. If the allowable credit exceeds the tax otherwise due, the excess credit cannot be carried forward to another tax year.
Applicable tax years: 1988 and later
Maximum carryforward period: No credit carryforward allowed
Required forms: DR 0104CR or DR 0105 (Schedule G)
Additional guidance: Income Tax Topics: Colorado Minimum Tax Credit
Statutory citation: Section 39-22-105(3), C.R.S.
A refundable income tax credit is allowed to eligible students attending Colorado public institutions of higher education who qualify for in-state Colorado tuition. Students must meet several additional requirements explained on the website of the Department of Higher Education. Students may claim the credit only if they received a certificate from the institution they attended confirming their eligibility for the credit and stating the amount of credit.
Applicable tax years: 2025 through 2032
Required forms: DR 0104CR
Additional guidance: Colorado Promise
Statutory citation: Section 39-22-570, C.R.S.
A nonrefundable income tax credit was allowed to Colorado employers for 20% of the annual investment they made to provide eligible services to their employees who received public assistance pursuant to the Colorado Works Program. The credit could not be claimed for more than two years with respect to each employee. If the allowable credit exceeds the tax otherwise due, the excess credit can be carried forward up to three years.
Applicable tax years: 1998 through 2024
Maximum carryforward period: Three years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Statutory citation: Section 39-22-521, C.R.S.
A refundable income tax credit is allowed to members of the Community Food Consortium for small food retailers and Colorado-owned and Colorado-operated farms. The allowable credit is a percentage of the eligible amount spent by the member on pallet, pallet break, distribution, and delivery fees. A separate refundable income tax credit is allowed to small food retailers, small family farms, and, for tax years commencing on or after January 1, 2027, qualified distributors, that purchase small food business recovery and resilience grant program equipment. The allowable credit is a percentage of the eligible purchase price for qualifying equipment. Both credits are certified by the Colorado Department of Agriculture after review and approval of an application submitted by the taxpayer.
Applicable tax years: 2024 through 2030
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Community Food Access Program
Statutory citation: Section 39-22-549, C.R.S.
A refundable income tax credit is allowed to a taxpayer, tax-exempt entity, or political subdivision of the state that has a contractual or real property interest in an existing or planned building, structure, or facility. The building, structure, or facility must be constructed, rehabilitated, converted, remodeled, or otherwise improved through the completion of an eligible capital improvement project in Colorado. Eligible projects must support creative industries and creative industry workers and be within a creative district, a historic district, or a neighborhood commercial center or on a main street. Eligible projects can apply for tax credits of up to $3 million crediting up to 25% of the total eligible expenses of a project. Credits are reserved with, and certified by, the Colorado Office of Economic Development and International Trade (OEDIT) after review and approval of an application submitted by the taxpayer, tax-exempt entity, or political subdivision of the state. The credit is subject to recapture if the building, structure, or facility that is the subject of an eligible project is not being used as an eligible project in any of the fifteen following tax years.
Applicable tax years: 2026 through 2032
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Colorado Community Revitalization Tax Credit
Statutory citation: Section 39-22-569, C.R.S.
An income tax credit is allowed for the donation of a perpetual conservation easement in gross on real property located in Colorado. The credit is allowed for a percentage of the donated value of the conservation easement, depending on the year of the donation. A donor who is allowed the credit may transfer all or a portion of the credit to a transferee for such transferee to apply as a credit against their Colorado income tax. For certain tax years, the donor may also elect to receive a refund for part of the credit. The credit is allowed only if it has been certified by the Department of Regulatory Agencies (DORA).
Applicable tax years: 2000 through 2036
Maximum carryforward period: 20 years
Required forms: DR 1305 and possibly DR 1305E, DR 1305F, and DR 1305G
Required documentation: Tax credit certificate from DORA
Additional guidance: Income Tax Topics: Conservation Easement Credit and Division of Conservation
Statutory citation: Section 39-22-522, C.R.S.
A nonrefundable income tax credit is allowed to a resident individual, trust, or estate for income tax accrued to another state, the District of Columbia, or a territory or possession of the United States, subject to certain limitations.
Required forms: DR 0104CR or DR 0105 (Schedule G)
Additional guidance: Income Tax Topics: Credit for Tax Paid to Another State
Statutory citation: Section 39-22-108, C.R.S.
A nonrefundable credit, not to exceed $1,000, was allowed to C corporations that donated crops or livestock to certain charitable organizations for use in Colorado. The credit was equal to 25% of the contribution valued at wholesale market price or the most recent sale price. If the allowable credit exceeds the tax otherwise due, the excess credit can be carried forward up to five years.
Applicable tax years: 1982 to 2022
Maximum carryforward period: Five years
Required forms: DR 0112CR
Statutory citation: Section 39-22-301(3), C.R.S.
A refundable income tax credit is allowed to full-year Colorado residents who are disabled and unable to engage in any substantial gainful activity for medical reasons. The credit amount is based on the qualifying individual’s adjusted gross income. The income brackets and income limit are adjusted annually for inflation. Individuals whose adjusted gross income exceeds the maximum amount cannot claim the credit.
Applicable tax years: 2025 and later
Required forms: DR 0104EZ or DR 0104 and DR 0104CR
Additional guidance: Disability Assistance Credit
Statutory citation: Section 39-31-104.5, C.R.S.
A nonrefundable income tax credit is allowed to a qualifying trust that is a resident of both Colorado and another state in lieu of the credit for income tax paid to another state. The credit is not available to a trust that became a Colorado resident trust prior to May 26, 2006.
Applicable tax years: 2006 and later
Maximum carryforward period: No carryforward allowed
Required forms: DR 0105 (Schedule G)
Statutory citation: Section 39-22-108.5, C.R.S.
A refundable income tax credit was allowed to qualifying individuals who held an early childhood professional credential issued by the Department of Early Childhood. The credit was allowed only to individuals whose federal adjusted gross income did not exceed applicable limits. The early childhood educator had to be either the licensee of an eligible program or employed by an eligible program for at least six months of the tax year.The credit was a fixed amount that increased annually for inflation based on the credential level the individual holds.
Applicable tax years: 2022 through 2025
Required forms: DR 0104CR and DR 1703
Additional guidance: Income Tax Topics: Early Childhood Educator Credit
Statutory citation: Section 39-22-547, C.R.S.
A refundable income tax credit is allowed to a qualified retailer for all retail sales of new qualified electric bicycles sold in Colorado during the tax year to a qualified purchaser. The qualified retailer must provide a discount to the qualified purchaser, who must be a Colorado resident individual who had not previously purchased a discounted, credit-eligible, electric bicycle in the same calendar year. The allowable credit and required discount varies by tax year.
Applicable tax years: 2024 through 2032
Required forms: DR 0619 and DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Income Tax Topics: Electric Bicycle Credit
Statutory citation: Section 39-22-555, C.R.S.
A refundable income tax credit is allowed to a qualified retailer for all retail sales of new, electric-powered lawn equipment sold in Colorado during the tax year. The qualified retailer must provide a discount to the purchaser. The credit and required discount are 33% and 30%, respectively, of the aggregate purchase price of the qualifying electric-powered lawn equipment.
Applicable tax years: 2024 through 2029
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Income Tax Topics: Electric-Powered Lawn Equipment Credit
Statutory citation: Section 39-22-550, C.R.S.
A refundable income tax credit is allowed to a qualified business for 50% of the cost of converting the business to an employee-owned business model, subject to certain limitations. Credits are reserved with, and certified by, the Colorado Office of Economic Development and International Trade (OEDIT) after review and approval of an application submitted by the qualified business.
Applicable tax years: 2022 through 2031
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Employee Ownership Tax Credit to Establish or to Expand
Statutory citation: Section 39-22-542, C.R.S.
A refundable income tax credit is allowed to employee-owned businesses that have been employee-owned for seven or fewer years. The tax credit is limited to $50,000 and is allowed for up to 50% of eligible costs incurred as a result of being a new employee-owned business, under guidelines issued by the Office of Economic Development and International Trade (OEDIT). Eligible costs may include costs associated with accounting, legal, business advisory, and similar professional services. Credits are certified by OEDIT after review and approval of an application submitted by the taxpayer.
Applicable tax years: 2025 through 2029
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Employee Ownership Tax Credit to Strengthen and to Thrive
Statutory citation: Section 39-22-542.5, C.R
A nonrefundable income tax credit is allowed to employers who make monetary contributions to their employees’ qualifying home savings accounts. The credit is equal to 5% of the amount of the employer contribution but cannot exceed $5,000 for any one employee or a total credit of more than $500,000 for any tax year.
Applicable tax years: 2024 through 2026
Maximum carryforward period: Five years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Additional guidance: Income Tax Topics: Employer Contributions to Home Savings Accounts
Statutory citation: Section 39-22-558, C.R.S.
A nonrefundable income tax credit is allowed to employers who provide child care facilities for the benefit of their employees. The credit is equal to 10% of the employer’s investment during the tax year in qualified tangible personal property to be used in the operation of the child care facility. The facility must be incidental to the employer’s business and must be licensed pursuant to section 26-6-905 or 26.5-5-309, C.R.S.
Applicable tax years: 1992 through 2028
Maximum carryforward period: Three years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Statutory citation: Section 39-22-517(2), C.R.S.
A nonrefundable income tax credit is allowed to an employer who contributes to an employee’s 529 qualified state tuition program account with CollegeInvest. The allowable credit is equal to 20% of the contribution(s) made by the employer during the tax year but cannot exceed $500 for each employee.
Applicable tax years: 2019 through 2031
Maximum carryforward period: Three years
Required forms: DR 0289 and DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Additional guidance: Income Tax Topics: 529 Employer Contribution Credit
Statutory citation: Section 39-22-539, C.R.S.
A nonrefundable income tax credit was allowed to an employer who incurred qualifying expenses relating to the paid leave of absence of an employee for the purpose of organ donation. The credit was allowed for 35% of qualifying expenses either for paying the employee during their leave of absence or for the cost of temporary replacement help, if any, during an employee’s leave of absence. The credit was not allowed with respect to any employee who the taxpayer pays wages of $80,000 or more during the income tax year. If the allowable credit exceeds the tax otherwise due, the excess credit can be carried forward up to five years.
Applicable tax years: 2020 through 2024
Maximum carryforward period: Five years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Statutory citation: Section 39-22-540, C.R.S.
A nonrefundable income tax credit is allowed to an employer who operates a business facility within an enterprise zone and whose business adds value to the manufacturing or processing of agricultural commodities. The credit is $500 for each additional employee at the business facility, averaged over the course of the year, in excess of the highest average number of employees at the facility in any prior tax year. This credit is in addition to the enterprise zone business facility new employee credit.
Applicable tax years: 1987 and later
Maximum carryforward period: Five years
Required forms: DR 1366
Additional guidance: Part 3 of the Enterprise Zone Tax Guide and Enterprise Zone New Employee Tax Credit
Statutory citation: Section 39-30-105.1(3)(a), C.R.S.
A nonrefundable income tax credit is allowed to an employer who operates a business facility within an enterprise zone. The credit is equal to $1,100 for each additional employee at the business facility, averaged over the course of the year, in excess of the highest average number of employees at the facility in any prior tax year.
Applicable tax years: 1986 and later
Maximum carryforward period: Five years
Required forms: DR 1366
Additional guidance: Part 3 of the Enterprise Zone Tax Guide and Enterprise Zone New Employee Tax Credit
Statutory citation: Section 39-30-105.1(1)(a), C.R.S.
A nonrefundable income tax credit may be allowed to a taxpayer who makes a qualified investment in a commercial truck, truck tractor, tractor, or semitrailer and any parts for such vehicle purchased at the same time. The truck, tractor, or trailer must be licensed and registered in Colorado and must be predominantly housed and based at the taxpayer’s business trucking facility located within an enterprise zone for the 12-month period following its purchase. The credit is limited to 1.5% of the qualified investment and is subject to available funding in the commercial vehicle enterprise tax fund.
Applicable tax years: 2011 through 2027
Maximum carryforward period: See Part 2 of the Enterprise Zone Tax Guide
Required forms: DR 1366
Additional guidance: Part 2 of the Enterprise Zone Tax Guide and Enterprise Zone Commercial Vehicle Investment Tax Credit
Statutory citation: Section 39-30-104(1)(b), C.R.S.
A nonrefundable credit is allowed to a taxpayer who makes monetary or in-kind contributions to an enterprise zone administrator or certified program for the purpose of implementing the economic development plan of the enterprise zone. The credit is generally equal to 25% of the value of the contribution, but is limited to $100,000 for contributions made during the tax year. Additional limitations apply with respect to the credit allowed for in-kind contributions.
Applicable tax years: 1989 and later
Maximum carryforward period: Five years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Additional guidance: Income Tax Topics: Enterprise Zone Contribution Credit and Enterprise Zone Contribution Tax Credit
Statutory citation: Section 39-30-103.5, C.R.S.
A nonrefundable income tax credit is allowed to an employer who operates a business facility within an enterprise zone and who provides a health insurance plan or program to their employees. The credit is allowed for any two of the first 10 full tax years that the employer operates the business facility in the enterprise zone and is equal to $1,000 for each insured employee, averaged over the course of the year. To be eligible for the credit, the employer must contribute at least 50% of the total cost of the health insurance plan or program. The plan or program must comply with certain requirements prescribed by law. For tax years beginning on or after January 1, 2027, the credit is not allowed to any taxpayer that has 50 or more business facility employees at any time during the tax year.
Applicable tax years: 1987 and later
Maximum carryforward period: Five years
Required forms: DR 1366
Additional guidance: Part 3 of the Enterprise Zone Tax Guide and Enterprise Zone New Employee Tax Credit
Statutory citation: Section 39-30-105.1(1)(b) C.R.S.
A nonrefundable income tax credit is allowed to an employer who operates a business facility within an enhanced rural enterprise zone and whose business adds value to the manufacturing or processing of agricultural commodities. The credit is equal to $500 for each additional employee at the business facility, averaged over the course of the year, in excess of the highest average number of employees at the facility in any prior tax year. The credit is in addition to the enterprise zone business facility new employee credit, the enterprise zone agricultural processing new employee credit, and the enterprise zone enhanced rural new employee credit.
Applicable tax years: 2003 and later
Maximum carryforward period: Seven years
Required forms: DR 1366
Additional guidance: Part 3 of the Enterprise Zone Tax Guide and Enterprise Zone New Employee Tax Credit
Statutory citation: Section 39-30-105.1(3)(b), C.R.S.
A nonrefundable income tax credit is allowed to an employer who operates a business facility within an enhanced rural enterprise zone. The credit is equal to $2,000 for each additional employee at the business facility, averaged over the course of the year, in excess of the highest average number of employees at the facility in any prior tax year. The credit is in addition to the enterprise zone business facility new employee credit.
Applicable tax years: 2003 and later
Maximum carryforward period: Five years
Required forms: DR 1366
Additional guidance: Part 3 of the Enterprise Zone Tax Guide and Enterprise Zone New Employee Tax Credit
Statutory citation: Section 39-30-105.1(1)(a)(II), C.R.S.
A nonrefundable income tax credit is allowed to a taxpayer who makes a qualified investment in section 38 property that is used solely and exclusively in an enterprise zone for at least one year. The credit is equal to 3% of the total qualified investment made during the tax year. The credit and the use thereof are subject to various limitations and restrictions prescribed by state statute and by the Internal Revenue Code as it existed immediately prior to the enactment of the federal Revenue Reconciliation Act of 1990.
Applicable tax years: 1986 and later
Maximum carryforward period: See Part 2 of the Enterprise Zone Tax Guide
Required forms: DR 1366
Additional guidance: Part 2 of the Enterprise Zone Tax Guide and Enterprise Zone New Employee Tax Credit
Statutory citation: Section 39-30-104, C.R.S.
A nonrefundable income tax credit is allowed to a taxpayer who invests in a qualified job training program for employees who work predominantly within an enterprise zone. The credit is equal to 12% of the qualified investment. Qualified investments may include investments in real property and capital equipment, as well as other expenses that meet the applicable requirements.
Applicable tax years: 1997 and later
Maximum carryforward period: See Part 2 of the Enterprise Zone Tax Guide
Required forms: DR 1366
Additional guidance: Part 4 of the Enterprise Zone Tax Guide and Enterprise Zone New Employee Tax Credit
Statutory citation: Section 39-30-104(4), C.R.S.
A nonrefundable income tax credit is allowed to a taxpayer who makes expenditures in research and experimental activities conducted in an enterprise zone for the purpose of carrying out a trade or business. The credit is equal to 3% of the amount by which the taxpayer’s research and experimental expenditures in an enterprise zone exceed the average of the taxpayer’s research and experimental expenditures in the same enterprise zone over the two preceding tax years. The credit is divided evenly over four tax years, with 25% of the credit allowed for the tax year in which the expenditures were made and 25% of the credit allowed for each of the following three tax years.
Applicable tax years: 1989 and later
Maximum carryforward period: No limit on carryforward period
Required forms: DR 1366
Additional guidance: Part 5 of the Enterprise Zone Tax Guide and Enterprise Zone Research and Development Tax Credit
Statutory citation: Section 39-30-105.5, C.R.S.
A nonrefundable income tax credit is allowed to the owner or tenant of a qualified building in an enterprise zone who makes qualified expenditures for the purpose of rehabilitating the building for commercial use. The building must be at least 20 years old and have been unoccupied for at least two years. The credit is equal to 25% of the cost of rehabilitating the building and is limited to $50,000 per building. A taxpayer who is allowed a federal rehabilitation credit pursuant to sections 38, 46, and 47 of the Internal Revenue Code cannot claim the vacant building rehabilitation credit for the same rehabilitation expenditures.
Applicable tax years: 1989 and later
Maximum carryforward period: Five years
Required forms: DR 1366
Additional guidance: Part 6 of the Enterprise Zone Tax Guide and Enterprise Zone Vacant Commercial Building Rehabilitation Tax Credit
Statutory citation: Section 39-30-105.6, C.R.S
A refundable income tax credit is allowed for certain tax years to full-year resident and part-year individuals who have an eligible child under the age of 17. Residents can claim the credit only if their adjusted gross income does not exceed the applicable limit for the tax year. In the case of a part-year resident, the credit is prorated based on the proportion of their modified adjusted gross income that was realized during the part of the year that they were a Colorado resident. Availability of the credit for tax years 2025 and later depends on the applicable revenue forecast.
Applicable tax years: 2024 and 2025; and 2027 through 2033, subject to availability
Required forms: DR 0104CR and DR 0104CN
Additional guidance: Income Tax Topics: Family Affordability Tax Credit
Statutory citation: Section 39-22-130, C.R.S.
A refundable income tax credit is allowed to a globally recognized film festival that relocates to Colorado and to existing or small Colorado film festivals. The credit is allowed for qualified expenditures paid in connection with the film festival taking place in Colorado. Credits are reserved with, and certified by, the Colorado Office of Economic Development and International Trade (OEDIT) after review and approval of an application submitted by the film festival.
Applicable tax years: 2026 through 2036
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Film Festival Tax Credit
Statutory citation: Section 39-22-571, C.R.S.
A refundable income tax credit is allowed to eligible businesses that use freight rail lines that might otherwise close down due to decreased coal production. The business must be engaged in manufacturing, agriculture, repairing or refurbishing, recycling, distribution centers for consumer products, or energy production with a regular demand for substantial new or expanded rail freight transportation. The credit is equal to 75% of the qualified expenditures paid by the business for certified freight rail use but cannot exceed the amount of credit reserved for the business. Credits are reserved with, and certified by, the Colorado Office of Economic Development and International Trade (OEDIT) after review and approval of an application submitted by the taxpayer.
Applicable tax years: 2026 through 2038
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Freight Rail Tax Credit
Statutory citation: Section 39-22-563, C.R.S.
A refundable income tax credit is allowed to an eligible business, tax-exempt entity, political subdivision of the state, or tribal government that makes a qualified expenditure in connection with an approved geothermal energy project in Colorado. The project must be intended to evaluate and develop a geothermal resource for the purpose of electricity production and meets standards developed by the Colorado Energy Office. The credit is allowed for up to 30% of the qualified expenditures or up to 50% of the qualified expenditures with the approval of the Colorado Energy Office. Credits are reserved with, and certified by, the Colorado Energy Office after review and approval of an application submitted by the eligible business, tax-exempt organization, political subdivision of the state, or tribal government.
Applicable tax years: 2024 through 2032
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Colorado Geothermal Energy Tax Credit Offering
Statutory citation: Section 39-22-552, C.R.S.
A refundable income tax credit is allowed to an eligible business, tax-exempt entity, political subdivision of the state, or tribal government that produces geothermal electricity. The credit is allowed for each kilowatt hour of geothermal electricity produced, at a per-kilowatt-hour rate determined by the Colorado Energy Office. Credits are reserved with, and certified by, the Colorado Energy Office after review and approval of an application submitted by the eligible business, tax-exempt organization, political subdivision of the state, or tribal government.
Applicable tax years: 2024 through 2032
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Colorado Geothermal Energy Tax Credit Offering
Statutory citation: Section 39-22-553, C.R.S.
A refundable income tax credit is allowed to a contractor that is registered with the Colorado Energy Office for the installation of heat pump technology. The registered contractor must provide a discount from the amount charged for the installation of qualifying heat pump technology, in an amount determined by the Colorado Energy Office. Qualifying heat pump technology includes air-source heat pump system, ground-source heat pump system, water-source heat pump system, variable refrigerant flow heat pump system, any combination of these systems, or a heat pump water heater. The credit amount is prescribed by statute, based on the type of technology and the tax year, and may be modified by the Colorado Energy Office.
Applicable tax years: 2024 through 2032
Required forms: DR 1322 and DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Colorado Heat Pump Tax Credits
Statutory citation: Section 39-22-554, C.R.S
A nonrefundable income tax credit was allowed to taxpayers for the preservation and rehabilitation of a qualified historic property that meets certain historic preservation criteria. The credit was 20% of qualified rehabilitation costs, up to a maximum $50,000 credit per qualified property. If the allowable credit exceeds the tax otherwise due, the excess credit can be carried forward up to ten years.
Applicable tax years: 1991 through 2019
Maximum carryforward period: Ten years
Required forms: DR 0104CR, DR 0105 (Schedule G), or DR 0112CR
Statutory citation: Section 39-22-514, C.R.S
A nonrefundable credit is allowed to a taxpayer who makes a monetary or in-kind contribution to an approved nonprofit organization or project. The credit is equal to 25% of the total contribution (or 30% for contributions made to approved organizations and projects in underserved, rural counties) but may not exceed $100,000 for any single tax year.
Applicable tax years: 2023 through 2030
Maximum carryforward period: Five years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Additional guidance: Colorado Homeless Contribution Income Tax Credit
Statutory citation: Section 39-22-548, C.R.S.
A refundable income tax credit was allowed for tax years 2022 and 2024 to full-year and part-year residents age 65 or older. Taxpayers could claim the credit only if they did not claim a property tax exemption under section 39-3-203, C.R.S., for the tax year and their federal adjusted gross income did not exceed the applicable limit.
Applicable tax years: 2022 and 2024
Required forms: DR 0104CR
Additional guidance: Income Tax Topics: Income-Qualified Senior Housing Tax Credit
Statutory citation: Section 39-22-544, C.R.S.
A refundable income tax credit is allowed to the owner of a qualified industrial facility who completes an industrial study or places into service certified greenhouse gas emissions reduction improvements. For industrial studies, the allowable credit is up to 30% of the approved costs for the study but cannot exceed $1 million. For qualifying improvements, the credit is allowed for up to 30% of the qualified expenditures or up to 50% of the qualified expenditures with the approval of the Colorado Energy Office, but the credit may not exceed $8 million. Credits are reserved with, and certified by, the Colorado Energy Office after review and approval of an application submitted by the owner of the qualified industrial facility. The credit is subject to recapture if the owner fails to demonstrate use of the greenhouse gas emissions reduction improvements in any of the three following tax years.
Applicable tax years: 2024 through 2032
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Colorado Industrial Tax Credit Offering
Statutory citation: Section 39-22-551, C.R.S.
A refundable income tax credit is allowed to a taxpayer, tax-exempt entity, or political subdivision of the state for the purchase or lease of a qualifying electric or plug-in hybrid electric motor vehicle that is titled and registered in Colorado. Vehicles must meet several additional requirements to qualify for the credit. A purchaser or lessee of a qualifying motor vehicle can assign the credit to the financing entity or motor vehicle dealer in exchange for qualifying compensation.
Applicable tax years: 2012 through 2028
Required forms: DR 0617, DR 0618, and/or DR 0619
Additional guidance: Income Tax Topics: Innovative Motor Vehicle Credit
Statutory citation: Section 39-22-516.7, C.R.S.
A refundable income tax credit is allowed to a taxpayer, tax-exempt entity, or political subdivision of the state for the purchase or lease of a qualifying electric or plug-in hybrid electric truck that is titled and registered in Colorado or registered under the International Registration Plan and base plated in Colorado. Trucks must meet several additional requirements to qualify for the credit. A purchaser or lessee of a qualifying truck can assign the credit to the financing entity or motor vehicle dealer in exchange for qualifying compensation.
Applicable tax years: 2014 through 2032
Required forms: DR 0617, DR 0618, and/or DR 0619
Additional guidance: Income Tax Topics: Innovative Truck Credit
Statutory citation: Section 39-22-516.8, C.R.S.
A nonrefundable income tax credit is allowed to Colorado residents who purchase or pay premiums on a long-term care insurance policy and meet certain taxable income requirements. The credit is equal to 25% of the amount paid for the insurance during the year and is limited to $150 per policy.
Applicable tax years: 2000 and later
Maximum carryforward period: No carryforward allowed
Required forms: DR 0104CR
Required documentation: Year-end statement showing policy premium payments made during the tax year
Additional guidance: Income Tax Topics: Long-Term Care Insurance Credit
Statutory citation: Section 39-22-122, C.R.S.
A refundable income tax credit is allowed for tax years 2025 and earlier to qualifying resident individuals who incur expenses for the care of a dependent child under the age of 13. The credit is allowed only to individuals whose federal adjusted gross income is $25,000 or less and who cannot claim the federal child care credit or the regular Colorado child care expenses credit because they have no federal income tax liability. The credit is 25% of the resident individual’s child care expenses, but cannot exceed $500 for a single dependent or $1,000 for two or more dependents. In the case of a part-year resident, the credit is prorated based on the proportion of their modified adjusted gross income that was realized during the part of the year that they were a Colorado resident.
Applicable tax years: 2014 to 2025
Required forms: DR 0104CR and DR 0347
Additional guidance: Income Tax Topics: Low-Income Child Care Expenses Credit
Statutory citation: Section 39-22-119.5, C.R.S.
A nonrefundable income tax credit is allowed to a qualified taxpayer who owns a direct or indirect interest in a qualified middle-income housing development located in Colorado. The credit is allowed in an amount determined by the Colorado Housing and Finance Authority (CHFA) and may be claimed by the taxpayer over a five-year credit period. The credit is subject to recapture if the taxpayer's qualified basis in the development decreases.
Applicable tax years: 2025 through 2033
Maximum carryforward period: Three years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Additional guidance: CHFA State Housing Tax Credits
Statutory citation: Section 39-22-5401, et seq., C.R.S
A refundable credit is allowed to a qualified taxpayer that employs an apprentice in a new and emerging industry for at least six months during the tax year. The credit is equal to up to $6,300 per apprentice for six months of employment, plus up to $1,050 for each additional month of employment, for a maximum of $12,600 per apprentice per income tax year. The credit may not be claimed for more than 10 apprentices per tax year, for the same apprentice for more than two consecutive tax years, or for any apprentice for months during which the taxpayer did not pay the apprentice any wage. Credit cannot be claimed for any apprentice for which Colorado Job Growth Incentive Tax Credit, Enterprise Zone Business Employees Credit, or Rural Jump-Start Zone New Business Income Credit is claimed. Credits are reserved with, and certified by, the Colorado State Apprenticeship Agency after review and approval of an application submitted by the qualified taxpayer.
Applicable tax years: 2025 through 2034
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Apprenticeship Tax Credits
Statutory citation: Section 39-22-562, C.R.S.
A nonrefundable income tax credit was allowed to a C corporation that made a qualified investment in section 38 property. The credit was equal to 10% of the total federal credit for qualified investment as determined under Section 46(c) of the Internal Revenue Code in qualified property as defined in section 38 of the Internal Revenue Code as such sections existed prior to the Revenue Reconciliation Act of 1990. The allowable credit was limited to $1,000 and was reduced by the amount of the old investment tax credit claimed for the same tax year.
Applicable tax years: 1988 through 2022
Maximum carryforward period: Three years
Required forms: DR 0112CR
Statutory citation: Section 39-22-507.6, C.R.
A refundable income tax credit is allowed to a common carrier engaged in the transportation of freight on a qualified rail line, as determined by the Colorado Department of Transportation (CDOT). The credit is allowed for up to 75% of the direct operating and capital improvement expenditures incurred by the common carrier that are necessary to maintain or improve a qualified rail line. Credits are reserved with, and certified by, CDOT after review and approval of an application submitted by the common carrier. The credit is subject to recapture if the qualified rail line is not in good operating condition or the common carrier fails to meet one or more of the required service criteria for passenger operations in any of the three following tax years.
Applicable tax years: 2027 through 2037
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Statutory citation: Section 39-22-564, C.R.S.
A nonrefundable income tax credit was allowed to a C corporation that qualified for a federal investment credit determined under section 46 of the Internal Revenue Code. The credit was equal to 10% of the current-year federal investment credit determined with respect to property which was used in Colorado. The credit that could be used in a given year is limited to the first $5,000 of tax liability plus 25% of the tax in excess of $5,000.
Applicable tax years: 1979 through 2022
Maximum carryforward period: Seven years
Required forms: DR 0112CR
Statutory citation: Section 39-22-507.5, C.R.S.
A refundable income tax credit is allowed to a taxpayer, tax-exempt entity, or political subdivision of the state that makes a qualified investment to establish or expand training in a qualified industry. Qualifying investments must be made to acquire, construct, reconstruct, or erect a qualified asset, including land in Colorado, buildings in Colorado, and depreciable equipment. Credits are reserved with, and certified by, the Colorado Office of Economic Development and International Trade (OEDIT) after review and approval of an application submitted by the taxpayer, tax-exempt entity, or political subdivision. The credit is subject to recapture if the equipment, building, structure, or facility that was deemed a qualified asset is not being used as a qualified asset in any of the fifteen following tax years.
Applicable tax years: 2026 through 2032
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Opportunity Now Tax Credits
Statutory citation: Section 39-22-565, C.R.S.
A nonrefundable credit was allowed to a resident individual who made qualifying expenditures for new plastic recycling technology in Colorado. The credit was equal to 20% of the first $10,000 of net expenditures to third parties for rent, wages, supplies, consumable tools, equipment, test inventory, and utilities made by the taxpayer for new plastic recycling technology in Colorado.
Applicable tax years: 1989 through 2022
Maximum carryforward period: Five years
Required forms: DR 0104CR
Statutory citation: Section 39-22-114.5, C.R.S.
An income tax credit is allowed to an owner of a qualified historic structure who incurs qualified rehabilitation expenditures for the structure. The credit is a percentage of the qualified rehabilitation expenditures incurred by the owner, which varies depending on multiple factors and is subject to certain limitations. The credit is subject to approval and certification by the Colorado Office of Economic Development and International Trade, History Colorado, or a certified local government. Credits for qualified commercial structures may be transferred by the owner to another taxpayer, but credits for qualified residential structures cannot. The credit is nonrefundable, except that a qualified applicant can claim a refund for a credit for a qualified residential structure placed in service in a tax year commencing on or after January 1, 2027.
Applicable tax years: 2016 through 2036
Maximum carryforward period: Ten years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Required documentation: Certificate from OEDIT, History Colorado, or certified local government
Additional guidance: Commercial Historic Preservation Tax Credit (OEDIT) and Preservation Tax Credits (History Colorado)
Statutory citation: Section 39-22-514.5, C.R.S.
A refundable income tax credit is allowed to a resident individual who is a qualified child care worker or qualified direct care worker. Resident individuals can claim the credit only if their adjusted gross income does not exceed $75,000 if filing as a single filer or $100,000 if filing a joint return. The credit is $1,200 for each qualifying individual who is a full year resident. In the case of a part-year resident, the credit is prorated based on the proportion of their modified adjusted gross income that was realized during the part of the year that they were a Colorado resident.
Applicable tax years: 2025 through 2028
Required forms: DR 1217 and DR 0104CR
Additional guidance: Income Tax Topics: Qualified Care Worker Credit
Statutory citation: Section 39-22-566, C.R.S.
A refundable income tax credit is allowed to a commercial bank, depository institution, private lending fund, or other entity that makes commercial loans to organizations in the quantum industry. Lenders must file an application with the Colorado Office of Economic Development and International Trade (OEDIT) to register a loan for eligibility for the credit. If the lender incurs a loss associated with a registered loan, they may apply to OEDIT for a tax credit certificate. Credit applications are evaluated by OEDIT and the credit is allowed only after OEDIT has approved the application and issued a credit certificate to the lender.
Applicable tax years: 2026 through 2045
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Colorado Quantum Fund (CQF) for Innovative Lending
Statutory citation: Section 39-22-568, C.R.S.
A refundable income tax credit is allowed to a consortium, nonprofit or for-profit entity that makes qualifying investments in qualifying fixed capital assets to create a shared quantum facility. Credits are reserved with, and certified by, the Colorado Office of Economic Development and International Trade (OEDIT) after review and approval of an application submitted by the consortium, nonprofit or for-profit entity. The credit is subject to recapture if the consortium, nonprofit or for-profit entity sells, transfers, abandons, or repurposes a substantial portion of the qualifying fixed capital assets for which the credit was allowed, or otherwise ceases to operate the shared quantum facility, in any of the fifteen following tax years.
Applicable tax years: 2026 through 2032
Required forms: DR 0104CR, DR 0105, DR 0106CR, DR 0112, or DR 0990
Additional guidance: Colorado Quantum Fund (CQF) for Shared Facilities
Statutory citation: Section 39-22-567, C.R.S.
A nonrefundable, transferable income tax credit is allowed to a taxpayer for any approved environmental remediation of contaminated property the taxpayer owns in Colorado. A similar transferable expense amount, that may be transferred to a taxpayer for use as a credit, is allowed to a private nonprofit entity or local government for any approved environmental remediation of contaminated property they own in Colorado. The credit and transferable expense amount are a portion of the approved remediation expenditures and are subject to approval and certification by the Department of Public Health and Environment (CDPHE).
Applicable tax years: 2014 through 2029
Maximum carryforward period: Five years
Required forms: DR 0349 and possibly DR 0348P and DR 0348T
Required documentation: Tax credit certificate from CDPHE
Additional guidance: Income Tax Topics: Remediation of Contaminated Land Credit
Statutory citation: Section 39-22-526, C.R.S.
A nonrefundable income tax credit is allowed to the owner of the qualifying residential energy storage system, who purchases the system and installs it, or has it installed, in a residential building in Colorado and retains ownership of the system after installation. The credit is allowed for 10% of the purchase price of the qualifying system. The system owner may elect to assign the credit to the seller (i.e., the contractor, manufacturer, or distributor) from whom the system owner purchased the residential energy storage system. Any credit that has been assigned to the seller is refundable.
Applicable tax years: 2023 through 2029
Required forms: DR 1307 and DR 0104CR, DR 0105, DR 0106CR, DR 0112
Statutory citation: Section 39-22-546, C.R.S
A nonrefundable income tax credit is allowed to a qualified individual who retrofits or hires someone to retrofit the qualified individual’s residence and who meets any additional requirements established by the Division of Housing, which certifies the credit. Income limits apply in determining eligibility for the credit. The credit is allowed for the cost of the retrofit, but is limited to $5,000 per residence. Only one credit is allowed per residence, except that if a retrofit is required for the qualified individual and for one or more dependents residing in the qualified individual’s residence or a retrofit is required for more than one dependent residing in the qualified individual’s residence, then a credit of up to $5,000 is allowed per individual for whom the retrofit is required.
Applicable tax years: 2019 through 2028
Maximum carryforward period: Eight years
Required forms: DR 0104CR
Required documentation: Tax certificate from the Division of Housing
Additional guidance: Home Modification Tax Credit
Statutory citation: Section 39-22-541, C.R.S.
A nonrefundable income tax credit is allowed to a taxpayer who provides primary health care in a rural or frontier area and who provides one or more qualifying preceptorships. The preceptorship must last a total of not less than four working weeks or 20 business days during the tax year and must be certified by the institution for which the preceptor teaches or the regional Area Health Education Center (AHEC) office. The number of preceptors who may claim the credit for any given tax year is limited by statute.
Applicable tax years: 2017 through 2032
Maximum carryforward period: Five years
Required forms: DR 0366 and DR 0104CR
Additional guidance: Form DR 0366 and its instructions
Statutory citation: Section 39-22-538, C.R.S.
A nonrefundable income tax credit is allowed to a new business that is located in a rural jump-start zone and has received approval from the Economic Development Commission (EDC). Both the new business and the rural jump-start zone must satisfy a variety of requirements established by law and in guidelines prescribed by the EDC. Among other things, the rural jump-start zone must be in an economically distressed county that meets certain requirements and the new business must start in the zone or move into the zone from outside of Colorado. With the annual approval of the EDC, the credit is equal to 100% of the Colorado income taxes imposed on the new business on the income derived from its activities in the rural jump-start zone and is allowed for four consecutive tax years, unless an extension for additional tax years is granted by the EDC.
Applicable tax years: 2016 through 2030
Maximum carryforward period: No carryforward allowed
Required forms: DR 0113 and DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Required documentation: Tax certificate from the Office of Economic Development
Additional guidance: Rural Jump-Start Program
Statutory citation: Section 39-30.5-105(1), C.R.S.
A nonrefundable income tax credit is allowed to a new hire employed by a new business that is located in a rural jump-start zone and has received approval from the Economic Development Commission (EDC). Both the new business and the rural jump-start zone must satisfy a variety of requirements established by law and in guidelines prescribed by the EDC. Among other things, the rural jump-start zone must be in an economically distressed county that meets certain requirements and the new business must start in the zone or move into the zone from outside of Colorado. With the annual approval of the EDC, the credit is equal to 100% of the new hire’s wages paid by the new business for work performed in the rural jump-start zone and is allowed for four consecutive tax years, unless an extension for additional tax years is granted by the EDC.
Applicable tax years: 2016 through 2030
Maximum carryforward period: No carryforward allowed
Required forms: DR 0113 and DR 0104CR
Required documentation: Tax certificate from the Office of Economic Development
Additional guidance: Rural Jump-Start Program
Statutory citation: Section 39-30.5-105(2), C.R.S.
A refundable income tax credit is allowed to a partner or shareholder of a partnership or S corporation that makes a SALT Parity Act election. The credit is allowed for the partner’s or shareholder’s share of the tax imposed on, and paid by, the partnership or S corporation that makes the election.
Applicable tax years: 2018 and later
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Required documentation: Colorado K-1 (DR 0106K)
Additional guidance: Income Tax Topics: SALT Parity Act
Statutory citation: Section 39-22-347, C.R.S.
A nonrefundable income tax credit was allowed to a taxpayer who made a qualified investment in a qualified school-to-career program. The program had to integrate school curriculum with job training, encourage placement of students in jobs or internships that would teach them new skills and improve their school performance, and be approved by an appropriate authority under the statute. The credit was equal to 10% of the moneys directly expended for wages, workers’ compensation insurance, unemployment insurance, and training expenses to employ a student to work or to allow a student to participate in an internship through the program.
Applicable tax years: 1997 through 2024
Maximum carryforward period: Five years
Required forms: DR 0104CR, DR 0105 (Schedule G), DR 0106CR, or DR 0112CR
Statutory citation: Section 39-22-520, C.R.S
With the approval of the Economic Development Commission (EDC) between July 1, 2017, and June 30, 2020, a business that makes a strategic capital investment is afforded special treatment for the following credits that the business is allowed: the Colorado Job Growth Incentive Credit, the Enterprise Zone Investment Tax Credit, any Enterprise Zone New Employee Credits, and the Enterprise Zone Research And Experimental Activities Credit. This special treatment is allowed only if the EDC finds that the strategic capital investment, totaling not less than $100,000,000, will be significant to the state and is expected to be productive over many years. A business that has received EDC approval may elect to use the credits to offset tax, carry forward the credits for no more than five years, or transfer the credits during the carryforward period to one or more transferees for the transferees to claim against their income tax liabilities.
Maximum carryforward period: Five years
Required forms: DR 1330 and DR 0104, DR 0105, DR 0106CR, or DR 0112
Statutory citation: Section 24-46-104.3, C.R.S.
A refundable income tax credit is allowed to an aviation business, a sustainable aviation fuel producer, or an airport that constructs, reconstructs, or erects, and places into service, a sustainable aviation fuel facility in Colorado. The credit is a percentage of the actual cost paid for the construction, reconstruction, or erection of the facility, depending on the tax year. Credits are certified by the Colorado Energy Office review and approval of an application submitted by the taxpayer. The credit is subject to recapture if the sustainable aviation fuel production of the facility comprises less than 60% of the total fuel production of the facility in any of the three following tax years.
Applicable tax years: 2024 through 2026
Required forms: DR 0104CR, DR 0105, DR 0106CR, or DR 0112
Additional guidance: Aviation Emission Reduction Offering
Statutory citation: Section 39-22-556, C.R.S.
Depending on state revenue, a refundable income tax credit may be allowed to qualifying resident individuals. The credit amounts vary from year to year and may depend on the qualifying individual’s adjusted gross income.
Applicable tax years: 2021 through 2025
Required forms: DR 0104
Additional guidance: Income Tax Topics: State Sales Tax Refund
Statutory citation: Section 39-22-2003, C.R.S.
An income tax credit is allowed to landowners who incur actual out-of-pocket expenses for wildfire mitigation measures on their property in Colorado. The credit is nonrefundable for tax years 2023 through 2026 and refundable for tax years 2027 and later. The credit is allowed only to taxpayers whose federal taxable income falls below the applicable limit for the tax year. The credit is a percentage of the qualifying expenses, subject to the applicable limit, depending on the tax year.
Applicable tax years: 2023 through 2030
Maximum carryforward period: No carryforward allowed
Required forms: DR 0104CR
Required documentation: Copies of receipts documenting expenses
Additional guidance: Income Tax Topics: Wildfire Mitigations Measures
Statutory citation: Section 39-22-543, C.R.S.