The Colorado Department of Revenue, Division of Taxation, is seeking input from stakeholders regarding drafts of the enterprise zone rules listed below. The Department previously shared drafts of these rules on October 15, 2020. We have made minor revisions to a few of these drafts and more substantial additions to the draft of Rule 39-30-105.6.
- Rule 39-30-104. Enterprise Zone Investment Tax Credit. - The purpose of the amendment to this rule is to update the rule regarding the application of the enterprise zone investment tax credit.
- Rule 39-30-105. Enterprise Zone New Business Facility Employee Credits. - The purpose of this amendment to the rule is to repeal the rule because section 39-30-105, C.R.S. was repealed effective December 31, 2019.
- Rule 39-30-105.1. Enterprise Zone Business Facility Employee Credits. - The purpose of this new rule is to clarify the calculation of enterprise zone business facility employee credits.
- Rule 39-30-105.6. Credit for Rehabilitation of Vacant Buildings. - The purpose of this new rule is to clarify (1) the meaning of the term “building” for the purpose of the credit; (2) requirements for the credit related to vacancy, commercial use, and pre-certification; and (3) the application of the limitation on the amount of the credit allowed..
- Rule 39-30-106. Enterprise Zone Machinery and Machine Tools Sales Tax Exemption. - The purpose of this new rule is to clarify the expansion of the definition of “manufacturing” for machinery and machine tools used exclusively in an enterprise zone to include only those activities related directly to the extraction of natural resources, including oil and gas.
- Rule 39-35-104. Aircraft Manufacturer New Employee Income Tax Credit. - The purpose of the amendment to this rule is to update the rule regarding the calculation of the aircraft manufacturer new employee income tax credit.
We do not plan to convene a stakeholder work group for these rules prior to formal rulemaking unless comments indicate one is necessary. In lieu of a workgroup, we would greatly appreciate written feedback on the draft rules. Please submit comments on the draft rules by emailing your comments to firstname.lastname@example.org. Written comments will be accepted through January 15, 2021.
After evaluating the comments we receive, the Department will determine whether the draft rules should move forward and, if so, whether further revisions to the rules are necessary. If the Department moves forward with the proposed rules, additional comments will be accepted following a notice of proposed rulemaking. Thank you in advance for your input.
We would appreciate your feedback to help us measure and improve the success of the rulemaking program. If you participate in the rulemaking process, we invite you to complete a short survey. Follow the link, and choose the "I participated in the Rulemaking Process (Announcement, Stakeholder Meeting, or Hearing)" option.