Request for Public Input – Credit for Taxes Paid to Another State

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The Colorado Department of Revenue, Division of Taxation, is seeking input from the public regarding a draft of the following amended rule. The Department has prepared the following draft to aid in the process of soliciting public comments.

  • Rule 39-22-108Credit for Taxes Paid to Another State. The purpose of the amendments to this rule is to reorganize and revise the existing rule to improve clarity and to provide additional guidance regarding:
    • Credits allowed to a partner or shareholder for taxes paid to another state by a partnership or S corporation;
    • The various elements involved in the calculation of the credit limitations, including gross Colorado tax, modified adjusted federal gross income, and income derived from sources in another state; and 
    • Redeterminations to correct the amount of the credit claimed.

We do not plan to convene a workgroup meeting for this rule prior to formal rulemaking unless comments indicate one is necessary. In lieu of a workgroup, we would greatly appreciate written feedback on the draft rule. Please submit comments on the draft rule by emailing your comments to comments will be accepted through April 7, 2023.

After evaluating the comments we receive, the Department will determine whether the draft rule should move forward and, if so, whether further revisions to the rule are necessary.  If the Department moves forward with the proposed rule, 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 (written comments, workgroup meeting, or hearing)" option.