Colorado State Tax Help

What is the purpose of the credit for taxes paid to another state?

This credit is to alleviate double taxation of the same income that has been taxed by Colorado and by another state. If the income in question was taxed only by Colorado, or only by the other state, do not enter it.

Do I qualify for a nonrefundable credit?

See the Colorado Income Tax FYI Publications and Index for details on the following credits:

Plastic Recycling Investment Credit
FYI Income 56

Historic Property Preservation Credit
FYI Income 1

Child Care Investment Credit
FYI Income 7

Employer Child Care Facility Investment Credit
FYI Income 7

School-to-Career Investment Credit
FYI Income 32

Colorado Works Program Credit
FYI Income 34

Colorado Child Care Contribution Credit
FYI Income 35

Rural Technology Enterprise Zone Credit
FYI Income 36

Credit for Remediation of Contaminated Land
FYI Income 42

Alternative Fuel Refueling Facility Credit
FYI Income 9

Aircraft Manufacturer New Employee Credit
FYI Income 62 . Please note that we'll calculate this credit for you. If you qualify for the credit, simply enter the increase in the average number of employees over the previous year.

Job Growth Incentive Credit
FYI Income 66

Certified Auction Group License Fee Credit
Colorado Income Tax Index

Advanced Industry Investment Credit
Colorado Income Tax Index

Alternative Fuel Vehicle Credit
FYI Income 9

Enterprise Zone Administrator Credit
FYI Income 23

What is a Tuition Program Contribution?

You can deduct the payments or contributions you make to certain qualified state tuition programs. You cannot take this deduction if the payments or contributions were not included in your federal taxable income.

See Colorado Income Tax FYI Publication Income 44 for additional details.

What is the Historic Property Preservation Credit?

Colorado offers an income tax credit to Colorado residents and C Corporations for the preservation and rehabilitation of a qualified historic property. The structure must be at least 50 years old and one of the following must be true:
  • The structure is designated individually or as a contributing property in the State Register of Historic Places.
  • The structure is designated as a landmark by a certified local government.
  • The structure is designated as a contributing property in a designated historic district of a certified local government.
If the property on which you want to claim this credit has none of these designations, you must apply for and secure such a designation.

See Colorado Income Tax FYI Publication Income 1 for details on this credit.

What is the Charitable Contributions Subtraction?

If you gave more than $500 in charitable donations during the year, you might be eligible for a Colorado deduction for the contributions over $500. Enter your total qualified contributions here, and we'll calculate your subtraction for you.

Your contributions qualify if all of the following are true:
  • You claimed the federal Standard Deduction instead of Itemized Deductions.
  • You have not already deducted the contributions on your federal return as a business or other deduction.
  • Your contribution qualifies under the federal charitable contribution guidelines.
See Colorado Income Tax FYI Publication Income 48 for additional details.

What is the Alternative Fuel Vehicle Credit?

For tax years 2009 and prior, a credit was available for the purchase of an alternative fuel vehicle, for a motor vehicle that is converted to use alternative fuel, or for the replacement of the power source with a power source that uses alternative fuel. To qualify, the vehicle must have been titled and registered in Colorado.

If you were not able to fully utilize the credit in the year incurred, you were allowed to carry forward the unused portion for up to five years. This credit is no longer available to claim now, but you may claim a credit on the portion of unused carryforward from the credit you claimed during the time period in which it was allowed.

See Colorado Income Tax FYI Publication Income 9 for details on this credit.

What is the Plastic Recycling Investment Credit?

The plastic recycling investment tax credit is 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 for new plastic recycling technology in Colorado. The credit is available to Colorado residents only.

See Colorado Income Tax FYI Publication Income 56 for details on this credit.

What is the Long-Term Care Credit?

An income tax credit is available for Colorado residents who purchase or makes a payment for a long-term care insurance policy. The credit is equal to 25% of the amount paid for the insurance during the year. The amount of the credit claimed may not exceed $150 per policy.

See Colorado Income Tax FYI Publication Income 37 for additional details.

What is the Colorado Capital Gain Subtraction?

You may subtract certain net capital gain income to the extent the gains are included in your federal taxable income. This subtraction is available if you meet specific qualifications.

See Colorado Income Tax FYI Publication Income 15 for additional details.

What is the Child Care Investment Credit?

If you operate a child care center, family child care home, or foster care home and invest in qualified tangible personal property to be used in the operation of such facility, you may claim an investment tax credit equal to 20% of the investment.

See Colorado Income Tax FYI Publication Income 7 for details on this credit.

What is the Employer Child Care Facility Investment Credit?

If you are an employer who provides child care facilities for the benefit of your employees, you can claim an investment tax credit. The tax credit is equal to 10% of your investment during the tax year in qualified tangible personal property to be used in the operation of the child care facility.

See Colorado Income Tax FYI Publication Income 7 for additional details on this credit.

What is the School-to-Career Investment Credit?

You are allowed to claim a credit of 10% of your current year investment in a qualified school-to-career program

Excess credits may be carried forward for a period of five years.

See Colorado Income Tax FYI Publication Income 32 for additional details on this credit.

What is the Colorado Works Program Credit?

If you are an employer, you can claim a credit of 20% of your annual expenditures made to provide eligible services for your employees who receive public assistance pursuant to the "Colorado Works Program." The credit may not be claimed for more than two years with respect to each individual employee.

See Colorado Income Tax FYI Publication Income 34 for details on this credit.

What is the Colorado Child Care Contribution Credit?

If you made a monetary donation to promote child care in Colorado, you may claim an income tax credit of 50% of the total contribution. In-kind contributions of property (non-monetary donations) do not qualify for the credit.

See Colorado Income Tax FYI Publication Income 35 for additional details on this credit. Please note that we will calculate this credit for you. If you qualify for the credit, simply enter the qualifying donations you made.

What is the Credit for Remediation of Contaminated Land?

For any tax year beginning on or after January 1, 2000 but prior to December 31, 2010, an income tax credit was available if you redeveloped contaminated land in Colorado.

If you were not able to fully utilize the credit in the year incurred, you were allowed to carry forward the unused portion for up to five years. This credit is no longer available to claim now, but you may claim a credit on the portion of unused carryforward from the credit you claimed during the time period in which it was allowed.

See Colorado Income Tax FYI Publication Income 42 for details on this credit.

What is the Rural Technology Enterprise Zone Credit Carryforward?

If you made a qualified capital investment in technology infrastructure in Rural Technology Enterprise Zones for income tax years ending on or after March 30, 2001 and beginning prior to January 1, 2005, you could have claimed an income tax credit of 10% of the total investment made during that year.

If you were not able to fully utilize the credit in the year incurred, you were allowed to carry forward the unused portion for up to ten years. This credit is no longer available to claim now, but you may claim a credit on the portion of unused carryforward from the credit you claimed during the time period in which it was allowed.

See Colorado Income Tax FYI Publication Income 36 for details on this credit.

What is the Alternative Fuel Refueling Facility Credit Carryforward?

For tax years beginning prior to January 1, 2011, you could take a credit for constructing, reconstructing, or acquiring an alternative fuel refueling facility that is directly attributable to the storage, compression, charging, or dispensing of alternative fuels to motor vehicles.

If you were not able to fully utilize the credit in the year incurred, you were allowed to carry forward the unused portion for up to five years. This credit is no longer available to claim now, but you may claim a credit on the portion of unused carryforward from the credit you claimed during the time period in which it was allowed.

See the Colorado Income Fax FYI Publication Income 9 for details on this credit.

What is the Aircraft Manufacturer New Employee Credit?

An income tax credit of $1,200 per employee is available to aircraft manufacturers located in a Colorado aviation development zone who hire qualified new aviation zone employees.

See Colorado Income Tax FYI Publication Income 62 for details on this credit. Please note that we will calculate this credit for you. If you qualify for the credit, simply enter the increase in the average number of employees over the previous year.

What are the income limitations for the Long-Term Care Credit?

If your filing status is NOT Married Filing Jointly, your federal taxable income must be less than $50,000 for the year.

If your filing status is Married Filing Jointly, your federal taxable income must be less than $50,000 for the year to claim a credit for one insurance policy, or your federal taxable income must be less than $100,000 for the year to claim a credit for two separate insurance policies.

What is the definition of alternative fuel?

Alternative fuel means ethanol or any mixture of ethanol containing 85% or more ethanol by volume with gasoline or other fuels. Alternative fuel may also include clean diesel and reformulated gasoline so long as the Air Quality Control Commission determines that these other fuels make reductions in carbon monoxide emissions and brown cloud pollutants comparable to the previously mentioned alternative fuels. Alternative fuel does not include any fuel that contains or is treated with methyl tertiary butyl ether.

Can a leased vehicle qualify for this credit?

Yes, lessees of qualifying vehicles are eligible for the Innovative Motor Vehicle Credit.

Please read Colorado Income Tax FYI Publication Income 67 to calculate the amount of credit you can claim.

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