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INSTRUCTIONS FOR FORM 106 CR

IN GENERAL. Colorado credits may be passed through

Credit for 25% of contributions to enterprise zone

from partnerships, and S corporations to the partners, or

administrators to further the economic development

shareholders. Normally the potential credit is passed

plans of the zone is allowed to all taxpayers.

through and it is up to the partner or shareholder to

A credit of 3% of the increase in a qualified enterprise

determine his or her own limitations.

zone research and experimental expenditures is

Some credits may be claimed only by individuals, estates

available to all taxpayers. See FYI Income 22.

or trusts where others may be claimed only by C

Corporations. And there are credits that may be claimed

An historical property preservation credit is available

by any taxpayer. Lost credits may not be redistributed to

for all taxpayers. See FYI Income 1.

other partners or shareholders. For example, if a

partnership consisted of a C corporation and an individual,

A credit based on the cost of a clean burning alternative

the individual partner’s share of the partnership’s new

fuel option or conversion for vehicles is available for all

investment tax credit could not be claimed by the

taxpayers. See FYI Income 9.

corporation even though the individual partner is not

allowed to use it.

A credit is available for qualifying contributions made

to promote child care in Colorado. See FYI Income 35.

CREDIT FOR TAX PAID OTHER STATES.

Colorado resident S corporation shareholders may claim

A 20% investment credit is available for all taxpayers

credit for their share of any net income tax paid to another

for investment in certain tangible personal property

state by the corporation when the other state does not

used in child-care centers or family care homes;

recognize the S corporation election. Complete a

and a 10% investment credit is available for property

separate Form 106 CR for each state to which tax was

used in employee child-care facilities.

See FYI

paid. Advise each Colorado resident shareholder of his or

Income 7.

her share of the corporate income from sources in the

other state and his or her share of the tax paid.

A 10% investment credit is available for all taxpayers for

investment in a qualified school-to-career program. See

THE OLD INVESTMENT TAX CREDIT is 10% of the

FYI Income 32.

tentative current year federal internal revenue code

section 46 credit on assets located in Colorado and may

The enterprise zone job training credit is 10% of the

be claimed only by C corporations (this would apply in

total current year investment in a qualified job training

the case of a partnership with a C corporation partner.)

program. See FYI Income 31.

See FYI Income 11.

A credit for the rehabilitation of a vacant commercial

THE NEW INVESTMENT TAX CREDIT is basically 1% of

building in an enterprise zone is available to all taxpayers.

the qualified investment in tangible personal property

See FYI Income 24.

used in a trade or business in Colorado. This credit may be

claimed only by C corporations. See FYI Income 11.

A 50% credit is available for the construction,

reconstruction or acquisition of an alternative fuel

THE ENTERPRISE ZONE INVESTMENT CREDIT is

refueling facility. See FYI Income 9.

basically 3% of the qualified investment in tangible

personal property used in a trade or business in a

The Colorado works program credit is 20% of an

Colorado enterprise zone. It may be claimed by all

employer's expenditures to employ recipients of public

taxpayers. See FYI Income 11.

assistance. See FYI Income 34.

THE ENTERPRISE ZONE NEW BUSINESS FACILITY

EMPLOYEE CREDIT is a credit of $500 for each new job

A credit is available for donations of Colorado

created with respect to a qualified enterprise zone new

conservation easements. See FYI Income 39.

business facility. An additional $500 credit is allowed with

respect to agricultural processing employees and an

A credit is available for expenditures made to redevelop

additional $200 for employees provided health care

contaminated land in Colorado. See FYI Income 42.

coverage. An additional $2000 credit for each new

employee and an additional $500 credit for each new

A credit is available for owners of qualified low-income

agricultural processing employee is available for

housing developments. See FYI Income 46.

businesses located in certain rural enterprise zones.

These credits may be claimed by all taxpayers. See FYI

The Aircraft Manufacturer Employee Credit is avail-

Income 10.

able to qualified taxpayers. See FYI Income 62.

Instructions For Form 106 Cr - Colorado Pass-Through Entity Credit - Colorado Department Of Revenue

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