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 resident individuals only. [§39-22-114.5, C.R.S.]
The maximum credit that can be claimed on Colorado Form 104 in any tax year is limited to the net tax liability. Any credit in excess of this amount may be carried forward for up to five years. The credit is not available to C corporations, S corporations, partnerships or other pass through entities. [§39-22-309, C.R.S. ]
CLAIMING THE CREDIT
The credit is claimed on Colorado Form 104CR. Taxpayers claiming the plastic recycling investment tax credit must attach copies of receipts, bills or other documentation of qualified expenses to the tax return when filed. If the return is filed electronically, the required documentation may be scanned and uploaded to Revenue Online using the E-Filer Attachment function, or if unable to do so, mailed separately with form DR 1778.