This credit is available as a carryforward only to those who have claimed the credit during tax years ending on or
after March 30, 2001 and beginning prior to January 1, 2005. The credit is generated by any taxpayer that makes a
qualified capital investment in technology infrastructure in Rural Technology Enterprise Zones may claim an income
tax credit of 10% of the total investment made during the year. [§39-32-105, C.R.S.]
RURAL TECHNOLOGY ENTERPRISE ZONES
The Colorado Public Utilities Commission (PUC) established boundaries for the Rural Technology Enterprise Zone in
rural areas of Colorado to promote the development of the infrastructure needed to promote Internet access in these
rural areas. Beginning on March 30, 2001, taxpayers were able to begin investing in technology infrastructure in
order to earn this tax credit.
QUALIFIED CAPITAL INVESTMENT
The PUC established a list of specific capital improvements that need to be made in the Rural Technology Enterprise
Zones that will qualify for the income tax credit. A copy of the PUC certification form must be attached to the income
tax return to substantiate the credit being claimed.
● The credit claimed shall not exceed $100,000 per year. Qualified investments in excess of $1 million in any
tax year cannot earn a credit and cannot be carried forward.
● A partnership or S corporation may pass through up to $100,000 in total credit to its partners/shareholders.
Each partner/shareholder’s portion of the credit is determined according to the ratio in which they divide the
general profits/losses of the entity.
● If the credit exceeds the tax liability for the year, the excess credits may be carried forward for up to 10