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Colorado Rural Technology Enterprise Zone Credit

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Colorado Rural Technology Enterprise Zone Credit

Answer

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.

LIMITATIONS

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

years.

 


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Article Details
Views: 554 Created on: Jun 15, 2013
Date updated: Sep 03, 2015
Posted in: STATES, Colorado

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