For income tax years ending on or after March 30, 2001 and beginning prior to January 1, 2005 any taxpayer that makes a qualified capital investment in technology infrastructure in Rural Technology Enterprise Zones may claim an income tax credit of 10 percent of the total investment made during the year. [C.R.S.39-32-105]
Rural Technology Enterprise Zones
The Colorado Public Utilities Commission (PUC) has 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. For more information, contact the Colorado PUC at (303) 894-2000, or at www.dora.state.co.us/puc/
Qualified Capital Investment
The PUC has 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 will have to 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/shareholders 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 ten years.