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Code of Colorado Regulations eDocket
Details of Tracking Number
2021-00163
CCR details
| Tracking Number |
2021-00163 |
| Type of Filing |
Permanent Rule |
| Department |
200 Department of Revenue |
| Agency |
201 Taxation Division |
| CCR Number |
1 CCR 201-13 |
| CCR Title |
ENTERPRISE ZONE REGULATIONS |
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Proposed rule
| Notice Filed with SOS |
03/12/2021 |
| Rule |
ProposedRuleAttach2021-00163.doc
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| Additional Information |
AddInfoAttach2021-00163.doc
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| Statutory Authority |
The statutory bases for this rule are sections 39-21-112(1), 39-30-103(7)(a), 39-30-104, 39-30-108(1), 39-22-507.5, and 39-22-507.6, C.R.S. |
| Description of Subjects/Issues |
The purpose of the amendment to this rule is to update the application of the enterprise zone investment tax credit. The amendment repeals the entirety of the current rule because the content is outdated or redundant with statute. The new content:
• Clarifies that a taxpayer cannot claim the credit for property that the taxpayer does not actually claim a depreciation expense for federal income tax purposes consistent with Ball Corporation v. Fisher, 51 P.3rd 1053 (Colo. 2001).
• Clarifies that the total combined amount of credit a taxpayer can claim to offset tax and receive a refund for a tax year is limited to $750,000, except that any credits carried forward from tax years commencing prior to January 1, 2014 are not subject to this limit.
• Clarifies that a taxpayer cannot claim the credit allowed by section 39-30-104, C.R.S., and the credit set forth in section 39-22-507.5, C.R.S., for the same property. However, there is no similar statutory language in sections 39-30-104, C.R.S., or 39-22-507.6, C.R.S., that prohibits a taxpayer from claiming both of those credits for the same property.
• Addresses the tax consequence of qualified property not used solely and exclusively in an enterprise zone for at least one year.
• Clarifies that no credit is allowed for property acquired or purchased by the taxpayer prior to submitting the required pre-certification form to the enterprise zone administrator. |
| Purpose/Objective of Rule |
The purpose of the amendment to this rule is to update the application of the enterprise zone investment tax credit. The amendment repeals the entirety of the current rule because the content is outdated or redundant with statute. The new content:
• Clarifies that a taxpayer cannot claim the credit for property that the taxpayer does not actually claim a depreciation expense for federal income tax purposes consistent with Ball Corporation v. Fisher, 51 P.3rd 1053 (Colo. 2001).
• Clarifies that the total combined amount of credit a taxpayer can claim to offset tax and receive a refund for a tax year is limited to $750,000, except that any credits carried forward from tax years commencing prior to January 1, 2014 are not subject to this limit.
• Clarifies that a taxpayer cannot claim the credit allowed by section 39-30-104, C.R.S., and the credit set forth in section 39-22-507.5, C.R.S., for the same property. However, there is no similar statutory language in sections 39-30-104, C.R.S., or 39-22-507.6, C.R.S., that prohibits a taxpayer from claiming both of those credits for the same property.
• Addresses the tax consequence of qualified property not used solely and exclusively in an enterprise zone for at least one year.
• Clarifies that no credit is allowed for property acquired or purchased by the taxpayer prior to submitting the required pre-certification form to the enterprise zone administrator. |
| Basis And Purpose |
BasisAndPurposeAttachment2021-00163.doc
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| Comments |
This hearing will be conducted virtually. The call-in information is:
Call in: 1-669-900-6833
Meeting ID: 816-6409-1352.
If you would like to join via video conference, please email dor_taxrules@state.co.us for the link. |
| Submitted in response to issues raised by COLS/OLLS? |
No
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| Is this rule adopted in response to recent legislation? |
No
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| Hearing Date |
04/22/2021 |
| Hearing Time |
10:00 AM |
| Hearing Location |
Virtual Hearing (see below) |
| Contact Name |
Erika Hoxeng |
| Contact Title |
Tax Policy Analyst |
| Contact Telephone |
303-866-4805 |
| Contact email |
erika.hoxeng@state.co.us |
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Adopted rule
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