DR 0106CR: Colorado Pass-Through Entity Credit Schedule (2025)

Who files this form

Partnerships and S corporations use DR 0106CR to report Colorado tax credits, including credits passed through to partners or shareholders and credits applied toward tax on a composite return.

Each partner’s or shareholder’s share of credits must be reported on Colorado K-1, form DR 0106K, except for the portion applied toward tax on a composite return.

Eligibility depends on the credit and the type of partner or shareholder. A credit that is not allowed for one partner or shareholder cannot be redistributed to others.

What you'll need

Have the organization’s legal name and 8-digit Colorado Account Number ready. Both must match the main return, DR 0106, and appear on every page of the schedule.

Attachments depend on the credits claimed. Examples include:

• Child care contribution: DR 1317 from the organization receiving the contribution.
• Child care investment: A facility license and a list of the depreciable tangible personal property used to claim the credit.
• Contaminated land remediation: DR 0348P and the credit certificate. The instructions also require DR 0349 for amounts claimed on a composite return and DR 0348T if part of the credit is transferred.
• Enterprise zone or CHIPS zone: DR 1366 or DR 1370, as applicable, and required certificates.
• Rural Jump-Start: DR 0113 and the credit certificate.
• Strategic capital or employer contributions to employee 529 plans: DR 1330 or DR 0289, respectively.
• Residential energy storage: DR 1307.
• Business personal property: A copy of the property tax statement for property tax paid in 2025.
• Innovative motor vehicle or truck: DR 0617 for each qualifying vehicle, with required documentation.
• SALT Parity Act credit from lower-tier partnerships: Copies of the Colorado K-1 forms reporting the credits.

Several other credits require certificates, including housing, historic preservation, homeless contribution, employee-owned business, film incentive, food accessibility, and certified greenhouse gas avoidance credits. Review the entry for each credit you claim.

Keep adequate books and records showing the amount of each credit and your eligibility. Make those records available to the Department upon request.

How to file

Submit DR 0106CR and the required credit forms, schedules, and supporting documents with the partnership’s or S corporation’s Colorado income tax return.

• Enter the gross available credit in Column A, including the entity’s share of credits from partnerships in which it is a partner.
• If you are not filing a composite return, copy Column A to Column B and enter zero in Column C. This also applies to entities making a SALT Parity Act election that are not filing a composite return.
• If you are filing a composite return, allocate the credit between Column B, for amounts passed through on Colorado K-1 forms, and Column C, for amounts applied toward composite-return tax.
• Total the credits on line 38. Transfer the Column C total to line 14 of DR 0106.

Electronic filing: The text encourages electronic filing for enterprise zone credits and credits from DR 1370 to avoid processing delays. You must file electronically if claiming the Aircraft Modification for Unleaded Fuel Credit for more than one aircraft.

The supplied text does not provide a mailing address or an electronic filing website.

Common mistakes

• Using payments instead of tax liability: On line 4, enter the actual net income tax liability calculated on the other state’s return, not estimated payments or other payments.
• Combining multiple states: Complete lines 2 through 4 separately for each state. Attach additional copies of page 1 for additional states.
• Including certificate numbers in totals: Exclude the certificate numbers on lines 15 and 20 and below line 36 when calculating line 38.
• Claiming ineligible property taxes: The business personal property credit does not cover real property taxes or delinquent prior-year taxes paid in 2025.
• Putting assigned vehicle credits on line 25: If the vehicle credit was assigned to the partnership or S corporation, complete DR 0619 instead.
• Attaching the transportation plan report: The annual employer plan report, DR 1323, must be filed before earning the Alternative Transportation Options Credit, but should not be filed with this return.
• Keeping lower-tier credits after a SALT Parity Act election: An electing entity cannot claim credits reported on lines 16 or 25 of a lower-tier partnership’s Colorado K-1. Pass the full credit through and report each owner’s allocation on line 25 of their Colorado K-1, not line 16.

Questions people ask

Do I use Column C if I am not filing a composite return?

No. Enter zero in Column C and copy the available credit from Column A to Column B.

What happens if a credit exceeds a partner’s or shareholder’s composite payment?

The unused amount passes through to that partner or shareholder and may only be claimed by them. Report the passed-through amount in Column B and on DR 0106K.

Can a Colorado resident owner receive credit for tax the entity paid to another state?

A Colorado resident individual partner or shareholder may claim credit for their share of net income tax imposed on and paid by the partnership or S corporation to another state. This applies even if the entity elected to have that tax imposed on it.

What is the business personal property credit limit for 2025?

The credit an owner may claim, or that the entity may claim for a nonresident owner on a composite return, is limited to tax paid in 2025 on the first $18,000 of actual value of the personal property taxed.

Do I need records even if I submit the required certificates?

Yes. Partnerships and S corporations must keep adequate books and records documenting the amount of, and eligibility for, each credit claimed and provide them to the Department upon request.

Official sources

• https://tax.colorado.gov/sites/tax/files/documents/DR0106CR_2025.pdf