DR 1366: Enterprise Zone Credit and Carryforward Schedule (2024)
Colorado · Colorado DOR · Used for tax years 2024
Colorado Form DR 1366 is the 2024 Certified Economic Development Credit Schedule for tax credits certified by the Office of Economic Development and International Trade (OEDIT) for business activity in Enterprise Zones or CHIPS Zones. It calculates credits available and used, inc
Who files this form
Use the 2024 DR 1366 to claim credits certified by the Office of Economic Development and International Trade (OEDIT) for business activity in Enterprise Zones or CHIPS Zones, unless the credits were earned after OEDIT issued you a refund certificate.
- If you received a refund certificate, use DR 1370 for refundable credits earned after it was issued. Use DR 1366 for Enterprise Zone credits carried forward from tax years before the certificate was issued.
- Partnerships and S corporations must complete DR 1366 to calculate credits available to pass through to partners or shareholders.
- Partners and shareholders complete their own DR 1366 to claim credits passed through on DR 0106K.
Do not use DR 1366 for the Enterprise Zone Contribution Credit. Claim that credit on your relevant credit schedule.
What you'll need
Have these documents and details ready, as applicable to your credits:
- Copies of certification forms generated by the EZ Tax Credit online system. You must submit these with your tax return.
- Credit certificates for each credit claimed, including the original certificates for refundable renewable energy investment credits carried forward.
- Prior-year carryforward amounts and your current-year tax liability.
- DR 0106K if you are claiming credits passed through by a partnership or S corporation, plus that business's FEIN or Colorado Account Number.
- Investment amounts and employee counts needed for the credits you claim.
- Credit certificates showing qualified commercial building rehabilitation expenditures. Include all certificates if claiming credits for more than one structure.
- Current-year and two preceding years' qualified research expenditures, plus the applicable 2021, 2022 and 2023 credit schedules for research credits from those years.
The form also asks for your name or business name and identifying tax account information.
How to file
Taxpayers claiming Enterprise Zone or CHIPS Zone credits are required to file their returns electronically. Revenue Online can be used to submit your return and attachments.
- Complete the parts of DR 1366 that apply to your credits. Use the worksheets for new employee, vacant commercial building rehabilitation, and current-year research credits.
- Use carryforward credits before current-year credits and apply the limits stated on the form.
- Transfer the totals from lines 25 through 28 to the credit schedule or return lines listed in Part V.
- Submit copies of the required credit certifications with your return.
If you cannot file electronically, include DR 1366 and supporting documentation with your paper return. The Department strongly recommends electronic filing and warns that not filing electronically may delay processing.
Common mistakes
- Using current-year credits first. Use current-year credits only after all carryforward credits have been exhausted.
- Using the wrong form. Do not claim Enterprise Zone Contribution Credits on DR 1366. Use DR 1370 for refundable credits earned after OEDIT issued a refund certificate.
- Leaving out credit certificates. Submit the required certification copies with your return.
- Combining investment categories on line 8. Renewable energy, commercial vehicle and job training investments belong on lines 9, 10 and 11, respectively.
- Exceeding the investment credit limit. The credit used on line 12, Column B, cannot exceed line 7. The form also states a $750,000 combined limit for credit applied toward tax and refundable renewable energy credit, with an exception for credits carried forward from tax years before 2014.
- Using one rehabilitation worksheet for multiple buildings. Complete a separate Worksheet 2 for each commercial structure.
- Mismatching pass-through totals. Credits claimed on a composite nonresident return plus credits allocated on DR 0106K must total the amounts on DR 1366.
Questions people ask
Can I use Revenue Online to file?
Yes. Revenue Online can be used to file your return and attachments electronically. Electronic filing is required for taxpayers claiming Enterprise Zone or CHIPS Zone credits.
What if OEDIT issued me a refund certificate?
Do not use DR 1366 for credits earned after the certificate was issued. Complete DR 1370 to claim refundable credits. Use DR 1366 for Enterprise Zone credits carried forward from tax years before the certificate was issued.
How do I claim credits passed through from a partnership or S corporation?
Complete your own DR 1366 using your share of credits from DR 0106K. Enter the partnership's or S corporation's FEIN or Colorado Account Number on DR 1366.
Can unused investment credits be carried forward?
The form says investment credits that exceed the applicable limits can generally be carried forward to offset tax in later years. Use carryforward credits before current-year credits.
Does each owner get a separate $750,000 refundable renewable energy investment credit cap?
No. The form states that the $750,000 cap applies at the partnership or S corporation level. Combined credits claimed and used by investors, owners and members cannot exceed $750,000 for a tax year.