DR 1366: Enterprise Zone Credit and Carryforward Schedule (2025)
Colorado · Colorado DOR · Used for tax years 2025
Colorado Form DR 1366 is the 2025 Certified Economic Development Credit Schedule for credits certified for business activity in Enterprise Zones or CHIPS Zones. It calculates credits available and used, including carryforwards, and credits available to pass through to partners or
Who files this form
Use the 2025 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, if you were not also issued an OEDIT refund certificate.
- If you received a refund certificate, use DR 1370 for refundable credits earned after the certificate was issued. Use DR 1366 to claim 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 applicable credit schedule.
What you'll need
Have the following ready, as applicable to the credits you claim:
- 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.
- Your DR 0106K if you received credits from a partnership or S corporation, plus that entity’s FEIN or Colorado Account Number.
- Prior-year credit amounts and unused carryforwards. For research and experimental activities credits, the form also uses the applicable 2022, 2023, and 2024 credit schedules.
- Investment amounts, employee counts, or qualified expenditures needed for the applicable credit calculations.
For vacant commercial building rehabilitation credits, complete a separate worksheet for each structure and include copies of all credit certificates received.
How to file
Taxpayers claiming Enterprise Zone or CHIPS Zone credits are required to file their returns electronically. Revenue Online can be used to file your return and attachments electronically.
- Complete the parts of DR 1366 that apply to your credits. Use the included worksheets for new employee, vacant commercial building rehabilitation, and current-year research and experimental activities credits.
- Calculate the credit available and the amount used, applying the limits on the form. Use carryforward credits before current-year credits.
- Complete Part V and transfer the totals from lines 25 through 28 to the applicable return or credit schedule lines listed on the form.
- Submit the required credit certification copies with your tax 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 paper filing may delay processing. The supplied text does not give a mailing address.
Common mistakes
- Using current-year credits first. Use all carryforward credit before using current-year credit.
- Using the wrong form. Do not claim the Enterprise Zone Contribution Credit on DR 1366. If you received an OEDIT refund certificate, do not use DR 1366 for credits earned after it was issued.
- Leaving out certificates. Submit the required certification forms and credit certificates 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 investment credit limits. Line 12, Column B cannot exceed line 7. The instructions also state that line 12, Column B plus the amount on line 1 cannot exceed $750,000.
- 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 DR 1366 if I received an OEDIT refund certificate?
Yes, for Enterprise Zone credits carried forward from tax years before the certificate was issued. For refundable credits earned after issuance, use DR 1370 instead.
Can I claim the Enterprise Zone Contribution Credit here?
No. Claim it on your applicable credit schedule, not DR 1366.
Can unused investment credits carry forward?
If an investment credit exceeds the limits described in Part I, the excess can generally be carried forward to apply against tax in later years. Use carryforward credits before current-year credits.
How do partners and shareholders claim their share of credits?
The partnership or S corporation calculates the credits on DR 1366 and allocates credits not used on a composite nonresident return through DR 0106K. Partners and shareholders then complete their own DR 1366 to claim their shares on their own returns.
Does the $750,000 refundable renewable energy investment credit cap apply separately to each owner?
No. The cap applies at the partnership or S corporation level. The combined credits claimed and used by investors, owners, and members cannot exceed $750,000 for a tax year.