DR 1370: Certified Economic Development Credit Schedule for Taxpayers with a Refund Certificate (2024)
Colorado · Colorado DOR · Used for tax years 2024
Colorado Form DR 1370 is a schedule for claiming OEDIT-certified Enterprise Zone or CHIPS Zone tax credits when the taxpayer has a refund certificate. It reports available credits, amounts applied against current-year tax, and amounts claimed for refund.
Who files this form
Use the 2024 DR 1370 if the Office of Economic Development and International Trade (OEDIT) issued you a refund certificate for Enterprise Zone or CHIPS Zone credits. Complete it to claim refundable credits earned after the certificate was issued, and submit it with your return.
- A partnership or S corporation that received a refund certificate must complete DR 1370 for credits available to its partners or shareholders, including resident and nonresident members.
- Partners and shareholders complete their own DR 1370 to claim their share of credits shown on DR 0106K.
- If you received a credit certificate for CHIPS Zone activity but no refund certificate, use DR 1366 for Enterprise Zone credits or the corresponding credit schedule for the Job Growth Incentive tax credit instead.
What you'll need
Have these documents and details ready, as applicable to your credits:
- Your OEDIT refund certificate and its balance.
- Copies of certification forms generated by the EZ Tax Credit online system. Submit these with your tax return.
- Copies of the credit certificates issued for each credit you claim.
- Your name or business name and Social Security number, ITIN, FEIN, or Colorado Account Number.
- For credits passed through from a partnership or S corporation, your DR 0106K and the entity’s FEIN or Colorado Account Number.
- Investment amounts, employee counts, qualified expenditures, and prior-year amounts needed for the credits you claim.
Use Worksheet 1 for Business Facility New Employee Credits, Worksheet 2 for the Vacant Commercial Building Rehabilitation Credit, and Worksheet 3 for the Research and Experimental Activities Credit. Keep the worksheets for your records; do not send them. For rehabilitation credits involving multiple commercial structures, complete a separate worksheet for each structure and include all credit certificates.
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 electronically.
If you cannot file electronically, include DR 1370 and supporting documentation with your paper return. The Department strongly recommends electronic filing and warns that paper filing may delay processing.
To complete the schedule:
- Enter your identifying information and complete the parts for your credits.
- In Column A, enter the credit available. In Column B, enter the amount applied against current-year tax. In Column C, enter the credit amount you elect to draw against your refund certificate balance.
- Complete Part VI. Transfer line 21 to DR 0106CR, line 15A, as directed. Transfer line 22 to the applicable return or credit schedule line listed on the form.
- Add the applicable Column C amounts on line 23. Multiply that total by 80% on line 24, then transfer the allowable refund to the applicable line listed on the form.
- Submit DR 1370 with your return and required certificate copies.
Common mistakes
- Using current-year credits before carryforwards. Use current-year credit only after all carryforward credit has been exhausted. Use DR 1366 for Enterprise Zone credits carried forward from tax years before the refund certificate was issued.
- Combining different investments on line 7. Renewable energy, commercial vehicle, and job training investments belong on lines 8, 9, and 10, respectively.
- Exceeding the investment credit limit. Column B on line 11 cannot exceed line 6.
- Claiming a refund for building rehabilitation. The Vacant Commercial Building Rehabilitation Credit cannot be refunded and is available only in Enterprise Zones, not CHIPS zones.
- Reporting the Job Growth Incentive credit on other credit schedules. The Part V instructions tell refund-certificate holders to use DR 1370, not line 43 of DR 0104CR, line 13 of DR 0105 Schedule G, line 11 of DR 0106CR, or line 13 of DR 0112CR.
- Sending worksheets. Keep Worksheets 1, 2, and 3 for your records rather than submitting them.
Questions people ask
Will I receive the full credit amount I elect to refund?
No. The credit claimed as a refund is subject to a 20% statutory reduction. Line 23 records the amount deducted from your credit certificate and refund certificate balances. Line 24 calculates the allowable refund at 80% of that amount.
Can I use DR 1370 for Enterprise Zone credits carried forward from before my refund certificate was issued?
Use DR 1366 for those carryforward credits. The instructions also say to exhaust all carryforward credit before using current-year credit.
How are partnership and S corporation credits handled?
The entity completes DR 1370 for credits available to all partners or shareholders. A composite nonresident return may claim included nonresident members’ shares up to their tax, subject to additional limitations. Credits not applied against tax on that return must be allocated on DR 0106K. Members then use their own DR 1370 to claim their shares.
Is there a limit on using the current-year Research and Experimental Activities Credit against tax?
Yes. Column B on line 19 cannot exceed 25% of Column A. The combined amounts in Columns B and C cannot exceed Column A.