In this Capitol Report:
Department of Revenue Seeking Changes to Enterprise Zone Rules
Please be advised that the Colorado Department of Revenue, Division of Taxation, is seeking input from stakeholders regarding several enterprise zone rules. Below are the Division’s proposed new rules and changes to existing rules:
- Rule 39-30-104. Enterprise Zone Investment Tax Credit.– The purpose of the amendment to this rule is to update the rule regarding the application of the enterprise zone investment tax credit.
- Rule 39-30-105. Enterprise Zone New Business Facility Employee Credits.– The purpose of this amendment to the rule is to repeal the rule because section 39-30-105, C.R.S. was repealed effective December 31, 2019.
- Rule 39-30-105.1. Enterprise Zone Business Facility Employee Credits.– The purpose of this new rule is to clarify the calculation of enterprise zone business facility employee credits.
- Rule 39-30-105.6. Credit for Rehabilitation of Vacant Buildings.– The purpose of this new rule is to detail the requirements for the credit related to vacancy, commercial use, and pre-certification.
- Rule 39-30-106. Enterprise Zone Machinery and Machine Tools Sales Tax Exemption.– The purpose of this new rule is to make clear that the definition of “manufacturing” includes only those activities related directly to the extraction of natural resources, including oil and gas.
- Rule 39-35-104. Aircraft Manufacturer New Employee Income Tax Credit.– The purpose of the amendment to this rule is to update the rule regarding the calculation of the aircraft manufacturer new employee income tax credit.
DOR does not plan to convene a stakeholder meeting prior to formal rulemaking unless the comments submitted indicate that it is needed. Comments on the draft rules can be sent to [email protected] and the deadline for comments is November 17, 2020.
After evaluating the comments, the Department will determine whether the draft rules should move forward and, if so, whether further revisions to the rules are necessary. If the Department moves forward with the proposed rules, additional comments will be accepted following a notice of proposed rulemaking.
Please contact Loren Furman at [email protected] with any questions.
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