If you conducted business or earned income in Colorado, you may be subject to Colorado state taxes. If this applies to you, please find below the details regarding the R&D tax credit application, key tax deadlines, and extension information for 2024.
In Colorado, businesses aiming to claim the Research & Development tax credit must complete and receive approval for an application.
The deadlines for filing the Research and Development credits are aligned with the state's income tax filing deadlines for different business entities.
In Colorado, you may:
File your taxes online with DORi - Colorado Department of Revenue Online
When filing by mail, ensure that your documents are postmarked by the due date.
Federal filing is not required.
Amendments are allowed up to 3-years from the original date of filing.
Application Information
The Enterprise Zone Research and Development Tax Credit helps businesses invest in research and development. Colorado's R&D tax credit program requires the filing and approval of an application to claim the credit.
Colorado's application for certification has a continuous rolling deadline.
Here is how you can apply
Here is how you can apply
Find out if you are located in an enterprise zone.
To use this map, type in your address in the top left-hand corner. You may need to scroll out to identify whether or not you are located within an enterprise zone.
If your location is highlighted in a color, you are located in an enterprise zone. If your location is in a checkered colored area, it is located in an enhanced rural enterprise zone.
Eligible Businesses
Both new and existing businesses located in enterprise zones may qualify.
For businesses that open in the middle of a tax year, you will need to prorate the credit based on the number of full calendar months during the year that the business operated in the zone.
Businesses need to be legal under both state and federal law.
For example, businesses in the marijuana industry do not qualify for this tax credit.
You need to be in the same enterprise zone for three years to claim this credit.
If your company moves to a different enterprise zone, the three-year window starts over, and you cannot claim this credit until your company has been in the new zone for three years.
Once you determine that your business is in an enterprise zone, there are three steps to claim this tax credit.
Once you determine that your business is in an enterprise zone, there are three steps to claim this tax credit.
Complete the pre-certification application on the OEDIT application portal
You will need to pre-certify each business location. You will need to apply for pre-certification in advance of the activity that is eligible for the credit.
Log in to your account or create a new account.
To protect your personal information, we manually add new users to the portal, so it may take several days to activate your account.
Pre-certify each year.
Pre-certify up to 3 months before the start of the business’ tax year.
Or you can pre-certify at any time during the tax year. However, the business is only eligible to earn enterprise zone tax credits for the period certified.
The local enterprise zone administrator will review and approve your pre-certification application.
Complete the certification application on the OEDIT application portal
Log in to your account and fill out the certification application.
Activity conducted during the covered pre-certification period is eligible for enterprise zone tax credits.
The local enterprise zone administrator will review and approve your certification application.
File Colorado income taxes and include certification documents.
Once the certification application is approved by the local enterprise zone administrator, you will receive via email a tax credit certificate that you need to submit with your Colorado income tax return. You can also access the certificate in the OEDIT application portal.
This certificate replaces Colorado Department of Revenue forms DR0074, DR0076, and DR0077.
Complete and submit the Colorado Department of Revenue form DR1366 and the EZ Tax Credit Certificates with your Colorado income tax return.
Partnerships need to also complete and submit the DR0078a for distribution of the credits.
How to Amend or Transfer your Enterprise Zone Record
How to Amend or Transfer your Enterprise Zone Record
Amending your Enterprise Zone Record
If you misreported or need to modify your enterprise zone certification application, you can amend or reset your certification by submitting the amendment form.
To amend or submit certification applications for years 2014 or earlier (formatted YY-XXXXXX) use the Legacy Application System
Transfer Ownership of your Enterprise Zone Record
If your business changed accounting firms, you will need to transfer your pre-certification and certification records. A business owner or authorized company official will need to submit the transfer form.
Overview, Eligibility, Limitations, and Allocation Cap
Overview, Eligibility, Limitations, and Allocation Cap
Enterprise Zone Research and Development Tax Credit
Businesses can earn a state income tax credit for 3% of the increase in annual research and development expenses compared to what the business spent the prior two years.
Eligible Entities
C-Corporations, S-Corporations, LLCs, Partnerships
Credit Carryforward
If your business’ tax liability is less than the tax credit, your business may carry forward the remaining amount to subsequent tax years.
There is no limit on the number of years your business may carry forward this credit.
Credits cannot be carried back to prior tax years.
Credit Limitations
Credit is limited to 25% of the amount of the credit in the year that it is filed. The remaining 75% of the credit can be claimed in 25% increments over the next 3 years but can be carried indefinitely should liability not exceed credit.
The research credit is not refundable.
S-Corporation / Partnership
You must file in Colorado by April 18, 2025.
Applicable R&D Forms
Form DR-1366 – Enterprise Zone Credit and Carryforward Schedule
File the above form with the following tax forms:
Form DR-0106 – Partnership and S Corporation Income Tax Return
Form DR-0106K – Colorado K-1 for Partnerships and S-Corporations
For amended returns, use with the following tax forms:
Form DR-0106 – Partnership and S Corporation Income Tax Return
Be sure to check the box next to the fiscal year information to indicate that you are filing an amended return.
Extension to File Taxes in Colorado for 2024
Taxes owed in Colorado for the tax year 2024 must be paid by April 18, 2025.
No separate extension filing is required in Colorado.
Colorado automatically grants a 6-month extension for both S-Corporation and Partnership tax returns.
S-Corporation: the extension deadline is October 15, 2025.
Partership: the extension deadline is October 15, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still due by April 18, 2025.
You must pay at least 90% of your tax liability by the original due date of your return and the remainder by the filing extension due date to avoid delinquent payment penalties.
C-Corporation
You must file in Colorado by April 15, 2025.
Applicable R&D Forms
Form DR-1366 – Enterprise Zone Credit and Carryforward Schedule
File the above form with the following tax forms:
Form DR-0112 – C-Corporation Income Tax Return
For amended returns, use with the following tax forms:
Form DR-0112X – Amended C-Corporation Income Tax Return
Extension to File Taxes in Colorado for 2024
Taxes owed in Colorado for the tax year 2024 must be paid by April 15, 2025.
No separate extension filing is required in Colorado.
Colorado automatically grants a 6-month extension for C-Corporation tax returns.
C-Corporation: the extension deadline is October 15, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still required by April 15, 2025.
You must pay at least 90% of your tax liability by the original due date of your return and the remainder by the filing extension due date to avoid delinquent payment penalties.
Sole-Proprietorship
Sole-Proprietorship
You must file in Colorado by April 15, 2025.
Applicable R&D Forms
Not eligible
These are the tax forms when filing as a sole proprietor
Form DR-0104 – Individual Income Tax Return Filing
Extension to File Taxes in Colorado for 2024
Taxes owed in Colorado for the tax year 2024 must be paid by April 15, 2025.
No separate extension filing is required in Colorado.
Colorado automatically grants a 6-month extension for individual tax returns.
Sole-Proprietorship: the extension deadline is October 15, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still required by April 15, 2025.
References
We strive to ensure the accuracy of the information on this page, but it is not intended as tax or legal advice. Please use your own professional judgment and consult with a tax professional. Any advice you provide in connection with tax return preparation must comply in full with the requirements of IRS Circular 230.