Colorado R&D Tax Credit Filing instructions
To claim the Research and Development (R&D) tax credit in Colorado, businesses must generally be located within an Enterprise Zone (EZ). The process involves a multi-step approach through the Colorado Office of Economic Development and International Trade (OEDIT) portal. First, businesses must pre-certify their eligible activities annually on the OEDIT application portal, ideally in advance of the tax year or at least within the tax year for which the credit is sought. After the eligible activities have taken place, a certification application must be completed and approved by the local Enterprise Zone Administrator through the same portal. Once the certification is approved, OEDIT will issue a tax credit certificate. This certificate, along with Colorado Department of Revenue Form DR 1366, “Enterprise Zone Credit and Carryforward Schedule,” must then be submitted with your Colorado income tax return. Note that for tax years beginning on or after January 1, 2012, original or amended income tax returns claiming an enterprise zone credit must generally be filed electronically.