39-22-2102 - Colorado Affordable Housing Tax Credit

Basis and Purpose. The bases for this rule are § 39-21-112(1) and § 39-22-2102, C.R.S. The purpose of this rule is to provide clarification for pass-through entities making an allocation of the Colorado affordable housing credit, as well as to establish when the carryforward period begins for the credit.

(1) Allocating the Credit for Pass-Through Entities.

(a) The owner of a qualified development project receiving an allocation of a Colorado affordable housing credit may allocate the credit among its partners, shareholders, members, or other qualified taxpayers in any manner agreed to by such persons. The owner must submit with the Colorado Partnership or S Corporation Return their Colorado State Affordable Housing Tax Credit Allocation Certificate ("Allocation Certificate") along with a schedule detailing how the credit is allocated ("Allocation Schedule"). In addition, the owner shall send to the Department of Revenue the following information:

(i) The name(s) and federal taxpayer identification number(s) of the owner,

(ii) The address of the property for which the credit is received,

(iii) The name and federal taxpayer identification number of the qualified taxpayers who receive an allocation of the credit,

(iv) The total amount of credit allocated to all qualified taxpayers,

(v) The amount of credit each qualified taxpayer received,

(vi) The tax year in which the credit was allocated to each qualified taxpayer and the amount allocated to such qualified taxpayer for each such year, and

(vii) The amount of credit claimable in each year.

(b) Each partner, shareholder, member or other qualified taxpayer must attach a copy of the Allocation Certificate and the Allocation Schedule to their Colorado income tax return. Once the partners, shareholders, members or other qualified taxpayers claim the credits on their respective income tax returns, the allocation cannot be amended for that tax year.

(c) If the qualified taxpayer is a pass-through entity, then, to the extent that the owner's records reflect such information, the owner shall identify by name and federal taxpayer number the qualified taxpayer(s) of such pass-through entity and their taxpayer identification number and beginning credit allowances.

(2) Carryforwards. Any amount of credit not applied to a qualified taxpayer's tax liability may be carried forward up to eleven years from the tax year in which the allocation was made. An allocation is made when the Authority issues the Allocation Certificate to the owner of a qualified development after a qualified development is placed in service. The credit must be applied first to the earliest years possible. Any amount of credit not used during this carryforward period shall not be refunded to the taxpayer.

Notes

39-22-2102

Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/14/2014 37 CR 18, September 25, 2014, effective 10/15/2014 37 CR 19, October 10,2014, effective 10/30/2014 37 CR 22, November 25, 2014, effective 12/16/2014 38 CR 04, February 25, 2015, effective 3/17/2015 38 CR 07, April 10, 2015, effective 4/30/2015 38 CR 11, June 10, 2015, effective 6/30/2015 38 CR 22, November 25, 2015, effective 12/15/2015 38 CR 24, December 25, 2015, effective 1/14/2016 38 CR 24, December 25, 2015, effective 1/19/2016 39 CR 01, January 10, 2016, effective 1/30/2016 39 CR 16, August 25, 2016, effective 9/14/2016 40 CR 08, April 25, 2017, effective 5/15/2017 40 CR 12, June 25, 2017, effective 7/15/2017 40 CR 16, August 25, 2017, effective 9/14/2017 40 CR 23, December 10, 2017, effective 1/1/2018 41 CR 14, July 25, 2018, effective 8/14/2018 41 CR 20, October 25, 2018, effective 11/14/2018 42 CR 02, January 25, 2019, effective 12/18/2018 42 CR 02, January 25, 2019, effective 12/18/2018, expires 4/17/2019 42 CR 06, March 25, 2019, effective 4/14/2019 43 CR 04, February 25, 2020, effective 3/16/2020 43 CR 13, July 10, 2020, effective 6/2/2020 43 CR 17, September 10, 2020, effective 9/30/2020 44 CR 03, February 10, 2021, effective 3/2/2021 44 CR 07, April 10, 2021, effective 4/30/2021 44 CR 08, April 25, 2021, effective 5/15/2021 45 CR 01, January 10, 2022, effective 1/30/2022 45 CR 04, February 25, 2022, effective 3/17/2022 45 CR 05, March 10, 2022, effective 3/30/2022 46 CR 11, June 10, 2023, effective 5/2/2023 46 CR 09, May 10, 2023, effective 5/30/2023