Colorado offers a variety of refundable and nonrefundable tax credits. Some credits are entered directly on the return, while others require additional schedules, certificates, approval letters, or documentation from a Colorado agency.
Program Entry
Colorado Return → Credits
The Following Credits Can Be Found
Colorado Family, Education, and Caregiver Credits
Colorado offers the following credits for families, education, and or caregivers.
Child Care Expense Credit Adjustment to Earned Income
Colorado offers a child care expense credit for qualifying taxpayers who paid expenses for the care of a dependent child or disabled dependent. This section is used to adjust the earned income used in the credit calculation. For more information please see our article here.
Early Childhood Educator Tax Credit (Form DR 1703)
If you were an early childhood educator for at least six months during tax year 2025, you might be able to claim a credit based on your credentials. You can claim this credit only if your adjusted gross income does not exceed $75,000 (if you are a single filer) or $150,000 (if you are filing jointly). Please see Department publication Income Tax Topics: Early Childhood Educator Credit for additional information. You must complete and submit form DR 1703 with your return to claim the credit.
Colorado Promise Tuition and Fee Credit
A credit available to eligible students attending a Colorado public institution of higher education whose family income is $90,000 or less. The credit reimburses qualifying out-of-pocket tuition and fee expenses paid for postsecondary education.
To claim the credit, the student must receive a certificate from their school confirming eligibility and the amount of credit available. The credit may be claimed only by the eligible student, even if another person, such as a parent, paid the tuition and fees on the student's behalf.
Qualified Care Worker Credit
Complete form DR 1217, Qualified Care Worker Tax Credit. Submit form DR 1217 with this schedule. Taxpayers who are claiming credits from form DR 1217 are encouraged to file electronically to avoid processing delays.
Disability Assistance Credit
A credit available to qualifying Colorado residents who were disabled for the entire tax year and received full disability benefits from an approved public or private disability program. To qualify, the taxpayer must have been unable to engage in substantial gainful activity for medical reasons throughout the year and meet Colorado's income limitations.
To be eligible:
- You must have been a full-year Colorado resident.
- You must have received full disability benefits for the entire year based solely on your disability.
- Your federal adjusted gross income cannot exceed $20,000 for single filers or $32,000 for joint filers.
- Documentation verifying disability benefits must be provided with the return.
The credit amount ranges from $400 to $1,200, depending on filing status and federal adjusted gross income. Taxpayers receiving benefits from Social Security, SSI, the Department of Human Services, the Veterans Administration, or another qualifying public or private disability plan may be eligible if all requirements are met.
Child Care Contribution Credit
A credit available for qualifying monetary contributions made to an eligible Colorado child care facility or child care program. To qualify, the receiving organization must be either licensed by the appropriate Colorado state agency or registered with the Colorado Department of Revenue.
The credit is generally equal to 50% of the qualifying contribution, subject to Colorado limitations and eligibility requirements. To claim the credit, the taxpayer must submit a Child Care Contribution Tax Credit Certification (Form DR 1317) provided by the organization that received the contribution.
Child Care Center Investment Credit
A credit available to taxpayers who operate a licensed child care center, family child care home, or foster care home and make investments in qualifying tangible personal property used in the operation of the facility. The credit is equal to 20% of the qualified investment.
To claim the credit, taxpayers must provide a copy of the facility's license issued by the Colorado Department of Early Childhood and a list of the qualifying depreciable tangible personal property for which the credit is being claimed.
Employer Child Care Facility Investment Credit
A credit available to employers that provide a licensed child care facility for the benefit of their employees and make investments in qualifying tangible personal property used in the operation of that facility. The credit is equal to 10% of the qualified investment made during the tax year.
To claim the credit, the employer must provide a copy of the facility's license issued by the Colorado Department of Early Childhood and a list of the qualifying depreciable tangible personal property for which the credit is being claimed.
CO Earned Income Tax Credit for ITIN Filers
A refundable Colorado credit available to taxpayers who were unable to claim the federal Earned Income Tax Credit (EITC) because they, their spouse, or a dependent used an Individual Taxpayer Identification Number (ITIN) or a Social Security Number that is not valid for employment. The credit may also be available to certain taxpayers under age 25 without qualifying children who meet Colorado's eligibility requirements.
Taxpayers who qualified for the federal EITC but were unable to include certain dependents because those dependents have an ITIN or a Social Security Number that is not valid for employment may also qualify for an additional Colorado credit amount.
To claim the credit, taxpayers must complete Form DR 0104TN, calculate the credit, and submit the form with their Colorado return.
Long-Term Care Insurance Credit
A credit available to qualifying Colorado residents who purchase or make payments for a qualifying long-term care insurance policy for themselves or their spouse and meet Colorado income limitations.
The credit is generally equal to 25% of the premiums paid during the tax year, up to a maximum credit of $150 per policy. Eligibility is based on residency, income, and the type of insurance policy purchased. The credit is nonrefundable and cannot be carried forward to future tax years.
Colorado Energy, Clean Vehicle, and Environmental Credits
Heat Pump Credit for Registered Contractors
Residential Energy Storage System Credit
A refundable credit is available for qualifying residential energy storage systems installed in Colorado when the building owner assigns the credit to the seller or installer. The credit is refundable only if it has been assigned by the owner.
The credit amount is calculated on Form DR 1307. Taxpayers claiming the credit must submit Form DR 1307 with their Colorado return. If the credit was not assigned to the seller, it must be claimed in the appropriate section of the Colorado credit schedule for residential energy storage system credits.
Certified Greenhouse Gas Avoidance Credits
Electric-Powered Lawn Equipment Credit for Qualified Retailers
A refundable credit is available to qualified Colorado retailers that sell new electric-powered lawn equipment in Colorado during eligible tax years. To qualify, the retailer must hold a Colorado sales tax license, meet Colorado sales tax filing and payment requirements, register with the Colorado Department of Revenue, and provide the purchaser with a required discount at the time of sale.
The credit is equal to 33% of the purchase price of qualifying equipment sold, while the purchaser must receive a discount equal to 30% of the purchase price. Qualifying equipment includes certain electric-powered lawn mowers, leaf blowers, trimmers, and snowblowers that are powered exclusively by electricity.
The credit applies only to retail sales of new qualifying equipment sold in Colorado and requires quarterly reporting and registration through Revenue Online. Any unused credit is refundable and cannot be carried forward.
Innovative Motor Vehicle Credit
A credit available to taxpayers who purchase or lease a qualifying innovative motor vehicle or innovative truck and register the vehicle in Colorado. The credit amount is calculated on Form DR 0617 and is based on the type of qualifying vehicle and the applicable Colorado credit amount.
To claim the credit, taxpayers must submit:
- A completed Form DR 0617
- A copy of the purchase invoice or lease agreement
- Proof of permanent Colorado vehicle registration
Taxpayers who assigned the credit to a financing entity or motor vehicle dealer are not eligible to claim the credit on their return. Those assigned credits must instead be claimed by the financing entity or dealer using the appropriate Colorado credit forms.
Assigned Innovative Motor Vehicle and Truck Credits and Electric Bicycle Credit Reconciliation Schedule (Form DR 0619)
Used to report assigned motor vehicle, truck, and electric bicycle credits and reconcile assigned credit amounts.
Aircraft Modification for Unleaded Fuel Credit
A credit available to taxpayers who own an aircraft registered with the Federal Aviation Administration (FAA) in Colorado and pay to modify the aircraft so it can operate on unleaded aviation gasoline instead of leaded aviation gasoline. The modification must be approved through a supplemental type certificate or other authorized approval process.
The credit is equal to 50% of the taxpayer's qualifying out-of-pocket modification expenses, up to a maximum credit of $500 per aircraft modified during the tax year. Taxpayers claiming the credit for multiple aircraft must file electronically.
Colorado Business and Employer Tax Credits
Credit for Conversion Costs to an Employee-Owned Business Model
Alternative Transportation Options Credit
Apprenticeship Credit
A credit available to Colorado employers that participate in a Registered Apprenticeship Program (RAP) and employ apprentices in qualifying New and Emerging Occupations. To claim the credit, the employer must receive a tax credit certificate from Apprenticeship Colorado within the Office of Future Work, and the allowable credit amount is determined by that certificate.
Generally, eligible employers must:
- Be a qualified taxpayer conducting business in Colorado.
- Employ one or more registered apprentices for at least six months during the tax year.
- Employ apprentices who worked at least 1,040 hours during the tax year.
- Employ apprentices in approved New and Emerging Occupations.
- Be listed in the Colorado Registered Apprenticeship Programs Directory.
The tax credit certificate must be retained and submitted when claiming the credit.
Colorado Job Growth Incentive Tax Credit
A credit available to businesses that create qualifying new jobs in Colorado as part of a competitive expansion or relocation project. The credit is administered by the Colorado Office of Economic Development and International Trade (OEDIT) and must be approved by the Colorado Economic Development Commission before the project begins.
The credit is generally equal to 50% of the employer's FICA taxes paid on eligible net new jobs and may be claimed for up to eight years. The program is performance-based, meaning businesses must meet approved job creation and wage commitments to receive the credit.
If the credit exceeds the taxpayer's Colorado income tax liability, the unused portion is not refundable, but it may be carried forward for up to 10 years.
Advanced Industry Investment Credit
A credit available to investors who make qualifying investments in certified Colorado advanced industry businesses. The program is designed to encourage investment in innovative Colorado companies operating in industries such as aerospace, bioscience, energy, advanced manufacturing, technology, and electronics.
Eligible investors may receive a credit equal to 25% of a qualifying investment, up to a maximum credit of $100,000. The credit may increase to 35% of the investment if the business is located in a Colorado Enterprise Zone or rural county.
The business receiving the investment must be certified under Colorado's Advanced Industry Investment Tax Credit program, and the investment must meet all program requirements and receive approval before the credit can be claimed.
Strategic Capital Tax Credit
A credit available to taxpayers who have received one or more Strategic Capital Tax Credit certificates. The amount of credit that can be used in the current year is calculated on Form DR 1330 and is limited by the taxpayer's Colorado tax liability.
Taxpayers must complete Form DR 1330, enter the allowable nonrefundable credit amount on the Colorado return, and submit both the completed form and copies of all applicable credit certificates. Because of the additional calculations and documentation requirements, electronic filing is strongly recommended when claiming Strategic Capital Tax Credits.
Credit for Employer Contributions to Employee 529 Plan
A credit available to employers that make contributions to an employee's qualified 529 college savings account.
Employer Assistance for Home Purchase Credit
A credit available to employers that establish one or more qualifying home savings accounts for employees in Colorado. The credit is generally equal to 5% of the employer's qualifying contributions to the account, subject to Colorado limitations and eligibility requirements.
The credit is intended to encourage employers to help employees save toward the purchase of a home through Colorado's home savings account program.
Business Personal Property Credit for Individual Business Owners
A credit available to taxpayers who paid Colorado business personal property tax during the tax year. The credit applies only to business personal property and does not apply to real property (real estate).
The credit is based on the actual value of the qualifying business personal property and the amount of business personal property tax paid. Taxpayers may also qualify for the credit on their share of business personal property taxes paid by a partnership or S corporation.
The credit is generally limited to the tax attributable to the first $18,000 of actual value of qualifying personal property. A copy of the county assessor statement must be submitted with the return when claiming the credit.
Colorado Film Incentive Credit
A credit available to qualified film and media production projects that incur eligible production expenses in Colorado. The credit is generally worth up to 20% of qualified Colorado expenditures, or up to 22% for productions that utilize qualifying locations within a Colorado Enterprise Zone.
Eligible projects may include:
- Feature films
- Television pilots
- Television series
- Streaming series
- Music videos
- Industrial productions
- Documentaries
- Video game design and development
The program is administered through the Colorado Office of Film, Television and Media, and qualifying projects must meet Colorado's certification and program requirements before claiming the credit.
Food Accessibility Credit
Colorado Housing, Community, and Economic Development Credits
Affordable Housing Credit
A credit available to qualified taxpayers who own a direct or indirect interest in a qualified housing development. Colorado offers three housing-related credits:
- Affordable Housing Credit
- Affordable Housing in Transit-Oriented Communities Credit
- Middle-Income Housing Credit
These credits are intended to encourage the development and preservation of affordable and workforce housing throughout Colorado. The amount of credit available is determined and allocated by the Colorado Housing and Finance Authority (CHFA), and taxpayers must meet the program's eligibility and certification requirements to claim the credit.
Each credit is determined by the Colorado Housing and Finance Authority (CHFA). For more information visit their site here.
Homeless Contribution Credit
A credit available to taxpayers who make monetary or in-kind contributions to an eligible homelessness-related project approved by the Colorado Division of Housing. The credit is available only for contributions made to qualifying projects that have been approved under the program.
To claim the credit, taxpayers must provide the credit certificate number and submit the credit certificate issued by the nonprofit organization administering the approved project with their Colorado return.
Rural Jump-Start Zone Credit
A credit available to taxpayers who own an approved business or work for an approved business participating in Colorado's Rural Jump-Start Zone Program. The program is designed to encourage business development and job creation in designated rural areas of Colorado.
To claim the credit, the taxpayer must receive a credit certificate from the Colorado Office of Economic Development and International Trade (OEDIT) and submit Form DR 0113 with the Colorado return. Eligibility is limited to approved businesses and employees participating in the Rural Jump-Start Zone Program.
Retrofitting a Residence to Increase Residence's Visitability Credit
A credit available to taxpayers who make qualifying modifications to a residence to improve accessibility and independence for an individual with an illness, impairment, or disability. The credit is intended to help offset the cost of home modifications that increase a residence's visitability and accessibility.
The credit is generally available for up to $5,000 per qualifying individual, with additional credits available for each additional qualifying family member with a disability.
To claim the credit, the taxpayer must obtain a tax credit certificate from the Colorado Department of Local Affairs, Division of Housing and submit a copy of the certificate with the Colorado return.
Contaminated Land Redevelopment Credit
A credit available to property owners who incur costs to remediate contaminated property in Colorado and receive a tax credit certificate from the Colorado Department of Public Health and Environment (CDPHE). The credit is intended to encourage the cleanup and redevelopment of contaminated properties, often referred to as brownfield sites.
The credit is based on qualifying remediation expenses and is subject to Colorado program limits and certification requirements. In certain situations, all or part of the credit may be transferred to another taxpayer. Taxpayers claiming the credit must have received the required CDPHE certification before the credit can be claimed.
Enterprise Zone Contribution Credit
A credit available to taxpayers who have received one or more Colorado Enterprise Zone tax credit certificates for qualifying activities conducted within a designated Enterprise Zone. The amount of credit that can be used in the current year is calculated on Form DR 1366 and is limited by the taxpayer's Colorado tax liability.
Taxpayers must complete Form DR 1366, enter the allowable nonrefundable credit amount on the Colorado return, and submit both the completed form and copies of all applicable credit certificates. Because of the additional calculations and documentation requirements, electronic filing is strongly recommended when claiming Enterprise Zone Credits.
Certified Economic Development Credit Schedule (Form DR 1366)
Used to report certified economic development credits that have been approved by the State of Colorado.
Certified Economic Development Credit Schedule for Taxpayers with a Refund Certificate (Form DR 1370)
Used to report certified economic development credits associated with a Colorado refund certificate.
Colorado Specialty, Historic Preservation, and Carryforward Credits
Preservation of Historic Structures Credit
A credit available to taxpayers who complete qualifying preservation and rehabilitation work on eligible historic structures in Colorado. The credit is intended to encourage the restoration and preservation of historically significant buildings while maintaining their historic character.
Taxpayers claiming the credit must meet the program's certification and eligibility requirements, and the credit is reported separately from the older Historic Property Preservation Credit. Supporting documentation and approval may be required before the credit can be claimed.
Rural and Frontier Health Care Preceptor Credit
A credit available to qualifying health care professionals who serve as approved preceptors in rural or frontier areas of Colorado. To claim the credit, the preceptor must receive certification confirming all program requirements were met.
To qualify, the taxpayer must:
- Obtain a completed Form DR 0366 from the educational institution or the regional Area Health Education Center (AHEC) office that verifies eligibility.
- Submit an electronic copy of the completed certification to the Colorado Department of Revenue.
- Receive notification from the Department of Revenue confirming eligibility for the credit.
- File a Colorado income tax return and submit Form DR 0366 with the return when claiming the credit.
The credit is available only to taxpayers who have been certified as eligible under the Rural and Frontier Health Care Preceptor Program.
Credit for Taxes Paid to Another State
A credit available to Colorado residents who paid income tax to another state on income that is also taxed by Colorado, helping prevent double taxation.
Minimum Tax Credit
Only allowed on tax years 2022 and prior.
A credit available to individuals, estates, and trusts who are allowed a federal credit for prior year minimum tax on IRS Form 8801. The Colorado credit is generally equal to 12% of the federal minimum tax credit and is based on federal Alternative Minimum Tax (AMT) paid in prior years.
The credit is limited to the taxpayer's net Colorado income tax liability and cannot be carried forward to a future year if the credit exceeds the tax due. Part-year residents and nonresidents may need to prorate the credit based on their Colorado AMT apportionment percentage.
To claim the credit, taxpayers must complete the appropriate Colorado credit schedule and include it with their Colorado income tax return.
Historic Property Preservation Credit
The carry forward of prior year Historic Property Preservation credit (§39-22-514, C.R.S.) For more information on this credit, review (§39-22-514, C.R.S.).
Carryforward of Prior Year Colorado Works Program Credit
Credit only for tax years 2024 and earlier.
Taxpayers can no longer earn new Colorado Works Program Credits, but any unused credit from prior years may still be claimed as a carryforward if it remains within the allowable carryforward period.
Unused credit may be carried forward for up to three years and must be applied to the earliest available tax year first. The credit can only be used to the extent permitted under Colorado law and any remaining carryforward expires after the allowable carryforward period.
Aircraft Manufacturer New Employee Credit
Credit only for tax years 2022 and earlier.
This credit was available only for tax years 2022 and earlier for qualifying aircraft manufacturers that hired eligible new employees in Colorado. New credits can no longer be earned, but unused credits from prior years may still be claimed as a carryforward.
Any unused credit may be carried forward for up to five years and must be applied to the earliest available tax year first. Any remaining credit expires after the allowable carryforward period.
Disability Funding Committee License Fee Credit
Credit only for tax years 2024 and earlier.
Taxpayers can no longer earn new credits under this program, but unused credits from prior years may still be claimed as a carryforward if they remain within the allowable carryforward period.
Any unused credit may be carried forward for up to five years and must be applied to the earliest available tax year first. Any remaining credit expires after the allowable carryforward period.
Carryforward of Prior Year School-to-Career Investment Credit
Credit only for tax years 2024 and earlier.
This credit is for qualifying School-to-Career investments. New credits can no longer be earned, but unused credits from prior years may still be claimed as a carryforward.
Any unused credit may be carried forward for up to five years and must be applied to the earliest available tax year first. Any remaining credit expires after the allowable carryforward period.
Carry Forward of Prior Year Plastic Recycling Investment Credit
Credit only for tax years 2022 and earlier.
This credit is for qualifying investments in plastic recycling equipment and facilities. New credits can no longer be earned, but unused credits from prior years may still be claimed as a carryforward.
Any unused credit may be carried forward for up to five years and must be applied to the earliest available tax year first. Any remaining credit expires after the allowable carryforward period.
Carryforward of Prior Year Credit for Employer Paid Leave of Absence for Live Organ Donation
This credit was available only for tax years 2024 and earlier to employers that provided paid leave to employees who served as live organ donors. New credits can no longer be earned, but unused credits from prior years may still be claimed as a carryforward.
Any unused credit may be carried forward for up to five years and must be applied to the earliest available tax year first. Any remaining credit expires after the allowable carryforward period.
Notes
- Many Colorado credits require certificates, approval letters, or agency-issued documentation.
- Some credits are refundable, while others may only reduce Colorado tax liability.
- Certain credits require additional Colorado forms and schedules.
- Credit carryforwards generally require documentation showing the amount available from prior years.
- Taxpayers should retain all records supporting any credit claimed on the Colorado return.