New Income Tax Rules

Request for Input - through May 12, 2023:

Rule 39-22-104(4)(i). Qualified State Tuition Program & ABLE Program Contributions Subtraction. The purpose of this new rule is to clarify requirements and limitations relating to the subtraction allowed to individuals, estates, and trusts for payments and contributions made to a qualified state tuition program or a qualified ABLE program.

Rule 39-22-539. Credit for Employer Contributions to Employee 529 Qualified State Tuition Programs. The purpose of this new rule is to detail requirements relating to the credit allowed to employers for contributions made to an employee’s 529 qualified state tuition program account.

April 6, 2023 Agenda of Proposed Rules:

Rule 39-22-104(4)(n.5). Wildfire Mitigation Measures Subtraction. The purpose of this amendment is to make clarifying revisions and include an example of a noneligible expense relating to inspections and certification fees.

Rule 39-22-543. Wildfire Mitigation Measures Credit. The purpose of this new rule is to provide clarification regarding the wildfire mitigation measures credit enacted by House Bill 22-1007. The rule also provides examples of out-of-pocket expenses, eligible and ineligible costs, landowner criteria, and qualifying ownership interests in real property.

Rule 39-22-604. Colorado Income Tax Withholding. The purpose of this amendment is to provide guidance regarding several matters, including the current method for calculating withholding; exemption certificates, including the new optional Colorado exemption certificate; employees who do not provide a withholding certificate; the applicability of penalty and interest to late payments; and exempt wages for which reporting is not required.

Rule 39-22-538. Rural Primary Health Care Preceptor Credit. The purpose of this amendment is to conform the existing rule to legislative changes made by House Bill 22-1005.

Rule 39-29-106. Coal. The purpose of this amendment is to conform the rule to changes made by House Bill 21-1312, and repeal a part of the rule regarding related parties because controlled groups and their component members are addressed in section 39-29-114, C.R.S.

Rule 39-22-2003. State Sales Tax Refund. The purpose of this amendment is to publish the amount of any state sales tax refund when there are sufficient excess state revenues under the Taxpayer’s Bill of Rights (TABOR).

Rule 39-21-102. Limitation Period for Recovery of Erroneous or Excessive Refund. The purpose of this amendment is to repeal this rule because it is duplicative of section 13-80-101, C.R.S.

Rule 39-22-104(5). Gross Receipts Tax. The purpose of this amendment is to repeal the rule because House Bill 22-1025 no longer authorizes the use of the election provided in section 39-22-104(5), C.R.S., for tax years commencing on or after January 1, 2023.

Rule 39-22-301(2). Gross Receipts Tax. The purpose of this amendment is to repeal the rule because House Bill 22-1025 no longer authorizes the use of the election provided in section 39-22-301(2), C.R.S., for tax years commencing on or after January 1, 2023.

Rule 39-22-507.5(1). The “Old” Colorado Investment Tax Credit. The purpose of this amendment is to repeal the rule because House Bill 22-1025 no longer authorizes the use of the credit provided in section 39-22-507.5, C.R.S., for tax years commencing on or after January 1, 2023.

Rule 39-22-507.5(2). Property Used in Colorado. The purpose of this amendment is to repeal the rule because House Bill 22-1025 no longer authorizes the use of the credit provided in section 39-22-507.5, C.R.S., for tax years commencing on or after January 1, 2023.

Rule 39-22-507.5(12). Duplicate Credits Not Allowed. The purpose of this amendment is to repeal the rule because House Bill 22-1025 no longer authorizes the use of the credit provided in section 39-22-507.5, C.R.S., for tax years commencing on or after January 1, 2023.

Rule 39-22-507.6. The New Colorado Investment Tax Credit. The purpose of this amendment is to repeal the rule because House Bill 22-1025 no longer authorizes the use of the credit provided in section 39-22-507.6, C.R.S., for tax years commencing on or after January 1, 2023.

Rule 39-22-514. Historic Property Preservation Credit. The purpose of this amendment is to repeal the rule because the credit is no longer available for any person for income tax years commencing on or after January 1, 2020.

Rule 39-22-516(2.7). Alternative Fuel Refueling Facility Credit. The purpose of this amendment is to repeal the rule because the credit is not authorized for tax years commencing after January 1, 2011.

Rule 39-22-517. Tax Credit for Child Care Investment. The purpose of this amendment is to repeal the rule because it is duplicative of the statute.

Rule 39-22-517(3)(a). Child Care Center. The purpose of this amendment is to repeal the rule because it is duplicative of statute.

Rule 39-22-517(3)(b). Family Child Care Home. The purpose of this amendment is to repeal the rule because it is duplicative of statute.

Rule 39-22-517(3)(d). Child Care Center Investment Credit. The purpose of this amendment is to more closely conform the rule to the statutory language and to repeal parts of the rule that are duplicative of section 39-22-517, C.R.S.

Rule 39-26-110. Retailer with Multiple Locations. The purpose of this amendment is to repeal this rule because section 39-26-110, C.R.S., was repealed in House Bill 21-1155.

Rule 39-26-703-1. The purpose of this amendment is to repeal this rule because the provisions of the statute for which this rule is clarifying have not been available to any person since on or before July 1, 1979.

Rule 39-26-703-2. The purpose of this amendment is to repeal this rule because it is duplicative of section 39-26-703, C.R.S.

Rule 39-26-720. Bingo Equipment. The purpose of this amendment is to repeal this rule because it is duplicative of section 39-26-720, C.R.S., and the provisions of Part 6 of Article 21 of Title 24, C.R.S.

Rule 39-26-721. Factory-Built Housing. The purpose of this amendment is to repeal this rule because the term “factory-built housing” is no longer used in section 39-26-721, C.R.S., pursuant to amendments made in House Bill 19-1011. As a result, clarification of the term is no longer necessary.

1 CCR 201-9. Passenger and Ton Mile Tax. The purpose of these amendments is to repeal rules that are obsolete and pertain to statutes that are not administered by the Taxation Division. In addition, the amendments update the remaining rule in order to renumber the rule to match the current corresponding statute, and rewrite the rule in order to make grammatical, stylistic, and organizational changes to improve its clarity and readability.