What is the Colorado Plastic Recycling Investment Tax Credit?
What is the Colorado Plastic Recycling Investment Tax Credit?
The plastic recycling investment tax credit is equal to 20% of the first $10,000 of net expenditures to third parties for rent, wages, supplies, consumable tools, equipment, test inventory and utilities made for new plastic recycling technology in Colorado. The credit is available to Colorado resident individuals only. [§39-22-114.5, C.R.S.]
The maximum credit that can be claimed on Colorado Form 104 in any tax year is limited to the net tax liability. Any credit in excess of this amount may be carried forward for up to five years.
The credit is not available to C corporations, S corporations, partnerships or other pass through entities. [§39-22-309, C.R.S. ]
For more information, see FYI Publication 56.
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