Colo. Code Regs. 39-22-119.5
Current through Register Vol. 47, No. 23, December 10, 2024
Rule 39-22-119.5 - Low-Income Child Care Expenses Tax CreditBasis and Purpose. The bases for this rule are sections 39-21-112(1) and 39-22-119.5, C.R.S. The purpose of this rule is to describe the proper apportionment of the low-income child care expenses tax credit allowed to part-year Colorado residents.
(1) In the case of a part-year Colorado resident, the allowable low-income child care expenses tax credit shall be apportioned by multiplying the credit otherwise calculated pursuant to section 39-22-119.5, C.R.S., by the ratio determined under section 39-22-110(1), C.R.S.; except that the ratio for apportioning the low-income child care expenses tax credit may not exceed 100%, even if the ratio determined under section 39-22-110(1), C.R.S., exceeds 100%. (a)Example 1. Taxpayer A is a part-year Colorado resident in tax year 2020. Their apportionment ratio determined pursuant to section 39-22-110(1), C.R.S., is 60%. Taxpayer A satisfies the requirements for the low-income child care expenses tax credit pursuant to section 39-22-119.5, C.R.S. Taxpayer A's child care expenses in 2020 were $2,000. The Colorado low-income child care expenses tax credit allowed to Taxpayer A is calculated first by multiplying the $2,000 in child care expenses by 25%, pursuant to section 39-22-119.5(3)(b), C.R.S., and then multiplying the result ($500) by the 60% apportionment ratio, pursuant to section 39-22-119.5(6), C.R.S. Taxpayer A is allowed a Colorado low-income child care expenses tax credit of $300.(b)Example 2. Taxpayer B is a part-year Colorado resident in tax year 2020. Their apportionment ratio determined pursuant to section 39-22-110(1), C.R.S., is 110%. Taxpayer B satisfies the requirements for the low-income child care expenses tax credit pursuant to section 39-22-119.5, C.R.S. Taxpayer B's child care expenses in 2020 were $2,000. The Colorado low-income child care expenses tax credit allowed to Taxpayer B is calculated first by multiplying the $2,000 in child care expenses by 25%, pursuant to section 39-22-119.5(3)(b), C.R.S., and then multiplying the result ($500) by the 100% apportionment ratio, pursuant to section 39-22-119.5(6), C.R.S., and paragraph (1) of this rule, because the apportionment ratio determined pursuant to section 39-22-110(1), C.R.S., exceeds 100%. Taxpayer B is allowed a Colorado low-income child care expenses tax credit of $500.Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/14/201437 CR 18, September 25, 2014, effective 10/15/201437 CR 19, October 10,2014, effective 10/30/201437 CR 22, November 25, 2014, effective 12/16/201438 CR 04, February 25, 2015, effective 3/17/201538 CR 07, April 10, 2015, effective 4/30/201538 CR 11, June 10, 2015, effective 6/30/201538 CR 22, November 25, 2015, effective 12/15/201538 CR 24, December 25, 2015, effective 1/14/201638 CR 24, December 25, 2015, effective 1/19/201639 CR 01, January 10, 2016, effective 1/30/201639 CR 16, August 25, 2016, effective 9/14/201640 CR 08, April 25, 2017, effective 5/15/201740 CR 12, June 25, 2017, effective 7/15/201740 CR 16, August 25, 2017, effective 9/14/201740 CR 23, December 10, 2017, effective 1/1/201841 CR 14, July 25, 2018, effective 8/14/201841 CR 20, October 25, 2018, effective 11/14/201842 CR 02, January 25, 2019, effective 12/18/201842 CR 02, January 25, 2019, effective 12/18/2018, expires 4/17/201942 CR 06, March 25, 2019, effective 4/14/201943 CR 04, February 25, 2020, effective 3/16/202043 CR 13, July 10, 2020, effective 6/2/202043 CR 17, September 10, 2020, effective 9/30/202044 CR 03, February 10, 2021, effective 3/2/202144 CR 07, April 10, 2021, effective 4/30/202144 CR 08, April 25, 2021, effective 5/15/202145 CR 01, January 10, 2022, effective 1/30/202245 CR 04, February 25, 2022, effective 3/17/202245 CR 05, March 10, 2022, effective 3/30/202246 CR 11, June 10, 2023, effective 5/2/202346 CR 09, May 10, 2023, effective 5/30/2023