Tax News

CCH (cch.taxgroup.com) reports:

  Colorado Gov. Bill Ritter has signed legislation creating a corporate and personal income tax credit to encourage job growth in the state, effective for tax years 2009-2018. To qualify for the credit, taxpayers must create at least 20 new jobs in urban areas or five new jobs in an enhanced rural enterprise zone. The created jobs must pay at least 110% of the county wage in which the taxpayer is located and be retained for at least one year.

  The credit is equal to 50% of the amount the employer is required to pay in federal social security and Medicare taxes on the created jobs. Additionally, the nonrefundable credit may be carried forward for ten years, or through tax year 2024. Taxpayers seeking to claim the credit must file an application with the Colorado Economic Development Commission and provide documentation that, if not for the credit, the jobs would not have been created in Colorado.

  As previously reported, the enactment of the Colorado job growth tax credit was among Gov. Ritter's top priorities for the 2009 legislative session (TAXDAY, 2008/12/23, S.8).

  Subscribers may view the text of the legislation, as well as a press release from Gov. Ritter on H.B. 1001.

H.B. 1001, Laws 2009, effective 91 days after the adjournment of the 2009 General Assembly, unless a referendum is filed; Press Release , Office of Colorado Governor Bill Ritter, May 4, 2009