Yes, you must carry over any Enterprise Zone Credit due to a 0 tax liability to future years.
You will need to complete Colorado Form 1366 for the carryover Enterprise Zone contribution Credit from a DR 0075
TurboTax Form DR 1778 is used to attach the following items:
- Other state(s) income tax return(s)
- Enterprise Zone Credit: DR 1366 and any applicable certification forms from the Zone Administrator
Form DR1778 should be generated as part of your CO return in TurboTax and you can print it out.
If you are electronically filing your Colorado return you can either:
- Go to the Colorado Revenue Online website at www.colorado.gov/revenueonline and select "Submit an e-Filer Attachment"; OR
- Use Form DR 1778, e-filer Attachment Form, to mail in certain tax documents. After your electronically filed Colorado Tax Return is accepted, mail DR 1778, Colorado e-filer Attachment Form along with applicable documentation to:
Colorado Department of Revenue
1375 Sherman Street
Denver, CO 80261-0006
[NOTE: This option can extend return processing time up to 6 weeks.]
For additional information regarding the CO Forms 1366 and DR-1778, please refer to the following link:
Filing CO DR-1778 to get CO Enterprise Zone Carryover Credit
Please refer to the following information on qualifying to file the carryover Enterprise Zone Credit in CO:
Qualifications to file CO Form 1366
Use this CO Form 1366 to calculate enterprise zone credits earned in the current tax year and to report any carryforward amounts from previous years (or any applicable carry back amounts).
Total non-refundable credit claimed cannot exceed the statutory limit or current year tax liability.
Any taxpayer who claims an enterprise zone credit is statutorily required to file their returns electronically (§39-30-111, C.R.S.) and most software products and tax preparers have the ability to meet this requirement.
