39-22-123.5 Earned Income Tax Credit. Basis and Purpose. The bases for this rule are sections 39-21-112(1), 39-21-113, 39-
22-123, and 39-22-123.5, C.R.S. The purpose of this rule is to clarify the availability and calculation of the earned income tax credit. (1) The Colorado earned income tax credit is allowed: (a) under section 39-22-123, C.R.S., for tax years commencing during 1999, 2000, 2001, and 2015; and (b) under section 39-22-123.5, C.R.S. for income tax years commencing on or after January 1, 2016. (2) Under section 39-22-123.5(2), C.R.S., the allowable Colorado earned income tax credit is equal to a percentage of the allowed federal earned income tax credit. If the federal earned income tax credit a taxpayer claims is disallowed, in whole or in part, or otherwise adjusted, the allowable Colorado earned income tax credit under section 39-22-123.5(2), C.R.S., shall be adjusted accordingly based on the amount of the federal credit that is allowed. However, additional Colorado earned income tax credit may be allowable under sections 39-22-123.5 (2.5) or (2.7), C.R.S. (3) In the case of a part-year Colorado resident, the allowable Colorado earned income tax credit shall be apportioned by multiplying the credit otherwise calculated pursuant to section 39-22-123.5, C.R.S., by the ratio determined under section 39-22-110(1), C.R.S.; except that the ratio for apportioning the Colorado earned income tax credit may not exceed 100%, even if the ratio determined under section 39-22-110(1), C.R.S., exceeds 100%.