39-22-517 Child Care Center Investment Credit. Basis and Purpose. The bases for this rule are sections 39-21-112 and 39-22-517,

C.R.S. The purpose of this rule is to further define the tangible personal property eligible for the child care center investment credit. (1) General Rules. (a) Any person operating a child care center, family child care home, or foster care home licensed pursuant to the provisions of sections 26-6-905 and 26.5-5-309, C.R.S., is allowed a credit against the tax imposed pursuant to article 22 of title 39, C.R.S., in an amount of twenty percent of the taxpayer’s annual investment in tangible personal property to be used in the child care center, family child care home, or foster care home. (b) Any sole proprietorship, partnership, limited liability corporation, subchapter S corporation, or regular corporation which provides child care facilities which are incidental to their business and are licensed pursuant to sections 26-6-905 and 26.5-5-309, C.R.S., for the use of its employees is allowed a credit against the tax imposed pursuant to article 22 of Title 39, C.R.S., in an amount of ten percent of the taxpayer’s annual investment in tangible personal property to be used in such child care facilities. (2) Qualifying Tangible Personal Property. For the purposes of section 39-22-517, C.R.S., tangible personal property shall only include tangible personal property purchased for use in the operation of a child care center, family child care home, or foster care home to the extent the property qualifies as depreciable property for federal income tax purposes with a determinable life that exceeds one year and the cost of such property is allowed as a deductible business expense for federal income tax purposes either as a current expense or as a deduction for depreciation. For example, if a taxpayer purchased a van which was to be used 50% of the time for the taxpayer's personal matters, 50% of the cost of the van would be qualifying tangible personal property.