39-22-539 Credit for Employer Contributions to Employee 529 Qualified State Tuition Programs. Basis and Purpose. The statutory bases for this rule are sections 39-21-112(1), 39-22-

104(4)(i), and 39-22-539, C.R.S. The purpose of this rule is to detail requirements relating to the credit allowed to employers for contributions made to an employee’s 529 qualified state tuition program account. (1) General Rule. For the tax periods specified in 39-22-539(3), C.R.S., and subject to the limitations established by section 39-22-539(3) and (4), C.R.S., an employer that makes a contribution to a 529 qualified state tuition program account owned by their employee is allowed a nonrefundable credit against their Colorado income tax liability. (2) Employers. For the purpose of the credit, whether a person is “doing business in the state” and therefore an “employer” as defined in section 39-22-539(2)(c), C.R.S., is determined pursuant to 1 CCR 201-2, Rule 39-22-301(1). For the purpose of section 39-22-539(2)(c), C.R.S., a “person” includes an individual, C corporation, S corporation, or partnership. (3) Limitation. A taxpayer cannot claim both a credit under section 39-22-539, C.R.S., and a subtraction under section 39-22-104(4)(i), C.R.S., for the same contribution.