Colorado Payroll Updates - January 2025
Colorado Corporate Income Tax—Colorado issues guidance on remediation of contaminated land credit.
The Colorado Department of Revenue has updated its publication on the remediation of contaminated land credit which provides a credit to eligible property owners who incur costs for the approved environmental remediation of their contaminated land. Individuals, trusts, estates, and corporations can claim the credit. Qualified entities such as cities, towns, school districts, and public institutions cannot claim the credit directly, but can transfer credits to another taxpayer. The amount of the credit is based on the amount expended by the property owner and the location of the property. The credit is limited to the taxpayer's net tax liability. If the allowable credit exceeds the taxpayer's liability, the excess credit can be carried forward up to five tax years. Credit certification forms and calculation tables can be found in the updated publication. (Income Tax Topics: Remediation of Contaminated Land Credit, Colo. Dept. Rev., 01/01/2025.)
Colorado Credits and Incentives—Colorado issues guidance on remediation of contaminated land credit.
The Colorado Department of Revenue has updated its publication on the remediation of contaminated land credit which provides a credit to eligible property owners who incur costs for the approved environmental remediation of their contaminated land. Individuals, trusts, estates, and corporations can claim the credit. Qualified entities such as cities, towns, school districts, and public institutions cannot claim the credit directly, but can transfer credits to another taxpayer. The amount of the credit is based on the amount expended by the property owner and the location of the property. The credit is limited to the taxpayer's net tax liability. If the allowable credit exceeds the taxpayer's liability, the excess credit can be carried forward up to five tax years. Credit certification forms and calculation tables can be found in the updated publication. (Income Tax Topics: Remediation of Contaminated Land Credit, Colo. Dept. Rev., 01/01/2025.)
Colorado Personal Income Tax—Colorado issues guidance on remediation of contaminated land credit.
The Colorado Department of Revenue has updated its publication on the remediation of contaminated land credit which provides a credit to eligible property owners who incur costs for the approved environmental remediation of their contaminated land. Individuals, trusts, estates, and corporations can claim the credit. Qualified entities such as cities, towns, school districts, and public institutions cannot claim the credit directly, but can transfer credits to another taxpayer. The amount of the credit is based on the amount expended by the property owner and the location of the property. The credit is limited to the taxpayer's net tax liability. If the allowable credit exceeds the taxpayer's liability, the excess credit can be carried forward up to five tax years. Credit certification forms and calculation tables can be found in the updated publication. (Income Tax Topics: Remediation of Contaminated Land Credit, Colo. Dept. Rev., 01/01/2025.)
Colorado FAMLI FAQ Explains Employers Not Required to Pay Wages While Employees on Leave
Under the Colorado FAMLI (Family and Medical Leave Insurance) program, employers are not responsible for paying their employees' wages while they are on FAMLI leave. Employers are, however, required to continue covering any portion of the employee's health insurance benefits that they normally cover during the leave period. Local government employers that opt-out of the FAMLI program do not have to meet this requirement, but the terms of specific benefit policies and/or other regulations may require benefits to be maintained during leave. It is also important to note that although businesses may experience strain from employee vacancies due to leave, they have options to manage the workload, including sharing responsibilities among other employees and using vacancy savings to potentially offer bonuses or hazard pay for those taking on additional work.