EZ Administrator Guide for Extending Enterprise Zone Tax Credits in Terminated Areas
The DR0078 is available through the DOR website:
https://www.colorado.gov/pacific/tax/individual-income-tax-instructions-and-forms
The DR0078 is the official form from the Colorado Department of Revenue for a taxpayer and an EZ
Administrator to jointly certify the eligibility of a taxpayer to claim certain Enterprise Zone tax credits
following the termination of an Enterprise Zone. OEDIT has not produced an on-line form; so the paper
form will be integrated with the Salesforce system for Pre-Certification and Certification of Enterprise
Zone tax credits.
The Investment Tax Credit, Job Training Program Tax Credit, and New Employee Tax Credits (including
the addition for Agricultural Processors) and the Employer Sponsored Health Insurance Credit are the
only business credits for which an extension is allowed. No extension is allowed for planned activity that
would earn the Research & Development or Vacant Building Rehabilitation Tax Credits.
This form requires a joint certification by both the taxpayer and the zone administrator, that plans were
in place for job creation, investment in job training programs, or capital expansion before the
announcement of the zone termination. Detailed business planning documentation supporting the
planned investment and job increases is required and must be kept with the taxpayer’s tax records and
supplied to the DOR upon request. The DOR has authority to review and evaluate the documents and
may determine that they do or do not support the extension.
Documentation Requirements:
Per the statutes the documents must demonstrate that the taxpayer relied on these credits in making
business planning decisions. Therefore, the documentation that the zone administrator approved must
demonstrate this reliance and the documents must pre-date the announcement of termination of the
zone.
Reliance on the Credits in making business planning decisions - documents showing evidence of reliance
on the credits may include, but are not limited to: financial projections that include the EZ credits in
calculations, or communications between the Zone Administrator or other economic development
professional explaining the EZ incentives.
Pre-Date Termination – the documents must have been created prior to the termination
announcement. The termination announcement date is 8/13/2015 for all enterprise zones, except that
the termination date for Adams and Denver counties is expected to be 10/15/2015.
The termination announcement date for EZ Contribution projects is expected to be 11/12/2015 – the
date which the EDC is expected to approve Project Re-Certifications.
A figure for both the cumulative investment/employee count and the tax credit amount (calculated at
the current rate) is required for each tax credit that is expected to be claimed during the extended credit
period. The maximum cumulative period of extension is ten years.
An extension of up to five years is available for a business that made plans based on the Enhanced Rural
Enterprise Zone benefits. Assuming that the business is still within an Enterprise Zone, but the county
lost Enhanced Rural EZ status, the taxpayer will only need to write “Enhanced” next to the “New
business facility (NBF) employee credit” line and include the additional EREZ credit in the credit
calculation.
Taxpayers that have made donation commitments to an Enterprise Zone Contribution Project may also
receive an extension for the Enterprise Zone Contribution credit. For documentation the taxpayer must
submit a pledge document that has been issued or authorized by the Contribution Project Organization.
EZ Administrator Guidelines for EZ Extension of Tax Credits
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The taxpayer is responsible for retaining the certified form DR0078 with its tax records. For any year in
which credits are earned and claimed the DR0078 form must be updated and a copy submitted to the
DOR. When preparing the tax return each year during the five or ten year extended period, the taxpayer
must write on the original form the tax year and the amount of the credit that is actually claimed during
that year in the boxes provided below each credit on Form DR0078. The cumulative total of each tax
credit claimed during the extension period cannot exceed the amount originally certified in the
cumulative total box. The taxpayer will also submit the Salesforce Certification approval (which means
that the taxpayer must pre-certify prior to each fiscal/tax year) and the DR1366, just as they would if the
business were still within an Enterprise Zone.
Administrator Steps
The EZ Administrator may reach out to businesses that they have worked with to locate or expand
within the enterprise zone. The EZ administrator reviews the documentation for reliance and timeliness
and certifies the original DR0078 for the taxpayer. Maintain a copy of the documentation and DR0078
for each business you approve for extended credits. The administrator does not need to sign any
updated DR0078.
Tips for completing the
DR0078
 Date termination of this area officially announced:
The termination announcement date is 08/13/2015 for all EZ , except Adams and Denver
Adams and Denver termination date is 10/15/2015.
The termination announcement date for EZ Contribution projects is 11/12/2015
 Effective date of termination of this zone area: 01/01/2016
 Documents. Check and include any that are available. Refer to the documentation requirements above
for requirements on reliance and timeliness.
 Work with taxpayer applicant and agree on cumulative amounts for each tax credit that is to be
extended.
 Both the taxpayer and the zone administrator sign and date.
 The taxpayer and zone administrator both need to maintain a copy of the document.
Educate the businesses you grandfather on the need to pre-certify and certify for the tax credits each
year of the extension period.
Salesforce Steps
 Have the business notify you via email that they have submitted an application for pre-certification in
Salesforce and have them include a copy their updated DR0078 (this document will become marked
over the years with the year and amount of the credit claimed). The zone administrator will determine
if there is credit still available within the figures first approved on the original DR0078.
 If approving the pre-certification, attach the DR0078 document to the pre-certification record for the
year.
 When you review the pre-certification application, click the checkbox on the Pre-certification record
to note that the application is for an Extended/Grandfathered credit. (we are adding a field) This field
will carry over to the Certification application so that we can run reports and look at Grandfathered
credit certifications separate from others.
 Add a Denial/Approval Note as follows: “approved for extended credits following termination of the
EZ. DR 0078 approved“.
 Attach the DR0078 (either the original or an updated document) to the Pre-Certification record.
 Approve
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*There are limited cases for which a business or taxpayer will be certified for Extended Credits; the
taxpayer must be able to demonstrate a reliance on the tax credit for the planned investment or
hiring. OEDIT and local zone administrators are committed to applying the program benefits in eligible
areas to address economic distress and are mindful of maintaining the integrity of the EZ program.*
EZ Administrator Guidelines for EZ Extension of Tax Credits
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