2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › INCOME TAX (§§ 39-22-101 — 39-22-5508) › Article 22 - Income Tax (§§ 39-22-101 — 39-22-5508) › Part 3 - CORPORATIONS (§§ 39-22-300.1 — 39-22-347) › Subpart 1 - C CORPORATIONS (§§ 39-22-300.1 — 39-22-310) › Section 39-22-301 - [Effective Until 8/7/2024] Corporate tax imposed - repeal

(1)
(a)
For income tax years commencing on or after January 1, 1983, but before July 1, 1986, a tax is imposed upon each domestic C corporation and foreign C corporation doing business in Colorado annually in an amount equal to five percent of the net income of such C corporation during the year derived from sources within Colorado. Income from sources within Colorado includes income from tangible or intangible property located or having a situs in this state and income from any activities carried on in this state, regardless of whether carried on in intrastate, interstate, or foreign commerce.
(b)
For income tax years commencing on or after January 1, 1981, but before January 1, 1983, a tax is imposed upon each domestic C corporation and foreign C corporation doing business in Colorado annually in an amount equal to five percent of the net income of such C corporation during the year derived from sources within Colorado reduced pursuant to the reduction tables set forth in subsections (1.1) and (1.2) of this section. Income from sources within Colorado includes income from tangible or intangible property located or having a situs in this state and income from any activities carried on in this state, regardless of whether carried on in intrastate, interstate, or foreign commerce. In the case of a C corporation which is a component member of a controlled group of corporations as defined in section 1563 (a) of the internal revenue code, the sum of the Colorado net incomes of all the component members of the controlled group, but not the losses of each component member thereof, shall be used in computing the reduction for the controlled group. The reduction for the controlled group may be allocated between or among the component members thereof as agreed to by such members. If such an agreement is not reached, the executive director shall allocate the reduction based on the ratio of the Colorado net income of each component member to the total Colorado net incomes of all component members.
(c)
For income tax years commencing on or after July 1, 1986, but before July 1, 1987, a tax is imposed upon each domestic C corporation and foreign C corporation doing business in Colorado annually in an amount equal to six percent of the net income of such C corporation during the year derived from sources within Colorado reduced pursuant to the reduction table set forth in subsection (1.3) of this section. Income from sources within Colorado includes income from tangible or intangible property located or having a situs in this state and income from any activities carried on in this state, regardless of whether carried on in intrastate, interstate, or foreign commerce. In the case of a C corporation which is a component member of a controlled group of corporations as defined in section 1563 (a) of the internal revenue code, the sum of the Colorado net incomes of all the component members of the controlled group, but not the losses of each component member thereof, shall be used in computing the reduction for the controlled group. The reduction for the controlled group may be allocated between or among the component members thereof as agreed to by such members. If such an agreement is not reached, the executive director shall allocate the reduction based on the ratio of the Colorado net income of each component member to the total Colorado net incomes of all component members.
(d)
(I)
A tax is imposed upon each domestic C corporation and foreign C corporation doing business in Colorado annually in an amount of the net income of such C corporation during the year derived from sources within Colorado as set forth in the following schedule of rates:
(A)
For income tax years commencing on or after July 1, 1987, but before July 1, 1988:
If the Colorado net income is:
The tax is:
$50,000.00 or less
5.5% of the Colorado net income
Over $50,000.00
$2,750.00 plus 6% of the excess Colorado net income over $50,000.00
(B)
For income tax years commencing on or after July 1, 1988, but before July 1, 1989:
If the Colorado net income is:
The tax is:
$50,000.00 or less
5% of the Colorado net income
Over $50,000.00
$2,500.00 plus 5.5% of the excess Colorado net income over $50,000.00
(C)
For income tax years commencing on or after July 1, 1989, but before July 1, 1990:
If the Colorado net income is:
The tax is:
$50,000.00 or less
5% of the Colorado net income
Over $50,000.00
$2,500.00 plus 5.4% of the excess Colorado net income over $50,000.00
(D)
For income tax years commencing on or after July 1, 1990, but before July 1, 1991:
If the Colorado net income is:
The tax is:
$50,000.00 or less
5% of the Colorado net income
Over $50,000.00
$2,500.00 plus 5.3% of the excess Colorado net income over $50,000.00
(E)
For income tax years commencing on or after July 1, 1991, but before July 1, 1992:
If the Colorado net income is:
The tax is:
$50,000.00 or less
5% of the Colorado net income
Over $50,000.00
$2,500.00 plus 5.2% of the excess Colorado net income over $50,000.00
(F)
For income tax years commencing on or after July 1, 1992, but before July 1, 1993:
If the Colorado net income is:
The tax is:
$50,000.00 or less
5% of the Colorado net income
Over $50,000.00
$2,500.00 plus 5.1% of the excess Colorado net income over $50,000.00
(G)
For income tax years commencing on or after July 1, 1993, but prior to January 1, 1999, five percent of the Colorado net income;
(H)
For income tax years commencing on or after January 1, 1999, but prior to January 1, 2000, four and three-quarters percent of the Colorado net income;
(I)
Except as otherwise provided in section
39-22-627
, for income tax years commencing on or after January 1, 2000, but before January 1, 2020, four and sixty-three one hundredths percent of the Colorado net income;
(J)
Except as otherwise provided in section
39-22-627
, for income tax years commencing on or after January 1, 2020, but before January 1, 2022, four and fifty-five one-hundredths percent of the Colorado net income.
(K)
Except as otherwise provided in section
39-22-627
, for income tax years commencing on or after January 1, 2022, four and forty one-hundredths percent of the Colorado net income.
(II)
For purposes of this paragraph (d), income from sources within Colorado shall be determined in accordance with the provisions of this part 3 and includes income from tangible or intangible property located or having a situs in this state and income from any activities carried on in this state, regardless of whether carried on in intrastate, interstate, or foreign commerce. In the case of a C corporation which is a component member of a controlled group of corporations as defined in section 1563 (a) of the internal revenue code, the sum of the Colorado net incomes of all the component members of the controlled group, but not the losses of each component member thereof, shall be used in computing the tax bracket for the controlled group. The tax bracket for the controlled group may be allocated between or among the component members thereof as agreed to by such members. If such an agreement is not reached, the executive director shall allocate the tax bracket based on the ratio of the Colorado net income of each component member to the total Colorado net incomes of all component members.
(1.1)
For income tax years commencing on or after January 1, 1981, but before January 1, 1982, the tax imposed by paragraph (b) of subsection (1) of this section shall be reduced in accordance with the following table:
If the Colorado net income is:
The reduction is:
Not over $25,000.00
1% of the Colorado net income
Over $25,000.00 but not over $50,000.00
$250.00 plus 0.5% of the excess over $25,000.00
Over $50,000.00
$375.00
(1.2)
For income tax years commencing on or after January 1, 1982, but before January 1, 1983, the tax imposed by paragraph (b) of subsection (1) of this section shall be reduced in accordance with the following table:
If the Colorado net income is:
The reduction is:
Not over $25,000.00
1% of the Colorado net income
Over $25,000.00 but not over $75,000.00
$250.00 plus 0.5% of the excess over $25,000.00
Over $75,000.00
$500.00
(1.3)
For income tax years commencing on or after July 1, 1986, but before July 1, 1987, the tax imposed by paragraph (c) of subsection (1) of this section shall be reduced in accordance with the following table:
If the Colorado net income is:
The reduction is:
Not over $50,000.00
.75% of the Colorado net income
Over $50,000.00 but not over $200,000.00
$375.00 plus .5% of the excess over $50,000.00
Over $200,000.00
$1,125.00
(1.4) and (1.5)
Repealed.
(2)
(a)
For income tax years commencing prior to January 1, 2023, any corporation which is required by the terms of this article 22 to file a return, and whose only activities in Colorado consist of making sales, and which does not own or rent real estate within the state of Colorado, and whose annual gross sales in or into this state amount to not more than one hundred thousand dollars may elect to pay a tax of one-half of one percent of its annual gross receipts derived from sales in or into Colorado in lieu of paying an income tax.
(b)
This subsection (2) is repealed, effective July 1, 2025.
(3)
(a)
As used in this section:
(I)
"Charitable organization" means a charitable organization exempt from federal income taxation under the provisions of the internal revenue code.
(II)
"Crop" means an agricultural crop, including but not limited to grains, fruits, and vegetables, which is usable as food for human beings.
(III)
"Crop contribution" means a contribution of a crop or portion of a crop to a charitable organization by a taxpayer engaged in the trade or business of farming or processing of a crop.
(IV)
"Livestock" means cattle, swine, poultry, or other animals raised for profit and usable as food for human beings.
(V)
"Livestock contribution" means a contribution of livestock to a charitable organization by a taxpayer engaged in the trade or business of raising or processing of livestock.
(VI)
"Most recent sale price" means an amount equal to the price which the taxpayer would have received for the crop or livestock contributed, determined as if the crop or livestock had been sold on the date of the most recent sale of such a crop or livestock and at the same price per unit as the crop or livestock which was sold on that date.
(VII)
"Wholesale market price" means the average wholesale market price for the crop or livestock contributed in the nearest regional market during the month in which the contribution is made, determined without consideration of grade or quality of the crop or livestock and as if the quantity of the crop or livestock contributed were marketable.
(b)
For income tax years commencing prior to January 1, 2023, there shall be allowed to taxpayers, as a credit with respect to the income taxes imposed by this part 3, an amount equal to twenty-five percent of the wholesale market price or twenty-five percent of the most recent sale price of crop contributions or livestock contributions, or both, made to a tax-exempt charitable organization. Credit, as provided for in this subsection (3), may not exceed one thousand dollars per tax year.
(c)
Unused portions of such credit may be carried forward to subsequent tax years as credit against income taxes due for those years. However, such credit must be used within five years of the end of the tax year in which the contribution was made.
(d)
The credit under this section is available only if the following conditions are met:
(I)
The crop is harvested or the livestock is slaughtered by or on behalf of the donee charitable organization;
(II)
The use of the crop or livestock by the donee charitable organization is related to the purpose or function constituting the basis for the organization's tax-exempt status;
(III)
The crop or livestock is not transferred by the donee charitable organization in exchange for money, other property, or services. This condition shall not apply in those cases where the donee charitable organization functions as a clearinghouse for distribution, without expectation of remuneration, of such crops or livestock, or both, to other charitable organizations. These secondary donees shall be subject to the provisions of this section in the same measure as if the contribution were received by that tax-exempt charitable organization directly from the original donor.
(IV)
The taxpayer and any subsequent donors shall receive from the donee charitable organization a written statement declaring that its use and disposition of the crop or livestock will be in accordance with this section;
(V)
No taxpayer who donates items of food to a tax-exempt charitable organization for use or distribution in providing assistance shall be liable for damages in any civil action or subject to prosecution in any criminal proceeding resulting from the nature, age, condition, or packaging of such crop contributions or livestock contributions, or both. However, the exemption shall not apply to the willful, wanton, or reckless acts of donors which result in injury to the recipients of such contributed foods.
(e)
This subsection (3) is repealed, effective July 1, 2029.
Amended by 2022 Ballot Proposition 121, passed by voters in 11/8/2020 election, effective upon official proclamation by governor.
Amended by 2022 Ch. 145, § 4, eff. 8/10/2022.
Amended by 2020 Ballot Proposition 116, passed by voters in 11/3/2020 election, eff. upon proclamation of govenor (12/31/2020).
R&RE, p. 768, § 1.C.R.S. 1963:§ 138-1-35. L. 69:P. 1129, § 2. L. 81:(1) amended, (1.1), (1.2), (1.3), (1.4), and (1.5) added, p. 1872, § 9, effective June 29. L. 82:(3) added, p. 564, § 2, effective April 22. L. 83:(1) and (1.1) to (1.5) amended, p. 1516, § 2, effective March 22; (1) and (1.3) to (1.5) amended, p. 2096, § 3, effective October 13. L. 85:(1) and (1.3) to (1.5) amended, p. 1265, § 3, effective May 30. L. 86:(1) amended, (1.3) and (1.4) R&RE, and (1.5) repealed, pp. 1117, 1118, 1120, §§ 14, 15, 22, effective July 1. L. 86, 2nd Ex. Sess.:(1.3) and (1.4) amended, p. 73, § 1, effective August 15. L. 87:(1)(b) and (1)(c) amended, (1)(d) and (3) R&RE, and (1.4) repealed, pp. 1438, 1439, 1457, §§ 7, 8, 31, effective June 22; (1)(d)(I)(A) amended, p. 1590, § 70, effective July 10. L. 89:(1)(d)(II) amended, p. 1499, § 1, effective 7/1/1990. L. 92:(1)(a) to (1)(c), IP(1)(d)(I), and (1)(d)(II) amended, p. 2266, § 7, effective April 16. L. 99:(1)(d)(I)(G) amended and (1)(d)(I)(H) added, p. 1376, § 2, effective August 4. L. 2000:(1)(d)(I)(H) amended and (1)(d)(I)(I) added, p. 1414, § 3, effective August 2. L. 2005:(1)(d)(I)(I) amended, p. 1361, § 2, effective June 6.Initiated 2020:(1)(d)(I)(I) amended and (1)(d)(I)(J) added, Proposition 116, effective upon proclamation of the Governor, effective 12/31/2020.
Subsection (2) of this section implements the requirements of Article III, Section 2, of the Multistate Tax Compact, §
24-60-1301
.
Subsections (1)(d)(I)(I) and (1)(d)(I)(J) were amended by initiative in 2020. The vote count on Proposition 116 at the general election held November 3, 2020, was as follows:
FOR: 1,821,702
AGAINST: 1,327,025
This section is set out more than once due to postponed, multiple, or conflicting amendments.