Colorado

Contaminated Land Redevelopment Credit - DR 0349

Understanding the Benefits and Requirements

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Business Tax Specialist

Tax Expert

4 min read
Published on 4 months ago
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Contaminated Land Redevelopment Credit - DR 0349

The Contaminated Land Redevelopment Credit, reported on Form DR 0349, allows eligible taxpayers in Colorado to claim a tax credit for qualified expenditures incurred in remediating contaminated land. This credit is designed to encourage environmental cleanup and redevelopment of polluted properties, contributing to community revitalization and public health.

Eligibility and Purpose

  • Taxpayers must be involved in the remediation of contaminated land located in Colorado.
  • Qualified expenditures include costs directly related to cleaning up or remediating the contaminated site.
  • The credit is available to individuals, corporations, partnerships, and other entities filing Colorado state income tax returns.

How to Claim the Credit

To claim the Contaminated Land Redevelopment Credit, taxpayers must complete Form DR 0349 (Remediation of Contaminated Land Credit Use Schedule). This form is part of the Colorado state tax return process and is used to report the amount of credit available and the amount applied against tax liability.

When filing through OLT (Online Taxes) software, users can add Form DR 0349 by navigating to the State section, selecting Colorado, and choosing the Credits section. Then, click "Start or Revisit" next to Form DR 0349 and follow the on-screen instructions.

Reporting Requirements

  • Column A: Enter the amount of credit available.
  • Column B: Enter the amount of credit you will apply against your tax liability for the current tax year.

Taxpayers must ensure that all documentation related to the remediation project is retained and may be required for audit purposes. The form should be completed accurately to reflect actual expenditures and eligible credit amounts.

Additional Notes

While Form DR 0349 is specifically for claiming the credit, taxpayers may also need to reference related forms such as DR 0348T (Remediation of Contaminated Land Credit Transfer Schedule) if transferring credits to another party. Always verify eligibility and requirements with official Colorado Department of Revenue resources.

Source:

Form DR 0349 (Remediation of Contaminated Land Credit Use Schedule)

Form DR 0348T (Remediation of Contaminated Land Credit Transfer Schedule)

Form DR 1370 (General Credit Schedule)

Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions. OLT (Online Taxes) provides guidance based on retrieved context but does not guarantee accuracy for individual cases.

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Key Takeaways

  • Understanding tax deductions can significantly reduce your tax liability
  • Keep detailed records of all tax-related expenses and documents
  • Consult with a tax professional for complex situations

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