1.Firstfilloutyourfederalincometaxreturn—U.S.Form1120.YouwillneedinformationfromyourfederalreturntocompleteyourColoradoreturn.

2.Ifyouowethestate,makeyourcheckormoneyorderpayabletotheColoradoDepartmentofRevenue.Pleaseprintthecorporation’sColoradoaccountnumberand“2010Form112”onthecheckormoneyorder.

3.MailthereturntotheColoradoDepartmentofRevenue,Denver,Colorado80261-0006.Returnsareduethreeandone-halfmonthsafterthecloseofthetaxableyear.

ColoradoCcorporationincometaxreturn,Form112Corporationcreditschedule,Form112CRPaymentvoucherforextensionoftimeforfiling,DR0158CPaymentvoucherforreturnpayment,DR0900C

C Corporation 2010 inCoME taX

ForMS anD inStrUCtionS

(11/9/10)

Corporation Electronic FilingFor information, see www.revenue.state.co.us/corporationefile

Colorado Online Tax PaymentsFor information, see www.colorado.gov/paytax

Coloradoincometaxreturnsareduetobefiledthreeandone-halfmonthsafterthecloseofthetaxyear.

Anautomaticsix-monthextensionoftimeforfilingtheColoradocorporationincometaxreturnisallowedforalltaxpayers.However,anextensionoftimetofileisnotanextensionoftimetopaythetax.Ifatleast90percentofthenettaxliabilityisnotpaidbytheoriginalduedateofthereturn,penaltyandinterestwillbeassessed.If90percentormoreofthenettaxliabilityispaidbytheoriginalduedateofthereturnandthebalanceispaidwhenthereturnisfiledbythelastdayoftheextensionperiod,onlyinterestwillbeassessed.

Ifaftertheoriginalduedateofthereturnitisfoundthattheamountpaidisinsufficienttomeetthe90percentrequirement,additionalpaymentshouldbemadeassoonaspossibletoreducefurtheraccumulationofpenaltyandinterest.Despitebeingmadeaftertheduedate,thispaymentshouldberemittedasanextensionpayment.

AfederalextensionoftimeforfilingwillnotbeacceptedforColoradopurposes.

Besuretoroundyourpaymenttothenearestdollar.Theamountonthecheckandtheamountenteredonthepaymentvouchermustbethesame.Thiswillhelpmaintainaccuracyinyourtaxaccount.

onlinE taX payMEntSYoumaymakeyourextensionpaymentbyusinganecheckorcreditcardatwww.colorado.gov/paytax. Pleasenotethereisanadditionalfeeifyoudecidetousethiselectronicpaymentmethod.ThisfeeispaidtoathirdpartywhoprovidestheseservicesforColorado.gov.Taxpaymentsremittedviaecheck,adirectdebitfromyourcheckingaccount,willbesubjecttoa$1.00administrativeprocessingfee.Theprocessingfeeforcreditcardtransactionsis2.25%ofthetaxpaymentmade,plusanadditional$0.75pertransaction.

Ifpayingbycheck,submitDR0158Cwithpaymentto:

ColoradoDepartmentofRevenue, Denver,Colorado80261-0008.

Do not SUbMit Dr 0158C withoUt a payMEnt.

EXtEnSion oF tiME For Filing a ColoraDo C Corporation inCoME taX rEtUrn

DETACH FORM ON THIS LINE

rEtUrn only thE lowEr portion oF thiS pagE with yoUr payMEnt

(0029) DR0158C(10/01/10)ColoraDo DEpartMEnt oF rEVEnUE

www.TaxColorado.com

2010 payment Voucher for Extension of time for Filing a Colorado C Corporation income tax return 70

ReturnthisvoucherwithcheckormoneyorderpayabletotheColoradoDepartmentofRevenue,Denver,Colorado80261-0008.WriteyourColoradoAccountNumberand“2010DR0158C”onyourcheckormoneyorder.Donotsendcash.Enclose,butdonotstapleorattach,yourpaymentwiththisvoucher.Fileonlyifyouaremakingapayment.CorporationName ColoradoAccountNumber

Address FederalEmployerIdentificationNumber

City State ZIP

iF no payMEnt iS DUE, Do not FilE thiS ForM. TheStatemayconvert your check toaone timeelectronicbanking transaction.Yourbankaccountmaybedebitedasearlyas the sameday receivedbytheState.Ifconverted,yourcheckwillnotbereturned.Ifyourcheckisrejectedduetoinsufficientoruncollectedfunds,theDepartmentofRevenuemaycollectthepaymentamountdirectlyfromyourbankaccountelectronically.

AmountofPayment

$.00(Do not write in space below) (08)

For the calendar year 2010 or the fiscal year: Start Date: ___________________, 2010, End Date: __________________, 20___.

Page3

DETACH FORM ON THIS LINE

rEtUrn only thE lowEr portion oF thiS pagE with yoUr payMEnt

(0021) DR0900C(10/01/10) ColoraDo DEpartMEnt oF rEVEnUE

www.TaxColorado.com

2010 C Corporationincome tax payment Voucher 70

For the calendar year 2010 or the fiscal year: Start Date: ___________________, 2010, End Date: __________________, 20___.ReturnthisvoucherwithcheckormoneyorderpayabletotheColoradoDepartmentofRevenue,Denver,Colorado80261-0008.WriteyourColoradoAccountNumberand“2010Form112”onyourcheckormoneyorder.Donotsendcash.Enclose,butdonotstapleorattach,yourpaymentwiththisvoucher.Fileonlyifyouaremakingapayment.CorporationName ColoradoAccountNumber

Address FederalEmployerIdentificationNumber

City State ZIP

iF no payMEnt iS DUE, Do not FilE thiS ForM. TheStatemayconvert your check toaone timeelectronicbanking transaction.Yourbankaccountmaybedebitedasearlyas the sameday receivedbytheState.Ifconverted,yourcheckwillnotbereturned.Ifyourcheckisrejectedduetoinsufficientoruncollectedfunds,theDepartmentofRevenuemaycollectthepaymentamountdirectlyfromyourbankaccountelectronically.

AmountofPayment

$.00(Do not write in space below) (08)

UseDR0900Cbelowtosubmityourpaymentifyou:• fileusinganyelectronicfilingmethod,• fileareturncontainingabarcode,• orare,forsomeotherreason,sendingyour

paymentseparatefromyourreturn. Besuretoroundyourpaymenttothenearestdollar.

Theamountonthecheckandtheamountenteredonthepaymentvouchermustbethesame.Thiswillhelpmaintainaccuracyinyourtaxaccount.

Do notsendanothercopyofyourtaxreturnwithyour paymentbecausetheDR0900Ccontainsalltheinformationrequiredtomatchyourpaymentwithyourreturn.

Rather than mailing a check, you can nowpayusinganelectroniccheckorcreditcardat www.colorado.gov/paytax

Thisonlineserviceincludesanadministrativefee thatallowsColorado.govtodeliverthisandotherimportantservices.ThisfeeispaidtoathirdpartythatprovidestheseservicesforColorado.govatlittleornocosttothetaxpayersofColorado.Forcreditcardtransactions,theadministrativeprocessingfeeistheamountduemultipliedby2.25%plusanadditional$0.75.However,ifyouchoosetopaywithcashintheformofanecheck,theadministrativeprocessingfeeisdiscountedto$1.00pertransaction.

Filing Requirements:Every corporation doing business in Colorado or deriving incomefrom Colorado sources must file a corporation income tax returnwithColorado.Anycorporation that isexempt from federal incometaxisexemptfromColoradoincometaxandfromfilingaColoradoincometaxreturnexceptthatitshallnotbesoexemptifitmustfileafederalreturnofunrelatedbusinessincome.Anyinsurancecompanysubjecttothetaximposedongrosspremiumsby§10-3-209,C.R.S.isexemptfromtheColoradoincometaxandfromfilingColoradoincome taxreturns.Time and Place for Filing:Returnsaredueonthe15thdayofthefourthmonthfollowingthecloseofthetaxableyear.Acorporationisgrantedanautomaticsixmonthextensionof timeforfiling.SeeDR0158Cformore informationon anextension.Mailyourreturnto:ColoradoDepartmentofRevenue,Denver,Colorado80261-0006.Declaration of Estimated Tax:EveryCcorporationsubject totheColoradoincometaxmustfilea

declarationofestimatedincometax,Form112EP,ifitstaxliabilityisexpectedtoexceed$5,000plusestimatedcredits.Additional Information Available:TheColoradoTaxInformationIndex,whichprovideseasyaccesstoforms, FYIs, statutes, regulations and other information organizedbysubject,isavailableatwww.TaxColorado.comoryoucancallforinformationat(303)238-SERV(7378).Accounting Period and Method:Thecorporation’saccountingperiodandmethodforColoradoincometaxpurposesmustbethesameasforfederalincometaxpurposes.Colorado Account Number:TheColoradoaccountnumberisan8-digitnumberthatmustbeincludedinadditiontothefederalemployeridentificationnumber.TheColoradoincometaxaccountnumberisthesameasthecorporation’ssalestaxorwagewithholdingaccountnumber.Section A: Apportionment Of Income:Acorporationdoingbusinessinmorethanonestatemustapportionitstaxableincometoanystatesinwhichthecorporationisdoingbusiness.

inStrUCtionS For 2010 ColoraDoC Corporation inCoME taX rEtUrn, ForM 112

(S CorporationS FilE ForM 106)

Page4

Thisensurestaxispaidtothestateinwhichtheincomeisearnedandtaxable. 59.Incomeisgenerallyapportionedbaseduponthesinglesalesfactor,amethodnewtoColoradoin2009:Corporationsmay not apportionincome using either the two or three factormethods allowed in prioryears.not apportioning income —ACcorporationdoingbusinessonlyinColoradowillcompute its taxon100percentof theColoradotaxableincome.Single Sales Factor —Allbusinessincomemustbeapportionedusingasingle factor: sales.Nonbusiness incomemayeitherbedirectlyallocated to theappropriatestateor treatedasbusinessincome,subjecttothesinglesalesfactorapportionment.CompleteandattachScheduleSFtoyourreturnifyouareapportioningincomeusingthesinglesalesfactorapportionmentmethod.gross receipts tax —ACcorporationthatperformsnoColoradoactivitiesotherthanmakingsales,doesnotownorrentrealestateinColorado,andgeneratesannualgrosssalesinColoradoof$100,000orlessmayelecttopayataxofone-halfpercentoftheannualgrossreceiptsderivedfromthesalesinColoradoinlieuofpayingthenormalincometax.Enterannualgrossreceiptsonline16,andthe.5%taxonline17.Enter“grossreceiptstax”onthedottedlineonlines16and17. 58.other apportionment Methods —IftheapportionmentprovisionsdonotfairlymeasuretheColoradosourceincome,thecorporationmayrequest,ortheDepartmentmayrequire,analternativemethodtobeused.Section B: Separate, Consolidated Or Combined Filing:TherearefourpossiblefilingalternativesforCcorporations.Thealternativesareseparate,consolidated,combined,andcombined/consolidatedfiling. 60.Separate Filing —Asinglecorporation,evenifitisamemberofanaffiliatedgroup,mayelecttofileaseparatereturn.Asinglecorporationmaynotfileaseparatereturnifitelectstobepartofaconsolidatedreturn,orisrequiredtobeincludedinacombinedfiling.Consolidated Filing —Membersofanaffiliatedgroupofcorporations,asdefinedin§1504oftheInternalRevenueCode,mayelecttofileaconsolidatedColoradoincometaxreturn.However,onlymembersoftheconsolidatedgroupthataredoingbusinessinColoradocanbeincludedintheColoradoconsolidatedfiling.Anelectiontofileaconsolidatedreturnisbindingforfouryearsand

requirestheconsentofthemembersoftheaffiliatedgroupthatweredoingbusinessinColorado.Themakingofaconsolidatedreturnshallbeconsideredsuchconsent.

Example: P Company, a parent corporation filing a federalconsolidated return, has four subsidiaries,A, B, C, and D.TheparentandthefirstthreesubsidiariesalldobusinessinColorado.DdoesbusinessonlyinNebraska.PCompanyanditssubsidiaries,A,BandC,mayelecttofileaconsolidatedColorado income tax return. D may not be part of the consolidatedreturn.

Combined Filing—Anaffiliatedgroupofcorporations,asdefinedin§39-22-303,C.R.S.thatmeetsthreeormorepartsofthesix-partintercompanybusinessrelationshiptestforthecurrentyearandtheprecedingtwoyears,mustfileacombinedreport.Combined/Consolidated Filing–Ifanaffiliatedgroupfilingacombinedreporthasamemberwhofilesafederalconsolidatedreturnwithanothercorporation,andthatothercorporationisdoingbusinessinColoradobutisnoteligibletobeincludedinthecombinedreport,theaffiliatedmemberscanelecttofileacombined/consolidatedfiling.

Example: PCompany, a parent corporation filing a federalconsolidatedreturn,hasfoursubsidiaries,A,B,C,andD.PandthefirstthreesubsidiariesalldobusinessinColorado.AwasacquiredonJanuary1,2010andDdoesbusinessonlyinNebraska.PCompanymeetsthesix-part test forfilingacombinedreportwithB,C,andD.Thus,P,B,C,andDmustfileacombinedreport.A,however,doesnotqualify for thecombinedreportbecauseithasnotbeenownedfortherequisitetwoyears.PCompanymayelecttofileaconsolidatedreturnwithA.Thus,Pwillbefilingacombined/consolidatedreturn:combinedwithB,C,andD,andconsolidatedwithA.

Federal Taxable Income:LINE 1:Enter the federal taxable income (or loss) from federal

Form1120.LINE 2:Enterthefederaltaxableincome,totheextentincludedinline1,

ofcorporationsthatarenotincludedinthisconsolidatedand/or combinedreturn.

LINE 3:Reflectsthefederaltaxableincomeofthefederalpro-formareturnforthecompaniesincludedintheColoradoreturn.

Additions: LINE 4:Enteranyfederalnetoperatinglossdeductionclaimedin

thecomputationofthefederaltaxableincome. 19.

Page5

LINE 5:EnteranyColoradoincometaxclaimedasadeductioninthecomputationofthefederaltaxableincome.

LINE 6: Enterallotheradditions: 58. • Al l interest income ( less bond premium

amortization)of thecorporation fromstateormunicipalobligationsthatisnotincludedinfederaltaxableincome.DonotincludeinterestincomefromanybondorotherobligationoftheStateofColoradoorapoliticalsubdivisionthereofissuedonorafterMay1,1980.TheinteresttobeenteredshallbenetofanyexpenserequiredtobeallocatedtheretobytheInternalRevenueCodeforfederalincometaxpurposes.

52. • Anyincome,warprofits,orexcessprofitstaxespaidor

accrued toany foreigncountryor toanypossessionoftheUnitedStatesthatwereclaimedasadeductiononthefederalreturn. 58.

• Any charitable contribution deduction claimed in 2009forthedonationofaconservationeasementthatqualified for the gross conservation easement credit.

39.Subtractions:LINE 8:Enter,totheextentincludedinfederaltaxableincome,any

UnitedStatesgovernmentbondinterestandanyinterestordividendincomeonobligationsorsecuritiesofanyauthority,commission,or instrumentalityof theUnitedStates to theextentsuchinterestordividendincomeisexemptfromstatetaxationbyfederallaw. 20.

LINE 9:Enter,totheextentincludedinfederaltaxableincome,thatpartof foreign income thatqualifiesasexcludable foreignsource income.Excludable foreignsource incomemeanstaxable income from sources without the United Statesasused in section862of the InternalRevenueCodeas determinedbelow:

• Ifforfederalincometaxpurposesthecorporationhaselectedto claim foreign taxespaid or accruedasa deduction,excludableforeignsourceincomeshallbeanamountequaltosuchdeduction.

• Ifforfederalincometaxpurposesthecorporationhaselectedtoclaimforeigntaxpaidoraccruedasacredit,excludableforeignsourceincomeshallbeanamountequaltoforeignsourceincome(excludingsection78dividendgrossup)multipliedbyafraction,thenumeratorofwhichisthefederalforeign tax credit, and thedenominator ofwhich is theforeignsourceincome(includingsection78dividendgrossup)timestheeffectivefederalcorporationincometaxrate(federalcorporateincometaxdividedbyfederalcorporate taxableincome).Excludableforeignsourceincomemaynotexceedtotalforeignsourceincomeexcludingsection78dividendgrossup.Foreignsourceincomefromaforeigncorporationwithinanaffiliatedgroupofcorporationsshallbedeterminedwithoutregardtosection882(a)(2)oftheInternal RevenueCode.

Excludable foreign source income shall also be omittedin determining the Colorado sales factor (Schedule SF) . 58.

LINE 10: Enter,totheextentincludedinfederaltaxableincome,theamountofcapitalgainincomeearnedfromthesaleofrealortangiblepersonalpropertylocatedinColorado,thatwasacquiredonorafterMay9,1994andheldcontinuouslyforatleastfiveyearspriortothedateofthetransactionfromwhich

thecapitalgainsarise.YoumustattachformDR1316tothereturntoexplainhowtheseassetsqualifyforthesubtraction.

15.LINE 11: Enterallothersubtractions. 58. • Totheextentincludedinfederaltaxableincome,anyrefund

ofColoradoincometax. • Anyamountincludedinfederaltaxableincomebyreason

of thegross-upprovisionsof section78of the InternalRevenueCode.

• TheamountofanysalaryorwageexpensenotallowedasadeductiononthefederalincometaxreturnduetotheprovisionsoftheIndianemploymentcredit,workopportunitycredit,empowermentzoneemploymentcredit,orphandrugcredit,creditforincreasingresearchactivities,employeeretentioncredit,welfare-to-workcreditorminerescueteamtrainingcredit.

Taxable Income:LINE 13: Enter the net amount of line 7 minus line 12. This is

the modified federal taxable income that will be theColorado taxable income to be entered on line 14 forthose corporations not permitted to apportion incomeaway from Colorado. For those corporations that doapportionincome,entertheamountfromline13online1ofScheduleSF.

LINE 15: Enter the Colorado net operating loss deduction. TheColorado net operating loss deduction is computedin the same manner as is the federal net operatinglossdeductionexcept that in thecaseofacorporation apportioningincome,itisthatpartofthefederalnetoperatingloss,asmodified,thatisfromColoradosources.Coloradooperatinglossesmaybecarriedforward20yearsfortaxyearsbeginningonorafterAugust6,1997.Theymaynotbecarriedback.Federal limitationsoncarryover lossesbetweenpredecessorandsuccessorcorporationsapplyforColoradoincometaxpurposes. 19.

taxLINE 17: TheColoradotaxrateiscurrently4.63%.Thisrepresents

areductionintheratefromthe1999rateof4.75%andthe1998rateof5%.

CreditsLINE 18: Enterthenon-refundablecreditsfromline72,Form112CR.LINE 20: Ifthecorporationisrequiredtorecapturefederalinvestment

creditwithrespecttoColoradoassets,arecaptureofthe“old”Coloradoinvestmentcreditmayberequired.Includeanyinvestmentcreditrecapture,historicpropertypreservationcreditrecapture,lowincomehousingcreditrecaptureoranyothercreditrecaptureonthisline.Attachascheduletothereturndetailingthecomputationoftherecaptureamount.

LINE 22: Enterallprepaymentcredits. • Anyestimatedtaxpaymentsmadefor2010, • Thatpartofthe2009overpayment,ifany,thatwasapplied

to2010, • Anyamountpaidwitha2010extensionoftimeforfilingvoucher, • AnyColoradotaxwithheldonthesaleofColoradoreal

estateduringthetaxyearonformDR1079.LINE 23: Enterthealternativefuelvehiclecreditgeneratedin2010,

fromline73,Form112CR.Thiscreditisrefundableforcreditsgeneratedin2010(canexceedthenettaxonline19).Thiscreditisnotrefundableforcreditscarriedforward

Page6

fromprioryears.Ifthecorporationiscarryingforwardanalternativefuelvehiclecreditfromits2009return,entertheamountonline70,Form112CRandincludeonline18Form112.See Income9.

penalties and interestLINE 25: Thedelinquent filingorpaymentpenalty is5%of the

balanceoftaxdueforthefirstmonthorfractionthereofplusanadditional1/2%foreachadditionalmonthorfractionthereof,notexceeding12%intheaggregate.Theminimumpenaltyis$5.00.

LINE 26: Interestaccruesonanybalanceoftaxdueduring2011atarateof3%perannumexceptthatwithrespecttoanyassessmentnotpaidwithin30daysofdateofbilling,interestwillbedueatan6%annualrate.

LINE 27: IfthecorporationisassessingitselfanestimatedtaxpenaltyattachacopyofDR0205tothereturn.

Includepenaltyandinterestamountsfromlines25-27intheamountowedonline28.

refundLINE 30: Entertheamountofanyoverpaymentyouwishtohave

creditedtothecorporation’s2011estimatedtaxes.LINE 31: Entertheamountofanyoverpaymentyouwishtohave

refunded.

TheDepartmentcandeposityourrefunddirectlyintoyouraccountataU.S.bankorotherfinancialinstitution(suchasamutualfund,brokeragefirm,orcreditunion)intheUnitedStates.

Direct Deposit?•Fasterrefund•Saferrefund—Nochecktogetlost.•Convenient—Notriptothebank. your return anD use Direct Deposit.

get your refund in two weeks.

how do i use Direct Deposit?Completetheroutingnumber,typeofaccountandaccountnumberboxesonline31.Therouting numbermustbeninedigits.Thefirsttwodigitsmustbe01through12or21through32.Onthesamplecheck,therout-ingnumber is123456780.Yourcheckmaystatethat it ispayablethroughabankdifferent from thefinancial institutionatwhichyouhaveyourcheckingaccount.Ifso,donotusetheroutingnumberonthatcheck.Instead,contactyourfinancial institutionforthecorrectroutingnumbertoenteronthisline.Theaccount numbercanbeupto17characters(bothnumbersandletters).Includehyphensbutomitspacesandspecialsymbols.Enterthenumberfromlefttorightandleaveanyunusedboxesblank.Onthesamplecheck,theaccountnumberis12312345.Donotincludethechecknumber.Youshouldcontactyourfinancial institutiontomakesureyourde-positwillbeacceptedandtoobtainthecorrectroutingandaccountnumbers.Thisisespeciallyimportantifyouwantyourrefunddepos-itedtoasavingsaccountatacreditunion.TheColoradoDepartment

ofRevenueisnotresponsibleforalostrefundifyouenterthewrongaccount information.Anyrefundclaimthat, foranyreason,cannotbedepositedintotheaccountspecifiedwillbeissuedandmailedincheckforminstead.Sections C–G: Corporate InformationEntertherequestedcorporateinformationonlinesCthroughG.paid preparer authorizationIfthecorporationwantstoallowtheColoradoDepartmentofRevenuetodiscusstheits2010taxreturnwiththepaidpreparerwhosenameappearsinthe“PersonorFirmPreparingReturn”areaforyour2010return,checkthe“Yes”box. Thisauthorizationappliesonly to theindividualwhose nameappears in the “Person or FirmPreparingReturn”areaofthecorporation’sreturn.Itdoesnotapplytothefirm,ifany,showninthatsection.Ifthe“Yes”boxischecked,thecorporationisauthorizingtheColoradoDepartmentofRevenuetocallthepaidpreparertoansweranyquestionsthatmayariseduringtheprocessingofthereturn.Thecorporationisalsoauthorizingthepaidpreparerto:•GivetheColoradoDepartmentofRevenueanyinformationthatismissingfromthereturn.

•CalltheColoradoDeptartmentofRevenueforinformationabouttheprocessingofthereturnorthestatusofanyrelatedrefundorpayment(s),and

•RespondtoColoradoDepartmentofRevenuenoticesaboutmatherrors,offsets,andreturnpreparation.

Thecorporationisnotauthorizingthepaidpreparertoreceiveanyrefundcheck,bindthecorporationtoanything(includinganyadditionaltaxliability),orotherwiserepresentthecorporationbeforetheColoradoDepartmentofRevenue.Theauthorizationwillautomaticallyendnolaterthantheduedate(excludingextensions)forfilingthecorporation’s2011taxreturn.If thecorporationwantstoexpandthepaidpreparerauthorization,completeformDR0145PowerofAttorneyforDepartmentAdministeredTaxMatters.If thecorporationwants torevoketheauthorizationbefore itends,sendawrittenstatementofrevocationtotheColoradoDepartmentofRevenueDenver,CO80261-0006.Thestatementofrevocationmustindicatethattheauthorizationisrevoked,listthetaxreturn,andmustbesignedanddatedbythecorporationorthepaidpreparer.SignaturesThelawrequiresthereturntobesignedunderthepenaltiesofperjurybythepresident,vice-president,treasurer,assistanttreasurer,chiefaccountingofficer,orotherofficerdulyauthorized toact. Incaseswherereceivers,trusteesinbankruptcy,orassigneesareoperatingthepropertyorbusinessofcorporations,suchreceivers,trustees,orassigneesshallmakereturnsforsuchcorporationsinthesamemannerandformascorporationsarerequiredtomakereturns.Changes in Federal incomeAnyadjustmentmadebyfederalamendedreturnsmustbereportedandtheColoradoincometaxadjustedaccordinglyonForm112X,theamendedcorporationincometaxreturn.Likewise,anyadjustmentsmadebytheInternalRevenueServicemustbereportedtoColoradoonForm112X.Ifthecorporationoperatesintwoormorestates,tosimplifytheamendedreturnfilingrequirement,thecorporationcanmailtherevenueagent’sreportseparately(mustnotbeattachedtothereturn)totheColoradoDepartmentofRevenue,Denver,Colorado80261-0006.IncludetheColoradoaccountnumberonthereport.Thestatuteoflimitationswillnotapplyifthetaxpayerfailstodiscloseanyadjustmentsmadeonfederalreturnsandfailstosubmitcopiesofthefederalagent’sreports.

Page7

DEPARTMENTALUSEONLY

(0023)2010 Form 112 Colorado State C Corporation income tax returnForthetaxyearbeginning ________________ ,2010,ending _______________ ,20_____.

Do not SEnD FEDEral rEtUrn, ForMS or SChEDUlES with thiS rEtUrn.

iF yoU Do not nEED a CorporatE taX booKlEt MailED to yoU nEXt yEar, ChECK thiS boX .........................................................................Ifyouareattachingastatementdisclosingalistedorreportabletransaction,checkthisbox .........................................................................

a. apportionment of income.Thisreturnisbeingfiledfor: (42)Acorporationnotapportioningincome; (43) Acorporationengagedininterstatebusinessapportioningincomeusingsingle-factorapportionment(AttachScheduleSF); (44) Acorporationengagedininterstatebusinessapportioningincomeunderspecialregulation; (45) AcorporationelectingtopayataxonitsgrossColoradosales; (47) Other,federalformfiled_____________________________________________________ b. Separate/Consolidate/Combined Filing.Thisreturnisbeingfiledby: Asinglecorporationfilingaseparatereturn; Anaffiliatedgroupofcorporationselectingtofileaconsolidatedreturn(Warning:suchelectionisbindingforfouryears). Ifyourelectionwasmadeinaprioryear,entertheyearofelectionhere:_____________(AttachScheduleC);

Anaffiliatedgroupofcorporationsrequiredtofileacombinedreturn(AttachScheduleC).; Anaffiliatedgroupofcorporationsrequiredtofileacombinedreturnthatincludesanotheraffiliated,consolidatedgroup(AttachScheduleC).

roUnD to thE nEarESt Dollar

1 FederaltaxableincomefromForm1120 .................................................................................................................... 1 .002Federaltaxableincomeofcompaniesnotincludedinthisreturn ............................................................................. 2 .003 Netfederaltaxableincome,line1minusline2 ........................................................................................................... 3 .00additions to federal taxable income

.004Federalnetoperatinglossdeduction ........................................................................................................................... 45Coloradoincometaxdeduction .................................................................................................................................... 5 .006Otheradditions,attachexplanation .............................................................................................................................. 6 .007Totaloflines3through6 .................................................................................................................................................. 7 .00Subtractions from federal taxable income

.008 Exemptfederalinterest.................................................................................................................................................. 89Excludableforeignsourceincome .............................................................................................................................. 9 .0010Coloradosourcecapitalgain(assetsacquiredonorafter5/9/94,heldfiveyears) ......................................... 10 .0011 Othersubtractions,attachexplanation ..................................................................................................................... 11 .0012Totaloflines8through11 .............................................................................................................................................12 .0013 Modifiedfederaltaxableincome,line7minusline12 ............................................................................................. 13 .0014Coloradotaxableincomebeforenetoperatinglossdeduction ........................................................................... 14 .0015Coloradonetoperatinglossdeduction ...................................................................................................................... 15 .0016Coloradotaxableincome,line14minusline15 ........................................................................................................ 16 .0017tax,4.63%oftheamountonline16 ......................................................................................................................... 17 .0018Totalnon-refundablecreditsfromline72,Form112CR(maynotexceedtaxonline17) ............................... 18 .0019Nettax,line17minusline18 ........................................................................................................................................ 19 .0020Recaptureofprioryearcredits ................................................................................................................................... 20 .00

NameofCorporation ColoradoAccountNumber

Address FederalEmployerI.D.Number

City State ZIP

Form112(11/09/10)ColoraDo DEpartMEnt oF rEVEnUEDENVER,CO80261-0006

Do not SEnD FEDEral rEtUrn, ForMS or SChEDUlES with thiS rEtUrn.Form 112 page 2

21 Totaloflines19and20 .............................................................................................................................................21 .0022 Estimatedtaxandextensionpaymentsandcredits .............................................................................................. 22 .0023Refundablealternativefuelvehiclecreditfromline73,Form112CR ................................................................ 23 .0024 Totaloflines22and23 .............................................................................................................................................24 .0025 Penalty,alsoincludeonline28ifapplicable ...................................................................................................... 25 .0026Interest,alsoincludeonline28ifapplicable ...................................................................................................... 26 .0027Estimatedtaxpenaltydue,alsoincludeonline28ifapplicable ................................................................... 27 .0028Ifamountonline21exceedsamountonline24,enteramountowed ........................................................ 28 .0029Overpayment,line24minusline21 .....................................................................................................................29 .0030Overpaymenttobecreditedtoestimatedtax ................................................................................................... 30 .0031 Overpaymenttoberefunded .................................................................................................................................. 31 .00

Type: Checking SavingsRouting number

Account number

MAIL TO AND MAKE CHECKS PAYABLE TO: ColoradoDepartmentofRevenue,Denver,CO80261-0006TheStatemayconvertyourchecktoaonetimeelectronicbankingtransaction.YourbankaccountmaybedebitedasearlyasthesamedayreceivedbytheState.Ifconverted,yourcheckwillnotbereturned.Ifyourcheckisrejectedduetoinsufficientoruncollectedfunds,theDepartmentofRevenuemaycollectthepaymentamountdirectlyfromyourbankaccountelectronically.

C. The corporation’s books are in care of:

Name TelephoneNumber

Address City State ZIP

D. business code number per federal return May theColoradoDeptartment of Revenuediscussthisreturnwiththepaidpreparershownbelow(seeinstructions)? Yes NoE. year corporation began doing business in Colorado

F. Kindofbusinessindetail:

g. HastheInternalRevenueServicemadeanyadjustmentsinthecorporation’sincomeortaxorhaveyoufiledamendedfederalincometaxreturnsatanytimeduringthelastfouryears? Yes NoIfYes,forwhichyear(s)? ______________________________________

DidyoufileamendedColoradoreturnstoreflectsuchchangesorsubmitcopiesoftheFederalAgent’sreports? Yes NoUnder penalties of perjury in the second degree, i declare that i have examined this return and to the best of my knowledge is true, correct and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

PersonorFirmpreparingreturn(name,ad-dressandtelephonenumber):

SignatureandTitleofOfficer Date

SChEDUlE SF—SinglE FaCtor apportionMEnt SChEDUlE 2010Do not SEnD FEDEral rEtUrn ForMS or SChEDUlES with thiS rEtUrn.

1 Totalmodifiedfederaltaxableincomefromline13,page1,Form112 ............................................................................... 1

bUSinESS inCoME apportionED to ColoraDo by USE oF thE rEVEnUE FaCtorDONOTINCLUDEFOREIGNSOURCEREVENUES MODIFIEDOUTONLINE9,PAGE1,FORM112 Colorado Total

2 Grosssalesoftangiblepersonalproperty ....................................................2

3 Grossrevenuefromservices........................................................................ 3

4 Grossrentsandroyaltiesfromrealproperty ............................................... 4

5 Grossproceedsfromsalesofrealproperty ................................................ 5

6 Taxableinterestanddividendincome ........................................................ 6

7 Gainfromthesaleofintangiblepersonalproperty ..................................... 7

8 Patentandcopyrightroyalties ..................................................................... 8

9 Revenuefromtheperformanceofpurelypersonalservices ..................... 9

10 Totalrevenue(totaloflines2through9ineachcolumn) ....................... ..10

11 Line10(Colorado)dividedbyline10(Total) ................................................................................... 11 %CoMplEtE linES 12 anD 15 only iF nonbUSinESS inCoME iS bEing DirECtly alloCatED. iF all inCoME iS bEing trEatED aS bUSinESS inCoME, EntEr 0 (ZEro) on linES 12 anD 15.

12 Lessincomedirectlyallocable (a)Netrentsandroyaltiesfromrealortangiblerealproperty .............

NONBUSINESS

INCOME

ONLY

(b)Capitalgainsandlosses .................................................................

(c)Interestanddividends .....................................................................

(d)Patentsandcopyrightroyalties .......................................................

(e)Othernonbusinessincome .............................................................

(f)Totalincomedirectlyallocable(addlines(a)through(e)) .............................................. 12

13 Modifiedfederaltaxableincomesubjecttoapportionmentbyformula,line1lessline12 .................................................. 13

14 IncomeapportionedtoColoradobyformula,line11timesline13 ...................................................................................... 14

15 Add income directly allocable to Colorado:

NONBUSINESS

INCOME

ONLY

(a)Netrentsandroyaltiesfromrealortangiblerealproperty .............................................

(b)Capitalgainsandlosses ..............................

(c)Interestanddividends ..................................

(d)Patentsandcopyrightroyalties ....................

(e)Othernonbusinessincome ..........................

(f)Totalincomedirectlyallocable(addlines(a)through(e)) ..................................................15

16 TotalincomeapportionedtoColorado,line14plusline15.Enteronline14,page1,Form112 ..........................................16 PursuanttoColoradoRegulation39-22-303.5.6,taxpayerelectstotreatnon-businessincomeasbusinessincomeforthetaxyear

ending__________,20____.

Do not SEnD FEDEral rEtUrn, ForMS or SChEDUlES with thiS rEtUrn.

D E I

NAMEANDADDRESSOFCORPORATIONC. FEDERAL EMPLOYER

IDENTIFICATION NUM-BER

NO.B. COLORADO IDENTIFICATION NUMBER

G. ChANgE IN OwN-

ERshIP % DURINg

TAxABLE PERIOD

(YEs/NO)

E. ChECk ( )

IF CORP. Is

INCLUDED IN

COMBINED

RETURN

H. % OF

OwNERshIP

CLOsE OF

TAxABLE

PERIOD

I. PRINCIPAL

BUsINEss ACTIVITY

1

D E F G H I

A B C

2%

D E F G H I

A B C

3%

D E F G H I

A B C

4%

D E F G H I

A B C

5%

D E F G H I

A B C

D E F G H I

A B C

6

7

%

%

(Parent)

photoCopy anD attaCh aDDitional pagES aS nEEDED

SChEDUlE C—ColoraDo aFFiliationS SChEDUlE

D. INTERCOMPANY BUsINEss RELATIONshIPs (sEE INsTRUCTIONs)

F. OwNED

BY CORP.

NUMBER

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

A B C

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

Do not SEnD FEDEral rEtUrn, ForMS or SChEDUlES with thiS rEtUrn.

D E F G H I

A B C

10%

D E F G H I

A B C

11%

D E F G H I

A B C

12%

D E F G H I

A B C

13%

D E F G H I

A B C

D E F G H I

A B C

14

15

%

%

photoCopy anD attaCh aDDitional pagES aS nEEDED

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

1. 2. 3.

4. 5. 6.

D E F G H I

A B C

9%

1. 2. 3.

4. 5. 6.

D E F G H I

A B C

8%

1. 2. 3.

4. 5. 6.

ScheduleCmustbecompletedifthecorporationforwhichthereturnisfiledowneda)morethan50percentofthestockofanothercorporationor,b)morethan50percentofthestockofthecorporationforwhichthereturnisfiledwasownedbyanothercorporation.Enterinformationforthecommonparentonline1.Lines2through15areforsubsidiarycorporations.Photocopyandattachadditionalsheetsifnecessary.Columns a through C:Enterthecorporation’sname,address,ColoradoIDnumberandfederalemployerIDnumber.Column D:Taxpayerswhoareaffiliatedcorporations,asdescribedabove,andwhohavemorethan20percentoftheirpropertyandpayrolllocatedwithintheUnitedStatesmustcompleteColumnD.Theblocks inColumnDarenumberedfromone(1) tosix(6)andcorrespondtothesixnumberedintercompanybusinessrelationshipsdescribedbelow.ForeachaffiliatelistedonScheduleC,markyes(Y)orno(N)intheblocksofColumnD, to indicatewhether the below describedintercompanybusinessrelationshipsdidordidnotexistduringthetaxyearandthetwoprecedingtaxyears.

intercompany business relationships:1.Is50percentormoreofthecorporation’sgross

receiptsfromsalesorleasestootheraffiliatesoris50percentormoreofthecorporation’scostofgoodssoldorleasedfromotheraffiliates?

2.Doesthecorporationreceive50percentormoreofthetotalannualvalueofeachoffiveormoreof the following services from other affiliates:advertisingandpublicrelations;accountingandbookkeeping;legal;personnel;sales;purchasing;

researchanddevelopment;insurance;employeebenefitprograms?Donotcountserviceswhichareprovidedat an “arm’s length charge.” (SeeU.S.TreasuryRegulation1.482(b)(3).)

3.Is20percentormoreofthecorporation’slong-termdebtowedtoorguaranteedbyotheraffiliates?Is20percentormoreofanyotheraffiliateslong-termdebtowedtoorguaranteedbythecorporation?

4.Does the corporation use patents, trademarks,servicemarks, logos, trade secrets, copyrightsor other proprietary materials owned by otheraffiliates? Does the corporation own patents,trademarks,servicemarks,logos,tradesecrets,copyrights,orotherproprietarymaterialsthatareusedbyotheraffiliates?

5.Are50percentormoreof themembersof thecorporation’sboardofdirectorsalsomembersoftheboardofdirectorsorcorporateofficersofotheraffiliates?

6.Are25percentormoreof thecorporation’s20(twenty) highest ranking officers alsomembersoftheboardofdirectorsorcorporateofficersofotheraffiliates?

Column E: ChecktheblockinColumnEifthecorporationisincludedinacombinedreport.Corporationsincludedinacombinedreportmusthaveansweredyes(Y)tothreeormoreofthe intercompany business relationships referred to inColumnD.Columns F through I:Entercorporation’sownernumber,whetherornottherewasachangeinownership,ownershippercentageandprincipalbusinessactivity.

inStrUCtionS For ForM 112Crpriority of CreditsThelawprovidesthatthenewInvestmentTaxCredit(ITC)is limitedtothetax liabilityremainingafter theoldITC.Otherwise, the taxpayer may choose the sequence inwhichthecreditsareclaimed.Particularattentionshouldbepaid to thecarrybackandcarryover featuresof thevariouscredits.the new investment tax CreditAnewColoradoITCisallowedinanamountequalto1percentof the totalqualified investmentasdeterminedundersection46(c)oftheinternalrevenuecodeinqualifiedpropertyasdefinedinsection48oftheinternalrevenuecode as such sections existed prior to the RevenueReconciliationActof1990. 11.ThenewITCisbasically10percentofwhatthefederalregularpercentageITCwouldbeifitwerestillineffect.ThenewITCislimitedto$1,000reducedbytheamountoftheoldITCclaimedforthesametaxyear.

AnyexcessnewITCremainingmaybecarriedforwardforaperiodofthreeyears.Itmaynotbecarriedbacktoanearlieryear.The newColorado ITC is allowed onlywith respect toassets locatedwithinColorado. Ifqualifyingproperty islocatedbothwithinandwithoutColoradoduringthetaxyear,thecreditshallbeapportionedbasedonthetimeofusageofsuchpropertyinColoradoduringthetaxyearascomparedwiththetotaltimeofusageofsuchpropertyeverywhereduringthetaxyearunlessthetaxpayercanjustifyamoreequitableapportionmentmethod.All InternalRevenueCodesection46 (assuchsectionexistedpriorto1990)restrictionsonqualifiedinvestmentapplyforpurposesofthenewITC.Forexample,onlyafractionofthebasisorcostofassetsthathaveausefullifeoflessthansevenyearsqualifiesforthecredit,only$150,000ofusedpropertymayqualifyforthecredit,andanyamountsexpensedundersection179oftheInternalRevenueCodedonotqualify.

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inStrUCtionS For SChEDUlE C

Form112CR(11/9/10)

ForM 112Cr ColoraDo Corporation CrEDit SChEDUlE 2010attach this form to your completed income tax return Form 112

Column(a) Column(b)1 Taxliabilityfromline17,Form112 .............................................................................................................. 1

a thE nEw inVEStMEnt taX CrEDit2$1,000minusamountonline56a ...............................................................................................................23 Currentyearqualifiedinvestment ................................................................................................................. 34One%oftheamountonline3 .....................................................................................................................45Newinvestmenttaxcreditcarriedoverfromprioryear ................................................................................56EnterinColumn(a)thetotaloflines4and5.EnterinColumn(b)thelesseroftheamount inColumn(a)ortheamountonline2 .......................................................................................................6a 6b

b EntErpriSE ZonE inVEStMEnt taX CrEDit7Smallerofamountonline1above,or$5,000 ..............................................................................................78 50%oftheamountonline1aboveinexcessof$5,000 .............................................................................89Totaloflines7and8 ......................................................................................................................................910Oldinvestmenttaxcredit,ifany,fromline56a .........................................................................................1011 Line9minusline10 .................................................................................................................................. 1112Qualifyingcurrentyearinvestment ..........................................................................................................1213 3%ofamountonline12 ........................................................................................................................... 1314Enterprisezoneinvestmenttaxcreditcarriedoverfromprioryear .........................................................1415EnterinColumn(a)thetotaloflines13and14.EnterinColumn(b)thelesseroftheamountinColumn(a)ortheamountonline11. ........................................................................................................................15a 15b

C EntErpriSE ZonE nEw bUSinESS FaCility EMployEE CrEDitS16Monthlyaverageofqualifiednewbusinessfacilityemployees ..................................................................................1617Numberofemployeesforwhichcredithaspreviouslybeenclaimed .........................................................................1718Increaseinqualifiedemployees,line16minusline17 ..............................................................................................1819Numberofemployeesonline18multipliedby$500 .................................................................................1920Numberofemployeesonline18inanenhancedruralenterprisezone

multipliedby$2,000...................................................................................................................................2021Numberofagriculturalprocessingemployeesonline18multipliedby$500 ............................................2122Numberofagriculturalprocessingemployeesonline18inanenhancedruralenterprisezonemultipliedby$500 .2223Employeecreditcarriedoverfromprioryear ............................................................................................2324Numberofhealthinsurancequalifiedemployees______multipliedby$200 ............................................2425EnterinColumn(a)thetotaloflines19through24.EnterinColumn(b)theamountfromColumn(a)

whichisbeingusedtooffset2010tax. ...................................................................................................25a 25bD ContribUtion to EntErpriSE ZonE aDMiniStrator CrEDit

26Currentyearcashcontributions.................................................................................................................2627Valueofcurrentyearin-kindcontributions ................................................................................................2728Totaloflines26and27 ..............................................................................................................................2829Thesmallerof$100,000or25%ofline28 ................................................................................................2930Limitationonin–kindcredit,50%ofline29 ...............................................................................................3031Allowablein–kindcredit,thesmalleroflines27or30 ...............................................................................3132Limitationoncashcredit,line29minusline31 .........................................................................................3233Allowablecashcredit,thesmalleroflines26or32 ...................................................................................3334Entereitherthetotaloflines31and33or$100,000,whicheverisless ...................................................3435Contributioncreditcarriedoverfromprioryear .........................................................................................3536EnterinColumn(a)thetotaloflines34and35.EnterinColumn(b)theamountfromColumn(a)whichis

beingusedtooffset2010tax ..................................................................................................................36a 36b

Taxpayer’sname ColoradoAccountNumber

Most credits entered on this form are non-refundable. Calculate and enter the total credit available in Column (a). Enter in Column (b) only the amount of the credit to be applied against this year’s tax liability. any difference in the amounts in Columns (a) and (b) for a given line that will be carried forward to 2011 must be entered at the end of this form.

ForM 112Cr 2010 ColoraDo Corporation CrEDit SChEDUlE pagE 2E EntErpriSE ZonE VaCant CoMMErCial bUilDing rEhabilitation CrEDit Column(a) Column(b)

37Qualifiedcurrentyearexpenditures........................................................................................................3738Smallerof$50,000or25%ofline37 .....................................................................................................3839Rehabilitationcreditcarriedoverfromprioryear....................................................................................3940EnterinColumn(a)thetotaloflines38and39.EnterinColumn(b)theamountfromColumn(a)whichis

beingusedtooffset2010tax .................................................................................................................40a 40bF EntErpriSE ZonE rESEarCh anD EXpEriMEntal CrEDit

41Qualifyingcurrentyearexpenditures ........................................................................................................4142Firstprecedingyearexpenditures .................................................................................4243Secondprecedingyearexpenditures ............................................................................4344Totaloflines42and43 ..................................................................................................4445One-halfoftheamountonline44 ..........................................................................................................4546Line41minusline45...............................................................................................................................4647 3%oftheamountonline46 .....................................................................................................................474825%oftheamountonline47 ...................................................................................................................484925%ofline50of2007Form112CR .......................................................................................................495025%ofline50of2008Form112CR .......................................................................................................505125%ofline47of2009Form112CR ........................................................................................................5152Excesscreditcarriedoverfromprioryear ..............................................................................................5253EnterinColumn(a)thetotaloflines48through52.EnterinColumn(b)theamountfromColumn(a)whichis

beingusedtooffset2010tax ................................................................................................................53a 53bg MiSCEllanEoUS EntErpriSE ZonE CrEDitS

54Enterprisezonejobtrainingcredit.EnterinColumn(b)theamountfromColumn(a)whichisbeingusedtooffset2010tax.IncludeinColumn(a)anyamountcarriedforwardfromtheprioryear. .......................54a 54b

55Ruraltechnologyenterprisezonecreditcarryforward ............................................................................55a 55bh othEr CrEDitS

57 Forthefollowingothercredits,enterinColumn(b)theamountfromColumn(a)whichisbeingusedtooffset2010tax.IncludeinColumn(a)anyamountcarriedforwardfromtheprioryear.

56Oldinvestmenttaxcredit ........................................................................................................................56a 56b57Cropandlivestockcontributioncredit.....................................................................................................57a 57b58Historicpropertypreservationcredit .......................................................................................................58a 58b59Childcarecontributioncredit ..................................................................................................................59a 59b60Childcarecenter/familycarehomeinvestmentcredit ............................................................................60a 60b61Employerchildcarefacilityinvestmentcredit .........................................................................................61a 61b62School-to-careerinvestmentcredit .........................................................................................................62a 62b63Coloradoworksprogramcredit ..............................................................................................................63a 63b64Contaminatedlandredevelopmentcredit ...............................................................................................64a 64b65Low-incomehousingcredit .....................................................................................................................65a 65b66Aircraftmanufacturernewemployeecredit ............................................................................................66a 66b67Jobgrowthincentivecredit .....................................................................................................................67a 67b68Grossconservationeasementcredit ......................................................................................................68a 68b69Alternativefuelrefuelingfacilitycredit ....................................................................................................69a 69b70Non-refundablealternativefuelvehiclecreditcarriedforwardfromprioryear .......................................70a 70b71Totaloflines53bthrough70b ................................................................................................................................................. 7172Totalnon-refundablecredits,addamountsinColumn(b),lines6,15,25,36,40,and71 ..................................................... 7273Refundablealternativefuelvehiclecredit.Enterhereandonline23ofForm112 ................................................................. 73 73

liMitation:Thetotalcreditsenteredonline72onthisForm112CRmaynotexceedthetaxonLine1.Mostunusedportion(s)ofthecreditsonthisform(thedifferencebetweentheamountsinColumn(a)andColumn(b))foreachlinemaybecarriedforwardtothenextincometaxyear.Pleaselistanycreditstobecarriedforwardtotaxyear2011below.Creditstobecarriedforwardto2011:

Page15

Enterprise ZonesAn enterprise zone is an economically distressed areaofColorado inwhich special tax incentives are offered tobusinessesthatexpandorlocateinthezone.Thepurposeofthetaxincentivesistocreatenewjobsandinvestmentsinthezone.See General6forinformationregardingthelocationoftheenterprisezones.

Enterprise Zone investment tax CreditIn lieuof theoldColorado investment taxcredit(ITC)withrespecttosuchproperty,thereshallbeallowedtoanypersonaColorado income taxcredit inanamountequal to threepercentofthequalifiedinvestment(asdefinedinsection46oftheinternalrevenuecode)insection38property(definedinsection48oftheinternalrevenuecode)assaidsections46and48existedpriortotheenactmentofthefederalRevenueReconciliationActof1990totheextentsuchpropertywasusedsolelyandexclusively inaColoradoenterprisezoneduringthefirsttwelvemonthsofownershipofsuchpropertybythetaxpayer.

Section38property isbasically tangiblepersonalpropertywhichiseither(federal)recoverypropertyorotherdepreciableoramortizablepropertyhavingausefullifeofthreeyearsormoreusedinthetaxpayer’stradeorbusiness.Only60percentoftheinvestmentin3-yearrecoverypropertyqualifiesforthecredit.Thequalifiedinvestmentinusedpropertyislimitedto$150,000peryear,andanyamountsexpensedundersection179oftheinternalrevenuecodedonotqualifyforthecredit.Undercertaincircumstancesthetaxpayermayclaimthecreditonleasedproperty.

TheenterprisezoneITCmaybeclaimedinanamountequalto thefirst$5,000of tax liabilityplus50percentof thetaxliabilityinexcessof$5,000.EnterprisezoneITCearnedintaxyearsbeginningonorafterJanuary1,1996maybecarriedback3yearsand forward12.Enterprisezone ITCearnedintaxyearspriortoJanuary1,1996maybecarriedback3yearsandforward7.

Any taxpayer claiming an enterprise zone ITC of $450 ormoremustsubmitwithitsincometaxreturnacertificatefromthezoneadministrator(formDR0074)totheeffectthatthetaxpayer‘sbusinessislocatedintheenterprisezone. 11.

Enterprise Zone new business Facility Employee CreditsOnlytaxpayerswhoestablishanewbusinessfacilityorexpandanexistingfacilityinanenterprisezonemayclaimthenewbusinessfacilityemployeecredits.Thesecreditsmaynotbeclaimedwithrespecttofacilitiesthatwereinplacepriortotheestablishmentofthezoneexceptforaqualifiedexpansion.

• basic employee credit.Taxpayerswhichestablishanewbusinessfacilitymayclaimacreditof$500forthefirst twelvemonthperiod theyemployaqualifiednewbusinessfacilityemployee.Forsubsequenttaxperiods,theyareallowedtoclaimthiscreditwithrespecttotheincreaseintheaveragenumberofenterprisezonenewbusinessfacilityemployees.Anadditional$2,000creditforeachnewbusinessfacilityemployeeisavailabletobusinesseslocatedinanenhancedruralenterprisezone.

• agricultural processing employee credit. Any taxpayerwhooperatesabusinesswithinanenterprisezone which adds value through manufacturing or processing to agricultural commodities can claim an

additional$500employeecredit.Anadditional$500creditfor each new business facility agricultural processingemployee is available to businesses located in anenhancedruralenterprisezone.Onlybusinessesdirectlyengaged in manufacturing or processing agriculturalcommoditiesintosomeformotherthanthatwhichentersnormalagriculturalcommoditymarketingchannelsqualifyforthisspecialincentive.Harvesting,cleaning,packaging,storing,transporting,wholesaling,retailing,orotherwisedistributingproductswithoutchangingtheirformdonotqualify.

• health insurance credit.Anenterprisezonetaxpayercanqualifyforacreditof$200foreachnewbusinessfacilityemployeewhoisinsuredunderahealthinsuranceplan or program provided through the employer.Anyhealth insurance, health maintenance organization,orprepaidhealthplanwhichisapprovedbytheStateInsuranceCommissionerforsaleinColoradoqualifies.Theemployermustcontribute50percentormoreofthetotalcostoftheplan.Aqualifyingtaxpayermayclaimthiscreditforthefirsttwofullincometaxyearsafterthefacilityiscompletedoracquiredwithinanenterprisezone.

Inorder toclaimtheenterprisezonenewbusinessfacilityemployeecredits, thetaxpayermustsubmitwith itsreturnacertificationfromthezoneadministrator(formDR0074).

10.

Contributions to Enterprise Zone administrator CreditThecreditforcontributionstoanenterprisezoneadministratortofurthertheeconomicdevelopmentplanofthezoneisallowedat25percentforcashcontributions,12.5percentforin-kindcontributions,andablendedpercentageforcombinedcash/in-kindcontributions. 23.Thecertificate(s)ofcontribution (formDR0075) furnishedtoyoubythezoneadministratorortheprogram,projectororganizationwillshowtheamountofyourcontributionsthatqualifyforthe25percentcash–12.5percentin-kindcredit.formDR0075mustbeattachedtoForm112.

Thecontributioncreditissubjecttothefollowingrules:

1. Theamountofcreditgeneratedinanyonetaxyearmaynotexceed$100,000.

2. Theamountofcreditgeneratedinexcessofthecreditclaimedmaybecarriedforwardforupto5years.

3. Thecreditislimitedto25percentofthetotalvalueofthecontribution.

4. Creditforin-kindcontributionsarelimitedtoone-halfthecreditallowedforcashcontributionsofthesamevalue.

5. Ifataxpayerhasbothcashandin-kindcontributionsduringataxyear,creditforcashcontributionsmaybeallowedatupto100percentbutonlytotheextentnecessarytobringthetotalcreditupto25percentofthevalueofthecombinedcontributions.

6. Creditwillnotbeallowedforcontributionsthatdirectlybenefitthecontributororthatarenotdirectlyrelatedtojobcreation,jobpreservation,child-carepromotionorfortemporary,emergencyortransitionalhousingprogramswhichpromoteemploymentforhomelesspersons.

Page16

Fyis are available at www.TaxColorado.com

ColoraDo DEpartMEnt oF rEVEnUEDENVERCO80261-0006www.TaxColorado.com

PRSRTSTDU.S.POSTAGE

paiDCOLORADODEPTOFREVENUE

Enterprise Zone Vacant Commercial building rehabilitation CreditA25percentcreditisavailableforrehabilitatingcommercialbuildingsinanenterprisezonewhichareatleast20yearsoldandwhichhavebeenvacantforatleasttwoyears. 24.

Enterprise Zone research and Experimental activities CreditTaxpayerswhomakeresearchandexperimentalexpendituresinanenterprisezoneareentitledtoacreditintheamountof3percentofsuchcurrentyearexpendituresinexcessoftheaverageofsuchexpendituresforthetwoprecedingtaxyears. 22.

Enterprise Zone Job training CreditA credit of 10 percent of the total current year investmentin a qualified job training program for employees workingpredominantlywithinanenterprisezoneisavailable. 31.

rural technology Enterprise Zone Credit CarryforwardCredits from1999-2004 inexcessof the taxduecanbecarriedforwardfor10years. 36.

alternative Fuel refueling Facility CreditA 50 percent credit is available for the construction,reconstructionoracquisitionofanalternativefuelrefuelingfacility. 9.

gross Conservation Easement CreditAcreditbasedonthevalueofadonatedconservationeasementinColorado isavailable.Attachacopyof formDR1305toForm112whenclaimingthiscredit.Additionaldocumentationisrequiredifthecorporationdonatedtheeasementduringthetaxyear. 39.

the old investment tax CreditTheoldinvestmenttaxcreditisthesumoftheoldinvestmenttaxcreditcarryover,thecurrentyearoldinvestmenttaxcreditandtheoldinvestmenttaxcreditcarryback.Thecurrentyearcreditis10percentofthefederalcurrentyearrehabilitation,energyandreforestationinvestmentcreditonassetslocatedinColorado.Thecreditislimitedtothefirst$5,000oftaxliabilityplus25percentofthetaxinexcessof$5,000.Excesscreditmaybecarriedbackthreeyearsandforwardseven. 11.

Crop and livestock Contribution CreditA25percentcreditisavailableforthedonationofcropsorlivestocktoacharitableorganization. 57.historic property preservation CreditAcreditof20percentofthecostofrestoringcertifiedhistoricpropertyinColoradoisavailable. 1.

Child Care Contribution CreditA50percentcredit isavailable forqualifyingcontributionsmadetopromotechildcareinColorado. 35.

Child Care Facility investment CreditA20percentinvestmentcreditisavailableforcertaintangiblepersonalpropertyusedintheoperationofachildcarecenter,afamilychildcarehome,orafostercarehome. 7.

Employer Child Care Facility investment CreditA 10 percent investment credit is available for employersponsoredchildcarefacilityinvestment. 7.

School-to-career investment CreditA credit of 10 percent of the current year investment inaqualifiedschool-to-careerprogramisavailable. 32.

Colorado works program CreditAcreditof20percentofanemployer’sexpenditurestoemployrecipientsofpublicassistanceisavailable. 34.

Contaminated land redevelopment CreditA20percent–50percentcreditisavailableforexpendituresmadetoredevelopcontaminatedlandinColorado. 42.

low-income housing CreditA credit is available for owners of qualified low-incomehousingdevelopments.YoumustattachacopyofyourcreditcertificationfromtheColoradoHousingandFinanceAuthoritytoclaimthiscredit. 46.

aircraft Manufacturer new Employee CreditA credit is available to qualified aircraft manufacturers locatedinanaviationdevelopmentzone. 62.

Job growth incentive CreditCreditsareapprovedandcertifiedbytheColoradoEconomicDevelopment Commission. A credit certificate issued by theCommissionmustbeattachedtoanyreturnclaimingthiscredit

66.