The property being redeveloped must be located within a municipality that has a population of 10,000 or more and the project must be approved by the Colorado Department of Public Health and Environment (CDPHE). A certificate from CDPHE verifying that the project qualifies for this credit and the implementation costs must be attached to any income tax return that claims this credit. To obtain the certificate, the property must go through the "Voluntary Clean Up Program." For more information, contact any of the following staff members in the Hazardous Materials and Waste Management Division of CDPHE: Jeff Deckler, (303) 692-3387; Dan Scheppers, (303) 692-3398; or Mark Walker, (303) 692-3449, or visit their Website

Computing the Credit
The credit will be the total of the following:

1. 50% of the first $100,000 expended for the project,
2. 30% of the amount expended over $100,000 up to $200,000,
3. 20% of the amount expended over $200,000 up to $300,000

A tax credit is not allowed on expenses in excess of $300,000.

Limitations
To the extent the allowable credit exceeds the net tax liability, the excess may be carried forward for up to five years.

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