FREQUENTLY ASKED QUESTIONS:

Question: Can anyone purchase Conservation Tax Credits?
Answer: Any individual or business who pays Colorado Income Tax could purchase these conservation tax credits. You can purchase any amount of our Conservation Tax Credits, though we have a $1,000 minimum.

Question: When can I start using these tax credits?
Answer: We have both 2025 and 2026 tax credits available. This indicates the FIRST tax year you can start using the credits, but please keep in mind that the tax credits can be used for 20 years from that date. So the 2025 tax credits can be used up to the tax year of 2045; and the 2026 tax credits can be used up to the tax year of 2046. Since any unused tax credits rollover, many people are choosing to purchase more than they need for just one tax year.

Question: How do I purchase these tax credits?
Answer: When you are ready to move forward, please email kerry@4kc.org with the total amount you'd like to purchase. You can pay EITHER via wire transfer OR via check(s) (postdated is fine). Either way works for us.

Question: How soon do I need to purchase tax credits in order to use them to offset my Colorado income tax owed?
Answer: Keep in mind that you'll want your tax credit certificate in hand prior to when you want to file, so start the process as soon as you can. 

Question: If I only use SOME of the tax credits I have purchased, how do I then show how many credits are remaining for the following tax year(s)? Does the state send me an updated tax credit certificate with the reduced amount or can I request this from the state? How is the remaining amount of tax credits tracked if no new certificate is issued?
Answer: The carryforward of unused credits is accounted for on the DR 1305G form that needs to be submitted with your tax return each year until the credits are fully utilized. It’s similar to tracking inventory, so you’ll want to keep a copy of your form each year. If you provide a copy of the file form to Tax Credit Connection each year after submitting your return, they will track your credits for you as well. You’ll be able to contact them for a copy of the form or to check your credit balance. You also can get a copy of the form from your Colorado Revenue Online account or request a copy from the Colorado Department of Revenue.

Question: How exactly do I file my taxes with these tax credits? Do I have to fill out a separate form or do I just attach the certificate when filing?
Answer: Tax Credit Connection (tax broker for Dharma’s Garden) will prepare and send you a copy of the required form prior to Tax Day each year to file with your tax return, if you have sent them a copy of the prior year’s filed form. Since TCC will not know how many credits you plan to use on the current tax return, that line will be left blank for you or your accountant to fill in prior to submission.

Question: Regarding quarterly taxes, is it true that I can skip paying estimated taxes (quarterly/monthly) and just use my tax credits at time of filing and NOT get docked with a fine?
Answer: Yes, if you have enough tax credits to cover your entire tax liability for the year, then there will not be any fine or penalty assessed by the state for not having made quarterly or monthly payments. If you do not plan to use tax credits to cover your entire liability, you should make pre-payments for that portion.

Question: I have already paid my estimated 2025 Colorado income taxes, but now I want to use these 2025 tax credits instead. Can I request a refund from the state for the amount I already paid? If so, HOW do I request a refund for all of those paid taxes and use tax credits instead at time of filing? And if I do request a refund for those paid taxes, how long does the state take to refund me?
Answer: If you have made prepayments during the year and then have tax credits to cover your prepayments, you are able to be refunded for those prepayments when using your tax credits. When applying the tax credits to cover prepaid liability, it functions as an overpayment and they will refund the difference. (Receiving the refund can take weeks, so plan accordingly). The tax credits themselves are not refundable on your tax return, so you cannot claim more credits than you owe for the year to get a refund.

Question: I’ve already paid a PORTION of my 2025 Colorado income taxes, but I still owe more. Can I use my 2025 tax credits for this remaining portion?
Answer: Yes, you can use your Colorado state income tax credits to pay the remaining portion of your tax liability for the year.

Question: I work for an employer and they are withholding my Colorado income tax. Can I ask them to stop the tax withholding and instead put that money toward tax credits? If so, how do I do this?
Answer: Yes, you can fill out a new W4 form to change your tax withholdings. We recommend consulting with your tax professional prior to making this change.

Question: I file my taxes as “Married filing jointly,” whose name should be on the tax credit certificate — mine or my spouse’s? Also, can I request that BOTH our names be on the certificate (even if that’s not necessary)?
Answer: The tax credits are tracked by social security number and since both SSNs must be present on a married filing jointly return, the tax credits can be in either or both names. To have both names on the tax credit certificate, both persons will need to be a party to the tax credit purchase contract. 8. I file my taxes as “Married filing separately,” whose name should be on the tax credit certificate — mine or my spouse’s? For “Married filing separately” the tax credits should be in the name of the filer that intends to use them on their return.