Why this matters now
Colorado has updated its C corporation income tax return (Form DR 0112) and guidance for 2025, with important knock-on effects for trucking companies that run interstate and intrastate miles through the state. The Department of Revenue confirms that every C corporation doing business in Colorado or deriving income from Colorado sources must file the DR 0112. IRS‑recognized tax‑exempt organizations are generally exempt; however, those with unrelated business taxable income reported on federal Form 990‑T must also file DR 0112 for Colorado. If an exempt entity is only claiming a refundable or transferable credit, it should instead use DR 0990. S corporations file DR 0106, not DR 0112.
Rates: 2024 vs. 2025
Two different rates are in play. For the 2024 tax year, Colorado temporarily reduced the corporate income tax rate to 4.25% under SB 24‑228; that reduced rate appears directly on the 2024 DR 0112 form (line 19). Beginning with 2025 filings (for tax years starting in 2025 unless revenue “triggers” re‑activate another cut), the DR 0112 instructions revert to the long‑standing 4.40% flat rate for C corporations. Trucking fleets should model both years accordingly when forecasting cash tax.
Due dates, extensions, and estimates
Calendar‑year C corps must file by May 15 (the 15th day of the fifth month after year‑end) and receive an automatic six‑month filing extension to November 15. The extension does not extend time to pay. Use DR 0158‑C for extension payments. Corporations expecting more than $5,000 of Colorado tax after credits must make quarterly estimated payments via DR 0112EP.
Apportionment: receipts factor and trucking’s special rule
Colorado is a single‑sales‑factor state for C corps. Interstate carriers must complete the DR 0112RF Receipts Factor Apportionment Schedule. Notably, for tax years beginning on or after January 1, 2023, the numerator of the receipts factor for a combined group includes amounts sourced to Colorado regardless of which affiliated entity earned them—an important nuance for fleets with multiple related entities.
Trucking companies also fall under a special apportionment rule. Intrastate receipts are fully included in Colorado. For interstate movements, the portion of receipts included in Colorado is determined by the ratio of Colorado “mobile property miles” (all truck and trailer miles, loaded or empty) to total mobile property miles on the trip from origin to destination. The rule sets a de minimis standard—no Colorado apportionment is required if a trucking company has no property (other than mobile property) in the state, makes no pick‑ups or deliveries in state, runs fewer than 25,000 Colorado mobile property miles that are also under 3% of total miles, and makes no more than 12 trips into the state during the tax year. Maintain state‑by‑state mileage records to substantiate your factor.
Credits worth a look for fleets
- Business Personal Property Credit: You may claim a credit equal to the tax on up to $18,000 of the actual value of business personal property; keep your county assessor statement and follow the DR 0112 “112 book” instructions when computing.
- Innovative Truck Credit: If you purchased or leased qualifying vehicles, the Innovative Motor Vehicle and Innovative Truck Credit is available via DR 0617 and flows through on the DR 0112.
- Alternative Transportation Options Credit: Employers that subsidize commuter options for Colorado‑based employees may claim a credit (subject to caps). This can be relevant for larger fleet terminals with significant employee commuting.
- SALT Parity Act Credit: If your C corp is a partner in a partnership that elected Colorado’s SALT Parity regime, that credit is claimed on DR 0112.
Filing mechanics and fleet‑specific tips
- E‑file first: The Department encourages filing DR 0112 through Revenue Online or approved software to reduce errors and speed refunds.
- Combined vs. consolidated: If you elect to file a consolidated Colorado return for an affiliated group, that election is binding for four years. Combined filing is required when the statutory intercompany relationship tests are met. Plan entity structures and intercompany service arrangements with those rules in mind.
- Attach what’s needed: Interstate carriers should attach DR 0112RF. Credit claims often require their own schedules or certificates (for example, DR 1366 for Enterprise Zone, DR 0617 for innovative trucks). Missing attachments can delay processing.
- Know your limits under P.L. 86‑272: Pure solicitation of orders for tangible goods can create an income‑tax shield in some cases, but most motor carriers provide services or make Colorado deliveries—activities that typically exceed 86‑272’s narrow protection. The DR 0112 instructions address 86‑272 claims explicitly.
Bottom line for owner‑operators and fleet managers: confirm which rate applies to your tax year (4.25% for 2024; 4.40% for most 2025 filers), get your receipts‑factor and trucking‑miles records in order, and file DR 0112 with all required schedules to avoid penalty and interest.
Sources Consulted: Colorado Department of Revenue (Tax.Colorado.gov); Colorado General Assembly/Code of Colorado Regulations; EY TaxNews; Tax Foundation.
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This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.
