Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 22-0162.01 Ed DeCecco x4216
HOUSE BILL 22-1025
House Committees Senate Committees
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING THE REPEAL OF INFREQUENTLY USED TAX101
EXPENDITURES, AND, IN CONNECTION THEREWITH, MAKING AN102
APPROPRIATION.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/
.)
Legislative Oversight Committee Concerning Tax Policy. The
bill repeals the following tax expenditures:
! The exemption from the insurance premium tax for
educational and scientific institution life insurance (section
1 of the bill);
SENATE
3rd Reading Unamended
April 13, 2022
SENATE
2nd Reading Unamended
April 12, 2022
HOUSE
3rd Reading Unamended
March 16, 2022
HOUSE
Amended 2nd Reading
March 15, 2022
HOUSE SPONSORSHIP
Benavidez, Gonzales-Gutierrez, Gray, Kennedy, Sirota, Titone
SENATE SPONSORSHIP
Kolker, Hansen, Buckner, Gonzales, Lee, Moreno, Rodriguez
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. ! The alternative minimum income tax based on annual gross
receipts from sales in or into the state (sections 2 and 4);
! The income tax credit for investment in technologies for
recycling plastics (section 3);
! The income tax credit for crop or livestock contributions to
a charitable organization (section 4);
! The income tax deduction for income or gain for a C
corporation that was taxed prior to 1965, to the extent it is
included in current taxable income (section 5);
! Income tax credits for qualifying investments (sections 6
and 7);
! The sales and use tax exemption for the transfer of
complimentary promotional materials to an out-of-state
vendee (section 8);
! The requirement that a portion of a state-employed
chaplain's salary is designated as a rental allowance
(section 9); and
! The excise tax exemption for sacramental wines sold and
used for religious purposes (section 12). This section also
specifies that a religious organization that distributes
sacramental wines for religious purposes is not subject to
licensing and other regulatory requirements.
Sections 10 and 11 make conforming amendments.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 10-3-910, repeal (3)2
as follows:3
10-3-910. Application of this part 9. (3) This part 9 shall not
4
apply to any life insurance company organized and operated, without5
profit to any private shareholder or individual, exclusively for the purpose6
of aiding educational or scientific institutions organized and operated7
without profit to any private shareholder or individual by issuing8
insurance and annuity contracts directly from the home office of the9
company and without agents or representatives in this state only to or for10
the benefit of such institutions and to individuals engaged in the services11
of such institutions, nor to any policy or contract which it issues; but this12
1025-2- exemption is conditioned upon any such company complying with the1
following requirements:2
(a) Payment of an annual registration fee of five thousand dollars;3
except that the commissioner by rule or as otherwise provided by law may4
reduce the amount of the fee if necessary pursuant to section 24-75-4025
(3), C.R.S., to reduce the uncommitted reserves of the fund to which all6
or any portion of the fee is credited. After the uncommitted reserves of7
the fund are sufficiently reduced, the commissioner by rule or as8
otherwise provided by law may increase the amount of the fee as provided9
in section 24-75-402 (4), C.R.S.10
(b) Filing a copy of any policy or contract issued to Colorado11
residents with the commissioner;12
(c) Filing a copy of its annual statement prepared pursuant to the13
laws of its state of domicile, as well as such other financial material as14
may be requested with the commissioner; and15
(d) Providing, in such form as may be acceptable to the16
commissioner, for the appointment of the commissioner as its true and17
lawful attorney upon whom may be served all lawful process in any18
action or proceeding against such company arising out of any policy or19
contract it has issued to, or which is currently held by, a Colorado citizen,20
and process so served against such company shall have the same force21
and validity as if served upon the company.22
SECTION 2. In Colorado Revised Statutes, 39-22-104, amend23
(5) as follows:24
39-22-104. Income tax imposed on individuals, estates, and25
trusts - single rate - report - legislative declaration - definitions -26
repeal. (5) (a) F
OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY27
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-3- 1, 2023, any person who is required by the terms of this article ARTICLE1
22 to file a return whose only activities in Colorado consist of making2
sales, who does not own or rent real estate within the state of Colorado,3
and whose annual gross sales in or into this state amount to not more than4
one hundred thousand dollars may elect to pay a tax of one-half of one5
percent of his annual gross receipts derived from sales in or into Colorado6
in lieu of paying an income tax.7
(b) T
HIS SUBSECTION (5) IS REPEALED, EFFECTIVE JULY 1, 2025.8
SECTION 3. In Colorado Revised Statutes, 39-22-114.5, amend9
(1); and add (4) as follows:10
39-22-114.5. Tax credit for investment in technologies for11
recycling plastics - repeal. (1) F
OR INCOME TAX YEARS COMMENCING12
PRIOR TO JANUARY 1, 2023, there shall be allowed to each resident13
individual, as a credit against the income taxes imposed by this article
14
ARTICLE 22, a plastic recycling credit equal to twenty percent of net15
expenditures to third parties for rent, wages, supplies, consumable tools,16
equipment, test inventory, and utilities up to ten thousand dollars made by17
the taxpayer for new plastic recycling technology in Colorado, with a18
maximum credit of two thousand dollars. The tax credit allowed in this19
section shall be applicable only to income related to the expenditures20
described in this subsection (1).21
(4) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2029.22
SECTION 4. In Colorado Revised Statutes, 39-22-301, amend23
(2) and (3)(b); and add (3)(e) as follows:24
39-22-301. Corporate tax imposed. (2) (a) F
OR INCOME TAX25
YEARS COMMENCING PRIOR TO JANUARY 1, 2023, any corporation which26
is required by the terms of this article
ARTICLE 22 to file a return, and27
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-4- whose only activities in Colorado consist of making sales, and which does1
not own or rent real estate within the state of Colorado, and whose annual2
gross sales in or into this state amount to not more than one hundred3
thousand dollars may elect to pay a tax of one-half of one percent of its4
annual gross receipts derived from sales in or into Colorado in lieu of5
paying an income tax.6
(b) T
HIS SUBSECTION (2) IS REPEALED, EFFECTIVE JULY 1, 2025.7
(3) (b) F
OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY8
1,
2023, there shall be allowed to taxpayers, as a credit with respect to the9
income taxes imposed by this part 3, an amount equal to twenty-five10
percent of the wholesale market price or twenty-five percent of the most11
recent sale price of crop contributions or livestock contributions, or both,12
made to a tax-exempt charitable organization. Credit, as provided for in13
this subsection (3), may not exceed one thousand dollars per tax year.14
(e) T
HIS SUBSECTION (3) IS REPEALED, EFFECTIVE JULY 1, 2029.15
SECTION 5. In Colorado Revised Statutes, 39-22-304, amend16
(3)(e) as follows:17
39-22-304. Net income of corporation - legislative declaration18
- definitions - repeal. (3) There shall be subtracted from federal taxable19
income:20
(e) (I) F
OR AN INCOME TAX YEAR COMMENCING PRIOR TO JANUARY21
1,
2023, the amount necessary to prevent the taxation under this article
22
ARTICLE 22 of any annuity or other amount of income or gain which was23
properly included in income or gain and was taxed under the laws of this24
state, for a taxable year prior to January 1, 1965, to the taxpayer, or to a25
decedent by reason of whose death the taxpayer acquired the right to26
receive the income or gain, or to a trust or estate from which the taxpayer27
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-5- received the income or gain;1
(II) T
HIS SUBSECTION (3)(e) IS REPEALED, EFFECTIVE JULY 1, 2024.2
SECTION 6. In Colorado Revised Statutes, 39-22-507.5, amend3
(1) introductory portion; and add (13) as follows:4
39-22-507.5. Credits against tax - investment in certain5
property - repeal. (1) Except as otherwise provided in this section, there6
shall be allowed to any person as a credit against the tax imposed by this7
article
ARTICLE 22, for income tax years commencing on or after January8
1, 1979,
BUT PRIOR TO JANUARY 1, 2023, an amount equal to the total of:9
(13) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2031. 10
SECTION 7. In Colorado Revised Statutes, 39-22-507.6, amend11
(1) introductory portion; and add (7) as follows:12
39-22-507.6. Credits against corporate tax - investment in13
certain property - repeal. (1) Except as otherwise provided in this14
section, there shall be allowed to any person as a credit against the tax15
imposed by part 3 of this article
ARTICLE 22, for income tax years16
commencing on or after January 1, 1988,
BUT PRIOR TO JANUARY 1, 2023,17
an amount equal to the total of:18
(7) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.19
SECTION 8. In Colorado Revised Statutes, 39-26-713, amend20
(1) introductory portion and (2)(h); and repeal (1)(b) and (2)(i) as21
follows:22
39-26-713. Tangible personal property. (1) The following shall23
be exempt from taxation under the provisions of part 1 of this article
24
ARTICLE 22:25
(b) The transfer of tangible personal property without26
consideration, other than the purchase, sale, or promotion of the27
1025
-6- transferor's product, to an out-of-state vendee for use outside of this state1
in selling products normally sold at wholesale by the transferor;2
(2) The following are exempt from taxation under part 2 of this3
article 26:4
(h) The storage, use, or consumption of tangible personal property5
purchased by a resident of Colorado while outside the state in amounts of6
one hundred dollars or less;
AND7
(i) The storage, use, or consumption of tangible personal property
8
that is thereafter transferred to an out-of-state vendee without9
consideration, other than the purchase, sale, or promotion of the10
transferor's product, for use outside of this state in selling products11
normally sold at wholesale by the corporation or person storing, using, or12
consuming said property; and13
SECTION 9. In Colorado Revised Statutes, repeal 39-22-510 as14
follows:15
39-22-510. State-employed chaplains - designation of rental16
allowance. (1) In the case of a chaplain, "salary" means the amount of17
money or credit received as compensation for services rendered,18
exclusive of mileage, traveling allowances, and other sums received for19
actual and necessary expenses incurred in the performance of the state's20
business.21
(2) The state of Colorado, being a tax-exempt entity, designates22
a portion of the annual compensation of every chaplain who is employed23
full-time by this state, in the amount of four thousand two hundred24
dollars, as the payment of a rental allowance for the purpose of renting or25
providing a home for the chaplain and his family when such rent or home26
is not provided by the state.27
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-7- SECTION 10. In Colorado Revised Statutes, 39-22-517, amend1
(1) and (2) as follows:2
39-22-517. Tax credit for child care center investments.3
(1) With respect to taxable years commencing on or after January 1,4
1992, there shall be allowed to any person operating a child care center,5
family child care home, or foster care home licensed pursuant to the6
provisions of section 26-6-104, C.R.S., a credit against the tax imposed7
by this article ARTICLE 22 in the amount of twenty percent of the8
taxpayer's annual investment in tangible personal property to be used in9
such child care center, family child care home, or foster care home. Such10
credit shall be in addition to any credit for which the taxpayer may be11
eligible pursuant to the provisions of section 39-22-507.5 or section12
39-22-507.6.13
(2) With respect to taxable years commencing on or after July 1,14
1992, there shall be allowed to any sole proprietorship, partnership,15
limited liability corporation, subchapter S corporation, or regular16
corporation which provides child care facilities which are incidental to17
their business and are licensed pursuant to section 26-6-104, C.R.S., for18
the use of its employees a credit against the tax imposed by this article19
ARTICLE 22 in the amount of ten percent of the taxpayer's annual20
investment in tangible personal property to be used in such child care21
facilities. Such credit shall be in addition to any credit for which the22
taxpayer may be eligible pursuant to the provisions of section23
39-22-507.5 or section 39-22-507.6.24
SECTION 11. In Colorado Revised Statutes, 39-30-104, amend25
(1)(a); and repeal (2)(a) as follows:26
39-30-104. Credit against tax - investment in certain property27
1025
-8- - definitions. (1) (a) In lieu of any credit allowable under section1
39-22-507.5, There shall be allowed to any person as a credit against the2
tax imposed by article 22 of this title TITLE 39, for income tax years3
commencing on or after January 1, 1986, an amount equal to the total of4
three percent of the total qualified investment, as determined under5
section 46 (c)(2) of the federal "Internal Revenue Code of 1986", as6
amended, in such taxable year in qualified property as defined in section7
48 of the internal revenue code to the extent that such investment is in8
property that is used solely and exclusively in an enterprise zone for at9
least one year. The references in this subsection (1) to sections 46 (c)(2)10
and 48 of the internal revenue code mean sections 46 (c)(2) and 48 of the11
internal revenue code as they existed immediately prior to the enactment12
of the federal "Revenue Reconciliation Act of 1990".13
(2) (a) For income tax years commencing prior to January 1, 2014,14
the amount of the credit set forth in subsection (1) of this section shall be15
subject to the limitations of section 39-22-507.5; except that, in16
computing the limitations on credit pursuant to section 39-22-507.5 (3),17
a taxpayer's actual tax liability for the income tax year shall not be18
reduced by the amount of credits allowed by section 39-30-105.1 and the19
limit on that portion of a taxpayer's tax liability that exceeds five thousand20
dollars shall be fifty percent.21
22
SECTION 12. Appropriation. (1) For the 2022-23 state fiscal23
year, $30,750 is appropriated to the department of revenue. This24
appropriation is from the general fund. To implement this act, the25
department may use this appropriation as follows:26
(a) $6,750 for tax administration ITsystem (GenTax) support; and27
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-9- (b) $24,000 for use by the taxation services division for personal1
services.2
SECTION 13. Act subject to petition - effective date.3
(1) Except as set forth in subsection (2) of this section, this act takes4
effect at 12:01 a.m. on the day following the expiration of the ninety-day5
period after final adjournment of the general assembly; except that, if a6
referendum petition is filed pursuant to section 1 (3) of article V of the7
state constitution against this act or an item, section, or part of this act8
within such period, then the act, item, section, or part will not take effect9
unless approved by the people at the general election to be held in10
November 2022 and, in such case, will take effect on the date of the11
official declaration of the vote thereon by the governor.12
(2) Sections 8, 10, and 11 of this act take effect January 1, 2023.13
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