Colorado 2022 Regular Session

Colorado House Bill HB1025 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-third General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 22-0162.01 Ed DeCecco x4216
1	8		HOUSE BILL 22-1025
2		-	~~BY REPRESENTATIVE(S) Benavidez,~~ ~~Gonzales-Gutierrez, Gray,~~
3		-	~~Kennedy, Sirota, Titone;~~
4		-	~~also SENATOR(S) Kolker, Hansen, Buckner, Gonzales, Lee, Moreno,~~
5		-	~~Rodriguez.~~
	9	+	House Committees Senate Committees
	10	+	Finance Finance
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
6	13		C
7		-	ONCERNING THE REPEAL OF INFREQUENTLY USED TAX EXPENDITURES , AND,
8		-	IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.
9		-
10		-	Be it enacted by the General Assembly of the State of Colorado:
11		-	SECTION 1. In Colorado Revised Statutes, 10-3-910, repeal (3)
12		-	as follows:
13		-	10-3-910. Application of this part 9. (3) This part 9 shall not apply
14		-	to any life insurance company organized and operated, without profit to any
15		-	private shareholder or individual, exclusively for the purpose of aiding
16		-	educational or scientific institutions organized and operated without profit
17		-	to any private shareholder or individual by issuing insurance and annuity
18		-	contracts directly from the home office of the company and without agents
19		-	or representatives in this state only to or for the benefit of such institutions
20		-	and to individuals engaged in the services of such institutions, nor to any
21		-	policy or contract which it issues; but this exemption is conditioned upon
22		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
23		-	officers and the Governor. To determine whether the Governor has signed the bill
24		-	or taken other action on it, please consult the legislative status sheet, the legislative
25		-	history, or the Session Laws.
26		-	________
27		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
28		-	through words or numbers indicate deletions from existing law and such material is not part of
29		-	the act. any such company complying with the following requirements:
30		-	(a) Payment of an annual registration fee of five thousand dollars;
31		-	except that the commissioner by rule or as otherwise provided by law may
32		-	reduce the amount of the fee if necessary pursuant to section 24-75-402 (3),
33		-	C.R.S., to reduce the uncommitted reserves of the fund to which all or any
34		-	portion of the fee is credited. After the uncommitted reserves of the fund are
35		-	sufficiently reduced, the commissioner by rule or as otherwise provided by
36		-	law may increase the amount of the fee as provided in section 24-75-402
37		-	(4), C.R.S.
38		-	(b) Filing a copy of any policy or contract issued to Colorado
39		-	residents with the commissioner;
40		-	(c) Filing a copy of its annual statement prepared pursuant to the
41		-	laws of its state of domicile, as well as such other financial material as may
42		-	be requested with the commissioner; and
43		-	(d) Providing, in such form as may be acceptable to the
44		-	commissioner, for the appointment of the commissioner as its true and
45		-	lawful attorney upon whom may be served all lawful process in any action
46		-	or proceeding against such company arising out of any policy or contract it
47		-	has issued to, or which is currently held by, a Colorado citizen, and process
48		-	so served against such company shall have the same force and validity as
49		-	if served upon the company.
50		-	SECTION 2. In Colorado Revised Statutes, 39-22-104, amend (5)
51		-	as follows:
52		-	39-22-104. Income tax imposed on individuals, estates, and
53		-	trusts - single rate - report - legislative declaration - definitions - repeal.
54		-	(5) (a) F
55		-	OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY 1, 2023,
56		-	any person who is required by the terms of this article
57		-	ARTICLE 22 to file a
58		-	return whose only activities in Colorado consist of making sales, who does
59		-	not own or rent real estate within the state of Colorado, and whose annual
60		-	gross sales in or into this state amount to not more than one hundred
61		-	thousand dollars may elect to pay a tax of one-half of one percent of his
62		-	annual gross receipts derived from sales in or into Colorado in lieu of
63		-	paying an income tax.
64		-	PAGE 2-HOUSE BILL 22-1025 (b) THIS SUBSECTION (5) IS REPEALED, EFFECTIVE JULY 1, 2025.
65		-	SECTION 3. In Colorado Revised Statutes, 39-22-114.5, amend
66		-	(1); and add (4) as follows:
67		-	39-22-114.5. Tax credit for investment in technologies for
	14	+	ONCERNING THE REPEAL OF INFREQUENTLY USED TAX101
	15	+	EXPENDITURES, AND, IN CONNECTION THEREWITH, MAKING AN102
	16	+	APPROPRIATION.103
	17	+	Bill Summary
	18	+	(Note: This summary applies to this bill as introduced and does
	19	+	not reflect any amendments that may be subsequently adopted. If this bill
	20	+	passes third reading in the house of introduction, a bill summary that
	21	+	applies to the reengrossed version of this bill will be available at
	22	+	http://leg.colorado.gov/
	23	+	.)
	24	+	Legislative Oversight Committee Concerning Tax Policy. The
	25	+	bill repeals the following tax expenditures:
	26	+	! The exemption from the insurance premium tax for
	27	+	educational and scientific institution life insurance (section
	28	+	1 of the bill);
	29	+	SENATE
	30	+	3rd Reading Unamended
	31	+	April 13, 2022
	32	+	SENATE
	33	+	2nd Reading Unamended
	34	+	April 12, 2022
	35	+	HOUSE
	36	+	3rd Reading Unamended
	37	+	March 16, 2022
	38	+	HOUSE
	39	+	Amended 2nd Reading
	40	+	March 15, 2022
	41	+	HOUSE SPONSORSHIP
	42	+	Benavidez, Gonzales-Gutierrez, Gray, Kennedy, Sirota, Titone
	43	+	SENATE SPONSORSHIP
	44	+	Kolker, Hansen, Buckner, Gonzales, Lee, Moreno, Rodriguez
	45	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	46	+	Capital letters or bold & italic numbers indicate new material to be added to existing statute.
	47	+	Dashes through the words indicate deletions from existing statute. ! The alternative minimum income tax based on annual gross
	48	+	receipts from sales in or into the state (sections 2 and 4);
	49	+	! The income tax credit for investment in technologies for
	50	+	recycling plastics (section 3);
	51	+	! The income tax credit for crop or livestock contributions to
	52	+	a charitable organization (section 4);
	53	+	! The income tax deduction for income or gain for a C
	54	+	corporation that was taxed prior to 1965, to the extent it is
	55	+	included in current taxable income (section 5);
	56	+	! Income tax credits for qualifying investments (sections 6
	57	+	and 7);
	58	+	! The sales and use tax exemption for the transfer of
	59	+	complimentary promotional materials to an out-of-state
	60	+	vendee (section 8);
	61	+	! The requirement that a portion of a state-employed
	62	+	chaplain's salary is designated as a rental allowance
	63	+	(section 9); and
	64	+	! The excise tax exemption for sacramental wines sold and
	65	+	used for religious purposes (section 12). This section also
	66	+	specifies that a religious organization that distributes
	67	+	sacramental wines for religious purposes is not subject to
	68	+	licensing and other regulatory requirements.
	69	+	Sections 10 and 11 make conforming amendments.
	70	+	Be it enacted by the General Assembly of the State of Colorado:1
	71	+	SECTION 1. In Colorado Revised Statutes, 10-3-910, repeal (3)2
	72	+	as follows:3
	73	+	10-3-910. Application of this part 9. (3) This part 9 shall not
	74	+	4
	75	+	apply to any life insurance company organized and operated, without5
	76	+	profit to any private shareholder or individual, exclusively for the purpose6
	77	+	of aiding educational or scientific institutions organized and operated7
	78	+	without profit to any private shareholder or individual by issuing8
	79	+	insurance and annuity contracts directly from the home office of the9
	80	+	company and without agents or representatives in this state only to or for10
	81	+	the benefit of such institutions and to individuals engaged in the services11
	82	+	of such institutions, nor to any policy or contract which it issues; but this12
	83	+	1025-2- exemption is conditioned upon any such company complying with the1
	84	+	following requirements:2
	85	+	(a) Payment of an annual registration fee of five thousand dollars;3
	86	+	except that the commissioner by rule or as otherwise provided by law may4
	87	+	reduce the amount of the fee if necessary pursuant to section 24-75-4025
	88	+	(3), C.R.S., to reduce the uncommitted reserves of the fund to which all6
	89	+	or any portion of the fee is credited. After the uncommitted reserves of7
	90	+	the fund are sufficiently reduced, the commissioner by rule or as8
	91	+	otherwise provided by law may increase the amount of the fee as provided9
	92	+	in section 24-75-402 (4), C.R.S.10
	93	+	(b) Filing a copy of any policy or contract issued to Colorado11
	94	+	residents with the commissioner;12
	95	+	(c) Filing a copy of its annual statement prepared pursuant to the13
	96	+	laws of its state of domicile, as well as such other financial material as14
	97	+	may be requested with the commissioner; and15
	98	+	(d) Providing, in such form as may be acceptable to the16
	99	+	commissioner, for the appointment of the commissioner as its true and17
	100	+	lawful attorney upon whom may be served all lawful process in any18
	101	+	action or proceeding against such company arising out of any policy or19
	102	+	contract it has issued to, or which is currently held by, a Colorado citizen,20
	103	+	and process so served against such company shall have the same force21
	104	+	and validity as if served upon the company.22
	105	+	SECTION 2. In Colorado Revised Statutes, 39-22-104, amend23
	106	+	(5) as follows:24
	107	+	39-22-104. Income tax imposed on individuals, estates, and25
	108	+	trusts - single rate - report - legislative declaration - definitions -26
	109	+	repeal. (5) (a) F
	110	+	OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY27
	111	+	1025
	112	+	-3- 1, 2023, any person who is required by the terms of this article ARTICLE1
	113	+	22 to file a return whose only activities in Colorado consist of making2
	114	+	sales, who does not own or rent real estate within the state of Colorado,3
	115	+	and whose annual gross sales in or into this state amount to not more than4
	116	+	one hundred thousand dollars may elect to pay a tax of one-half of one5
	117	+	percent of his annual gross receipts derived from sales in or into Colorado6
	118	+	in lieu of paying an income tax.7
	119	+	(b) T
	120	+	HIS SUBSECTION (5) IS REPEALED, EFFECTIVE JULY 1, 2025.8
	121	+	SECTION 3. In Colorado Revised Statutes, 39-22-114.5, amend9
	122	+	(1); and add (4) as follows:10
	123	+	39-22-114.5. Tax credit for investment in technologies for11
68	124		recycling plastics - repeal. (1) F
69		-	OR INCOME TAX YEARS COMMENCING
70		-	PRIOR TO
71		-	JANUARY 1, 2023, there shall be allowed to each resident
	125	+	OR INCOME TAX YEARS COMMENCING12
	126	+	PRIOR TO JANUARY 1, 2023, there shall be allowed to each resident13
72	127		individual, as a credit against the income taxes imposed by this article
73		-	ARTICLE 22, a plastic recycling credit equal to twenty percent of net
74		-	expenditures to third parties for rent, wages, supplies, consumable tools,
75		-	equipment, test inventory, and utilities up to ten thousand dollars made by
76		-	the taxpayer for new plastic recycling technology in Colorado, with a
77		-	maximum credit of two thousand dollars. The tax credit allowed in this
78		-	section shall be applicable only to income related to the expenditures
79		-	described in this subsection (1).
	128	+	14
	129	+	ARTICLE 22, a plastic recycling credit equal to twenty percent of net15
	130	+	expenditures to third parties for rent, wages, supplies, consumable tools,16
	131	+	equipment, test inventory, and utilities up to ten thousand dollars made by17
	132	+	the taxpayer for new plastic recycling technology in Colorado, with a18
	133	+	maximum credit of two thousand dollars. The tax credit allowed in this19
	134	+	section shall be applicable only to income related to the expenditures20
	135	+	described in this subsection (1).21
80	136		(4) T
81		-	HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2029.
82		-	SECTION 4. In Colorado Revised Statutes, 39-22-301, ~~amend (2)~~
83		-	and (3)(b); and add (3)(e) as follows:
	137	+	HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2029.22
	138	+	SECTION 4. In Colorado Revised Statutes, 39-22-301, amend23
	139	+	(2) and (3)(b); and add (3)(e) as follows:24
84	140		39-22-301. Corporate tax imposed. (2) (a) F
85		-	OR INCOME TAX
86		-	YEARS COMMENCING PRIOR TO
87		-	JANUARY 1, 2023, any corporation which is
88		-	required by the terms of this article
89		-	ARTICLE 22 to file a return, and whose
90		-	only activities in Colorado consist of making sales, and which does not own
91		-	or rent real estate within the state of Colorado, and whose annual gross sales
92		-	in or into this state amount to not more than one hundred thousand dollars
93		-	may elect to pay a tax of one-half of one percent of its annual gross receipts
94		-	derived from sales in or into Colorado in lieu of paying an income tax.
	141	+	OR INCOME TAX25
	142	+	YEARS COMMENCING PRIOR TO JANUARY 1, 2023, any corporation which26
	143	+	is required by the terms of this article
	144	+	ARTICLE 22 to file a return, and27
	145	+	1025
	146	+	-4- whose only activities in Colorado consist of making sales, and which does1
	147	+	not own or rent real estate within the state of Colorado, and whose annual2
	148	+	gross sales in or into this state amount to not more than one hundred3
	149	+	thousand dollars may elect to pay a tax of one-half of one percent of its4
	150	+	annual gross receipts derived from sales in or into Colorado in lieu of5
	151	+	paying an income tax.6
95	152		(b) T
96		-	HIS SUBSECTION (2) IS REPEALED, EFFECTIVE JULY 1, 2025.
	153	+	HIS SUBSECTION (2) IS REPEALED, EFFECTIVE JULY 1, 2025.7
97	154		(3) (b) F
98		-	OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY 1,
99		-	2023, there shall be allowed to taxpayers, as a credit with respect to the
100		-	income taxes imposed by this part 3, an amount equal to twenty-five percent
101		-	of the wholesale market price or twenty-five percent of the most recent sale
102		-	price of crop contributions or livestock contributions, or both, made to a
103		-	tax-exempt charitable organization. Credit, as provided for in this
104		-	subsection (3), may not exceed one thousand dollars per tax year.
105		-	PAGE 3-HOUSE BILL 22-1025 (e) THIS SUBSECTION (3) IS REPEALED, EFFECTIVE JULY 1, 2029.
106		-	SECTION 5. In Colorado Revised Statutes, 39-22-304, amend
107		-	(3)(e) as follows:
108		-	39-22-304. Net income of corporation - legislative declaration -
109		-	definitions - repeal. (3) There shall be subtracted from federal taxable
110		-	income:
	155	+	OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY8
	156	+	1,
	157	+	2023, there shall be allowed to taxpayers, as a credit with respect to the9
	158	+	income taxes imposed by this part 3, an amount equal to twenty-five10
	159	+	percent of the wholesale market price or twenty-five percent of the most11
	160	+	recent sale price of crop contributions or livestock contributions, or both,12
	161	+	made to a tax-exempt charitable organization. Credit, as provided for in13
	162	+	this subsection (3), may not exceed one thousand dollars per tax year.14
	163	+	(e) T
	164	+	HIS SUBSECTION (3) IS REPEALED, EFFECTIVE JULY 1, 2029.15
	165	+	SECTION 5. In Colorado Revised Statutes, 39-22-304, amend16
	166	+	(3)(e) as follows:17
	167	+	39-22-304. Net income of corporation - legislative declaration18
	168	+	- definitions - repeal. (3) There shall be subtracted from federal taxable19
	169	+	income:20
111	170		(e) (I) F
112		-	OR AN INCOME TAX YEAR COMMENCING PRIOR TO JANUARY
113		-	1, 2023, the amount necessary to prevent the taxation under this article
114		-	ARTICLE 22 of any annuity or other amount of income or gain which was
115		-	properly included in income or gain and was taxed under the laws of this
116		-	state, for a taxable year prior to January 1, 1965, to the taxpayer, or to a
117		-	decedent by reason of whose death the taxpayer acquired the right to receive
118		-	the income or gain, or to a trust or estate from which the taxpayer received
119		-	the income or gain;
	171	+	OR AN INCOME TAX YEAR COMMENCING PRIOR TO JANUARY21
	172	+	1,
	173	+	2023, the amount necessary to prevent the taxation under this article
	174	+	22
	175	+	ARTICLE 22 of any annuity or other amount of income or gain which was23
	176	+	properly included in income or gain and was taxed under the laws of this24
	177	+	state, for a taxable year prior to January 1, 1965, to the taxpayer, or to a25
	178	+	decedent by reason of whose death the taxpayer acquired the right to26
	179	+	receive the income or gain, or to a trust or estate from which the taxpayer27
	180	+	1025
	181	+	-5- received the income or gain;1
120	182		(II) T
121		-	HIS SUBSECTION (3)(e) IS REPEALED, EFFECTIVE JULY 1, 2024.
122		-	SECTION 6. In Colorado Revised Statutes, 39-22-507.5, amend
123		-	(1) introductory portion; and add (13) as follows:
124		-	39-22-507.5. Credits against tax - investment in certain property
125		-	- repeal. (1) Except as otherwise provided in this section, there shall be
126		-	allowed to any person as a credit against the tax imposed by this article
127		-	ARTICLE 22, for income tax years commencing on or after January 1, 1979,
128		-	BUT PRIOR TO JANUARY 1, 2023, an amount equal to the total of:
	183	+	HIS SUBSECTION (3)(e) IS REPEALED, EFFECTIVE JULY 1, 2024.2
	184	+	SECTION 6. In Colorado Revised Statutes, 39-22-507.5, amend3
	185	+	(1) introductory portion; and add (13) as follows:4
	186	+	39-22-507.5. Credits against tax - investment in certain5
	187	+	property - repeal. (1) Except as otherwise provided in this section, there6
	188	+	shall be allowed to any person as a credit against the tax imposed by this7
	189	+	article
	190	+	ARTICLE 22, for income tax years commencing on or after January8
	191	+	1, 1979,
	192	+	BUT PRIOR TO JANUARY 1, 2023, an amount equal to the total of:9
129	193		(13) T
130		-	HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2031.
131		-	SECTION 7. In Colorado Revised Statutes, 39-22-507.6, amend
132		-	(1) introductory portion; and add (7) as follows:
133		-	39-22-507.6. Credits against corporate tax - investment in
134		-	certain property - repeal. (1) Except as otherwise provided in this section,
135		-	there shall be allowed to any person as a credit against the tax imposed by
136		-	part 3 of this article ARTICLE 22, for income tax years commencing on or
137		-	after January 1, 1988,
138		-	BUT PRIOR TO JANUARY 1, 2023, an amount equal to
139		-	the total of:
140		-	PAGE 4-HOUSE BILL 22-1025 (7) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.
141		-	SECTION 8. In Colorado Revised Statutes, 39-26-713, amend (1)
142		-	introductory portion and (2)(h); and repeal (1)(b) and (2)(i) as follows:
143		-	39-26-713. Tangible personal property. (1) The following shall
	194	+	HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2031. 10
	195	+	SECTION 7. In Colorado Revised Statutes, 39-22-507.6, amend11
	196	+	(1) introductory portion; and add (7) as follows:12
	197	+	39-22-507.6. Credits against corporate tax - investment in13
	198	+	certain property - repeal. (1) Except as otherwise provided in this14
	199	+	section, there shall be allowed to any person as a credit against the tax15
	200	+	imposed by part 3 of this article
	201	+	ARTICLE 22, for income tax years16
	202	+	commencing on or after January 1, 1988,
	203	+	BUT PRIOR TO JANUARY 1, 2023,17
	204	+	an amount equal to the total of:18
	205	+	(7) T
	206	+	HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.19
	207	+	SECTION 8. In Colorado Revised Statutes, 39-26-713, amend20
	208	+	(1) introductory portion and (2)(h); and repeal (1)(b) and (2)(i) as21
	209	+	follows:22
	210	+	39-26-713. Tangible personal property. (1) The following shall23
144	211		be exempt from taxation under the provisions of part 1 of this article
145		-	ARTICLE 22:
146		-	(b) The transfer of tangible personal property without consideration,
147		-	other than the purchase, sale, or promotion of the transferor's product, to an
148		-	out-of-state vendee for use outside of this state in selling products normally
149		-	sold at wholesale by the transferor;
150		-	(2) The following are exempt from taxation under part 2 of this
151		-	article 26:
152		-	(h) The storage, use, or consumption of tangible personal property
153		-	purchased by a resident of Colorado while outside the state in amounts of
	212	+	24
	213	+	ARTICLE 22:25
	214	+	(b) The transfer of tangible personal property without26
	215	+	consideration, other than the purchase, sale, or promotion of the27
	216	+	1025
	217	+	-6- transferor's product, to an out-of-state vendee for use outside of this state1
	218	+	in selling products normally sold at wholesale by the transferor;2
	219	+	(2) The following are exempt from taxation under part 2 of this3
	220	+	article 26:4
	221	+	(h) The storage, use, or consumption of tangible personal property5
	222	+	purchased by a resident of Colorado while outside the state in amounts of6
154	223		one hundred dollars or less;
155		-	~~AND~~
	224	+	AND7
156	225		(i) The storage, use, or consumption of tangible personal property
157		-	that is thereafter transferred to an out-of-state vendee without consideration,
158		-	other than the purchase, sale, or promotion of the transferor's product, for
159		-	use outside of this state in selling products normally sold at wholesale by
160		-	the corporation or person storing, using, or consuming said property; and
161		-	SECTION 9. In Colorado Revised Statutes, repeal 39-22-510 as
162		-	follows:
163		-	39-22-510. State-employed chaplains - designation of rental
164		-	allowance. (1) In the case of a chaplain, "salary" means the amount of
165		-	money or credit received as compensation for services rendered, exclusive
166		-	of mileage, traveling allowances, and other sums received for actual and
167		-	necessary expenses incurred in the performance of the state's business.
168		-	(2) The state of Colorado, being a tax-exempt entity, designates a
169		-	portion of the annual compensation of every chaplain who is employed
170		-	full-time by this state, in the amount of four thousand two hundred dollars,
171		-	as the payment of a rental allowance for the purpose of renting or providing
172		-	PAGE 5-HOUSE BILL 22-1025 a home for the chaplain and his family when such rent or home is not
173		-	provided by the state.
174		-	SECTION 10. In Colorado Revised Statutes, 39-22-517, amend (1)
175		-	and (2) as follows:
176		-	39-22-517. Tax credit for child care center investments. (1) With
177		-	respect to taxable years commencing on or after January 1, 1992, there shall
178		-	be allowed to any person operating a child care center, family child care
179		-	home, or foster care home licensed pursuant to the provisions of section
180		-	26-6-104, C.R.S.,
181		-	a credit against the tax imposed by this article ARTICLE 22
182		-	in the amount of twenty percent of the taxpayer's annual investment in
183		-	tangible personal property to be used in such child care center, family child
184		-	care home, or foster care home. Such credit shall be in addition to any credit
185		-	for which the taxpayer may be eligible pursuant to the provisions of section
186		-	39-22-507.5 or section 39-22-507.6.
187		-	(2) With respect to taxable years commencing on or after July 1,
188		-	1992, there shall be allowed to any sole proprietorship, partnership, limited
189		-	liability corporation, subchapter S corporation, or regular corporation which
190		-	provides child care facilities which are incidental to their business and are
191		-	licensed pursuant to section 26-6-104, C.R.S.,
192		-	for the use of its employees
193		-	a credit against the tax imposed by this article ARTICLE 22 in the amount of
194		-	ten percent of the taxpayer's annual investment in tangible personal property
195		-	to be used in such child care facilities. Such credit shall be in addition to
196		-	any credit for which the taxpayer may be eligible pursuant to the provisions
197		-	of section 39-22-507.5 or section 39-22-507.6.
198		-	SECTION 11. In Colorado Revised Statutes, 39-30-104, amend
199		-	(1)(a); and repeal (2)(a) as follows:
200		-	39-30-104. Credit against tax - investment in certain property
201		-	- definitions. (1) (a) In lieu of any credit allowable under section
202		-	39-22-507.5, There shall be allowed to any person as a credit against the tax
203		-	imposed by article 22 of this title TITLE 39, for income tax years
204		-	commencing on or after January 1, 1986, an amount equal to the total of
205		-	three percent of the total qualified investment, as determined under section
206		-	46 (c)(2) of the federal "Internal Revenue Code of 1986", as amended, in
207		-	such taxable year in qualified property as defined in section 48 of the
208		-	internal revenue code to the extent that such investment is in property that
209		-	PAGE 6-HOUSE BILL 22-1025 is used solely and exclusively in an enterprise zone for at least one year. The
210		-	references in this subsection (1) to sections 46 (c)(2) and 48 of the internal
211		-	revenue code mean sections 46 (c)(2) and 48 of the internal revenue code
212		-	as they existed immediately prior to the enactment of the federal "Revenue
213		-	Reconciliation Act of 1990".
214		-	(2) (a) For income tax years commencing prior to January 1, 2014,
215		-	the amount of the credit set forth in subsection (1) of this section shall be
216		-	subject to the limitations of section 39-22-507.5; except that, in computing
217		-	the limitations on credit pursuant to section 39-22-507.5 (3), a taxpayer's
218		-	actual tax liability for the income tax year shall not be reduced by the
219		-	amount of credits allowed by section 39-30-105.1 and the limit on that
220		-	portion of a taxpayer's tax liability that exceeds five thousand dollars shall
221		-	be fifty percent.
222		-	SECTION 12. Appropriation. (1) For the 2022-23 state fiscal year,
223		-	$30,750 is appropriated to the department of revenue. This appropriation is
224		-	from the general fund. To implement this act, the department may use this
225		-	appropriation as follows:
226		-	(a) $6,750 for tax administration ITsystem (GenTax) support; and
227		-	(b) $24,000 for use by the taxation services division for personal
228		-	services.
229		-	SECTION 13. Act subject to petition - effective date. Sections 8,
230		-	10, and 11 of this act take effect January 1, 2023, and the remainder of this
231		-	act takes effect at 12:01 a.m. on the day following the expiration of the
232		-	ninety-day period after final adjournment of the general assembly; except
233		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
234		-	of the state constitution against this act or an item, section, or part of this act
235		-	within such period, then the act, item, section, or part will not take effect
236		-	unless approved by the people at the general election to be held in
237		-	PAGE 7-HOUSE BILL 22-1025 November 2022 and, in such case, will take effect on the date of the official
238		-	declaration of the vote thereon by the governor; except that sections 8, 10,
239		-	and 11 of this act take effect January 1, 2023.
240		-	____________________________ ____________________________
241		-	Alec Garnett Steve Fenberg
242		-	SPEAKER OF THE HOUSE PRESIDENT OF
243		-	OF REPRESENTATIVES THE SENATE
244		-	____________________________ ____________________________
245		-	Robin Jones Cindi L. Markwell
246		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
247		-	OF REPRESENTATIVES THE SENATE
248		-	APPROVED________________________________________
249		-	(Date and Time)
250		-	_________________________________________
251		-	Jared S. Polis
252		-	GOVERNOR OF THE STATE OF COLORADO
253		-	PAGE 8-HOUSE BILL 22-1025
	226	+	8
	227	+	that is thereafter transferred to an out-of-state vendee without9
	228	+	consideration, other than the purchase, sale, or promotion of the10
	229	+	transferor's product, for use outside of this state in selling products11
	230	+	normally sold at wholesale by the corporation or person storing, using, or12
	231	+	consuming said property; and13
	232	+	SECTION 9. In Colorado Revised Statutes, repeal 39-22-510 as14
	233	+	follows:15
	234	+	39-22-510. State-employed chaplains - designation of rental16
	235	+	allowance. (1) In the case of a chaplain, "salary" means the amount of17
	236	+	money or credit received as compensation for services rendered,18
	237	+	exclusive of mileage, traveling allowances, and other sums received for19
	238	+	actual and necessary expenses incurred in the performance of the state's20
	239	+	business.21
	240	+	(2) The state of Colorado, being a tax-exempt entity, designates22
	241	+	a portion of the annual compensation of every chaplain who is employed23
	242	+	full-time by this state, in the amount of four thousand two hundred24
	243	+	dollars, as the payment of a rental allowance for the purpose of renting or25
	244	+	providing a home for the chaplain and his family when such rent or home26
	245	+	is not provided by the state.27
	246	+	1025
	247	+	-7- SECTION 10. In Colorado Revised Statutes, 39-22-517, amend1
	248	+	(1) and (2) as follows:2
	249	+	39-22-517. Tax credit for child care center investments.3
	250	+	(1) With respect to taxable years commencing on or after January 1,4
	251	+	1992, there shall be allowed to any person operating a child care center,5
	252	+	family child care home, or foster care home licensed pursuant to the6
	253	+	provisions of section 26-6-104, C.R.S., a credit against the tax imposed7
	254	+	by this article ARTICLE 22 in the amount of twenty percent of the8
	255	+	taxpayer's annual investment in tangible personal property to be used in9
	256	+	such child care center, family child care home, or foster care home. Such10
	257	+	credit shall be in addition to any credit for which the taxpayer may be11
	258	+	eligible pursuant to the provisions of section 39-22-507.5 or section12
	259	+	39-22-507.6.13
	260	+	(2) With respect to taxable years commencing on or after July 1,14
	261	+	1992, there shall be allowed to any sole proprietorship, partnership,15
	262	+	limited liability corporation, subchapter S corporation, or regular16
	263	+	corporation which provides child care facilities which are incidental to17
	264	+	their business and are licensed pursuant to section 26-6-104, C.R.S., for18
	265	+	the use of its employees a credit against the tax imposed by this article19
	266	+	ARTICLE 22 in the amount of ten percent of the taxpayer's annual20
	267	+	investment in tangible personal property to be used in such child care21
	268	+	facilities. Such credit shall be in addition to any credit for which the22
	269	+	taxpayer may be eligible pursuant to the provisions of section23
	270	+	39-22-507.5 or section 39-22-507.6.24
	271	+	SECTION 11. In Colorado Revised Statutes, 39-30-104, amend25
	272	+	(1)(a); and repeal (2)(a) as follows:26
	273	+	39-30-104. Credit against tax - investment in certain property27
	274	+	1025
	275	+	-8- - definitions. (1) (a) In lieu of any credit allowable under section1
	276	+	39-22-507.5, There shall be allowed to any person as a credit against the2
	277	+	tax imposed by article 22 of this title TITLE 39, for income tax years3
	278	+	commencing on or after January 1, 1986, an amount equal to the total of4
	279	+	three percent of the total qualified investment, as determined under5
	280	+	section 46 (c)(2) of the federal "Internal Revenue Code of 1986", as6
	281	+	amended, in such taxable year in qualified property as defined in section7
	282	+	48 of the internal revenue code to the extent that such investment is in8
	283	+	property that is used solely and exclusively in an enterprise zone for at9
	284	+	least one year. The references in this subsection (1) to sections 46 (c)(2)10
	285	+	and 48 of the internal revenue code mean sections 46 (c)(2) and 48 of the11
	286	+	internal revenue code as they existed immediately prior to the enactment12
	287	+	of the federal "Revenue Reconciliation Act of 1990".13
	288	+	(2) (a) For income tax years commencing prior to January 1, 2014,14
	289	+	the amount of the credit set forth in subsection (1) of this section shall be15
	290	+	subject to the limitations of section 39-22-507.5; except that, in16
	291	+	computing the limitations on credit pursuant to section 39-22-507.5 (3),17
	292	+	a taxpayer's actual tax liability for the income tax year shall not be18
	293	+	reduced by the amount of credits allowed by section 39-30-105.1 and the19
	294	+	limit on that portion of a taxpayer's tax liability that exceeds five thousand20
	295	+	dollars shall be fifty percent.21
	296	+	22
	297	+	SECTION 12. Appropriation. (1) For the 2022-23 state fiscal23
	298	+	year, $30,750 is appropriated to the department of revenue. This24
	299	+	appropriation is from the general fund. To implement this act, the25
	300	+	department may use this appropriation as follows:26
	301	+	(a) $6,750 for tax administration ITsystem (GenTax) support; and27
	302	+	1025
	303	+	-9- (b) $24,000 for use by the taxation services division for personal1
	304	+	services.2
	305	+	SECTION 13. Act subject to petition - effective date.3
	306	+	(1) Except as set forth in subsection (2) of this section, this act takes4
	307	+	effect at 12:01 a.m. on the day following the expiration of the ninety-day5
	308	+	period after final adjournment of the general assembly; except that, if a6
	309	+	referendum petition is filed pursuant to section 1 (3) of article V of the7
	310	+	state constitution against this act or an item, section, or part of this act8
	311	+	within such period, then the act, item, section, or part will not take effect9
	312	+	unless approved by the people at the general election to be held in10
	313	+	November 2022 and, in such case, will take effect on the date of the11
	314	+	official declaration of the vote thereon by the governor.12
	315	+	(2) Sections 8, 10, and 11 of this act take effect January 1, 2023.13
	316	+	1025
	317	+	-10-