Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0161.01 Jason Gelender x4330
HOUSE BILL 22-1026
House Committees Senate Committees
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING THE REPLACEMENT OF THE INCOME TAX DEDUCTION FOR101
AMOUNTS SPENT BY AN EMPLOYER TO PROVIDE ALTERNATIVE102
TRANSPORTATION OPTIONS TO EMPLOYEES WITH AN INCOME103
TAX CREDIT FOR AMOUNTS SPENT BY AN EMPLOYER FOR THAT104
PURPOSE, AND, IN CONNECTION THEREWITH, MAKING AN105
APPROPRIATION.106
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
SENATE
Amended 2nd Reading
May 9, 2022
HOUSE
3rd Reading Unamended
May 4, 2022
HOUSE
Amended 2nd Reading
May 3, 2022
HOUSE SPONSORSHIP
Bird and Woog, Benavidez, Boesenecker, Duran, Kipp, Lindsay, McCluskie, Mullica,
Snyder, Valdez A.
SENATE SPONSORSHIP
Hansen and Liston, Kolker
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. bill replaces an existing income tax deduction for expenses incurred by
employers when providing alternative transportation options to employees
with a refundable income tax credit of 50% of such expenses for such
employers. The credit is allowed for income tax years beginning on or
after January 1, 2023, but before January 1, 2033.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, amend 39-22-509 as2
follows:3
39-22-509. Credit against tax - employer expenditures for4
alternative transportation options for employees - legislative5
declaration - definitions. (1) I
N ACCORDANCE WITH SECTION 39-21-3046
(1),
WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE7
TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A8
STATUTORY LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY HEREBY9
FINDS AND DECLARES THAT:10
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT11
ALLOWED BY THIS SECTION ARE:12
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ,13
SPECIFICALLY THE PROVISION OF ALTERNATIVE TRANSPORTATION OPTIONS14
BY EMPLOYERS TO EMPLOYEES ; AND15
(II) T
O PROVIDE TAX RELIEF FOR CERTAIN
EMPLOYERS THAT16
PROVIDE ALTERNATIVE TRANSPORTATION OPTIONS TO THEIR EMPLOYEES ;17
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT18
ALLOWED BY THIS SECTION IS TO INCREASE THE USE OF ALTERNATIVE19
TRANSPORTATION OPTIONS BY EMPLOYEES IN GOING TO AND RETURNING20
FROM THEIR PLACES OF EMPLOYMENT BY PROVIDING AN INCENTIVE TO21
EMPLOYERS TO PROVIDE ALTERNATIVE TRANSPORTATION OPTIONS TO22
EMPLOYEES. IN ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE23
1026-2- STATE AUDITOR TO MEASURE THE EFFECTIVENESS OF THE CREDIT , THE1
DEPARTMENT OF REVENUE , WHEN ADMINISTERING THE CREDIT , SHALL2
REQUIRE EACH EMPLOYER THAT CLAIMS THE CREDIT TO PROVIDE , AT A3
MINIMUM, INFORMATION ABOUT THE SPECIFIC ALTERNATIVE4
TRANSPORTATION OPTIONS OFFERED , THE NUMBER OF EMPLOYEES5
OFFERED AN ALTERNATIVE TRANSPORTATION OPTION , AND, TO THE6
EXTENT FEASIBLE, THE NUMBER OF EMPLOYEES ACTUALLY USING AN7
ALTERNATIVE TRANSPORTATION OPTION AND THE NUMBER OF TRIPS8
TAKEN BY EMPLOYEES USING AN ALTERNATIVE TRANSPORTATION OPTION .9
(1) (2) There shall be allowed to corporate employers a deduction10
from Colorado gross income, to the extent not previously deducted in11
arriving at Colorado gross income, equal to the employer's contribution12
to: AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :13
(a) "A
LTERNATIVE TRANSPORTATION OPTIONS " MEANS free or14
partially subsidized
ridesharing arrangements GENERALLY ACCEPTED15
TRANSPORTATION DEMAND MANAGEMENT STRATEGIES PROVIDED TO16
EMPLOYEES WORKING IN COLORADO, INCLUDING BUT NOT LIMITED TO17
RIDESHARING ARRANGEMENTS, PROVISION OF RIDESHARING VANS OR18
LOW-SPEED CONVEYANCES SUCH AS HUMAN-POWERED OR ELECTRIC19
BICYCLES, SHARED MICROMOBILITY OPTIONS SUCH AS BIKESHARING AND20
ELECTRIC SCOOTER SHARING PROGRAMS , CARSHARING PROGRAMS, AND21
GUARANTEED RIDE HOME PROGRAMS for employees, including, but not22
limited to, providing TO:23
(I) P
ROVIDING vehicles for
such arrangements, cash incentives24
(not RIDESHARING ARRANGEMENTS;25
(II) C
ASH INCENTIVES, NOT to exceed the value of such26 transportation) TRANSPORTATION DEMAND MANAGEMENT STRATEGIES ,27
1026
-3- INCLUDING for participation in ridesharing OR BIKESHARING;1
arrangements, and the2
(III) T
HE payment of all or part of the administrative cost incurred3
in organizing, establishing, or administering
a ridesharing program4
ALTERNATIVE TRANSPORTATION OPTIONS PROGRAMS FOR EMPLOYEES; 5
(IV) F
REE OR PARTIALLY SUBSIDIZED MASS TRANSIT TICKETS ,6
TOKENS, PASSES, OR FARES FOR USE BY EMPLOYEES IN GOING TO AND7
RETURNING FROM THEIR PLACES OF
EMPLOYMENT; AND8
(V) FREE OR PARTIALLY SUBSIDIZED PREARRANGED RIDES , AS9
DEFINED IN SECTION 40-10.1-602 (2), OR FREE OR PARTIALLY SUBSIDIZED10
RIDES PROVIDED BY BIKESHARING ARRANGEMENTS FOR USE BY AN11
EMPLOYEE IN TRAVELING BETWEEN THE EMPLOYEE'S RESIDENCE, THE12
EMPLOYEE'S PLACE OF EMPLOYMENT, OR A MASS TRANSIT FACILITY THAT13
CONNECTS THE EMPLOYEE TO THE EMPLOYEE'S RESIDENCE OR PLACE OF14
EMPLOYMENT.15
(b) "BIKESHARING ARRANGEMENT" MEANS A RENTAL OPERATION16
AT WHICH BICYCLES, AS DEFINED IN SECTION 42-1-102 (10); ELECTRICAL17
ASSISTED BICYCLES, AS DEFINED IN SECTION 42-1-102 (28.5); OR ELECTRIC18
SCOOTERS, AS DEFINED IN SECTION 42-1-102 (28.8), ARE MADE AVAILABLE19
TO PICK UP AND DROP OFF FOR POINT-TO-POINT USE WITHIN A DEFINED20
GEOGRAPHIC AREA.21
(c) "EMPLOYER" MEANS AN ENTITY, INCLUDING BUT NOT LIMITED22
TO A CORPORATION, NONPROFIT ORGANIZATION, PARTNERSHIP, JOINT23
VENTURE, COMMON TRUST FUND , LIMITED ASSOCIATION, POOL OR24
WORKING AGREEMENT , LOCAL GOVERNMENT, OR LIMITED LIABILITY25
COMPANY, THAT EMPLOYS THREE OR MORE PERSONS IN THIS STATE.26
(d) "LOCAL GOVERNMENT" MEANS ANY HOME RULE CITY, TOWN,27
1026
-4- OR CITY AND COUNTY, OR STATUTORY CITY OR TOWN.1
(II) (e) For the purposes of this section, "Ridesharing2
arrangement" means the vehicular transportation of passengers traveling3
together primarily to and from such passengers' places of business or4
work or traveling together on a regularly scheduled basis with a5
commonality of purposes if the vehicle used in such transportation is not6
operated for profit by an entity primarily engaged in the transportation7
business and if no charge is made therefor other than that reasonably8
calculated to recover the direct and indirect costs of the "ridesharing9
arrangement", including, but not limited to, a reasonable incentive to10
maximize occupancy of the vehicle. However, nothing in this11
subparagraph (II) shall be construed as excluding SUBSECTION (2)(c)12
EXCLUDES from this definition an arrangement by an employer engaged13
in the transportation business who THAT provides ridesharing14
arrangements for its employees. The term "RIDESHARING" includes15
"ridesharing arrangements" commonly known as carpools and vanpools,16
except that this term BUT does not include school transportation vehicles17
operated by elementary and secondary schools when they are operated for18
the transportation of children to or from school or on school-related19
events.20
(b) Free or partially subsidized mass transit tickets, tokens, passes,21
or fares for use by employees in going to and returning from their places22
of employment.23
(3) (a) FOR INCOME TAX YEARS BEGINNING ON OR AFTER JANUARY24
1,
2023, BUT BEFORE JANUARY 1,
2025, THERE IS ALLOWED A CREDIT TO25
EACH EMPLOYER IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AM OUNT26
SPENT BY THE EMPLOYER TO PROVIDE ALTERNATIVE TRANSPORTATION27
1026
-5- OPTIONS TO ITS EMPLOYEES, SUBJECT TO THE LIMITATIONS THAT THE1
MAXIMUM AMOUNT SPENT IN ANY INCOME TAX YEAR FOR WHICH AN2
EMPLOYER MAY CLAIM A CREDIT IS TWO HUNDRED FIFTY THOUSAND3
DOLLARS AND THAT THE MAXIMUM AMOUNT SPENT IN ANY INCOME TAX4
YEAR FOR ANY ONE EMPLOYEE FOR WHICH AN EMPLOYER MAY CLAIM A5
CREDIT IS TWO THOUSAND DOLLARS .6
(b) A LOCAL GOVERNMENT OR NONPROFIT ORGANIZATION SHALL7
FILE A CORPORATE INCOME TAX RETURN FOR INFORMATIONAL PURPOSES8
FOR EACH INCOME TAX YEAR THAT THE LOCAL GOVERNMENT OR9
NONPROFIT ORGANIZATION CLAIMS THE CREDIT ALLOWED IN SUBSECTION10
(3)(a) OF THIS SECTION.11
(c) A
S A PREREQUISITE FOR CLAIMING A CREDIT, AN EMPLOYER
12
SHALL PROVIDE TO THE DEPARTMENT , ON A FORM PROVIDED BY THE13
DEPARTMENT OR OTHERWISE IN SUCH FORM AS THE DEPARTMENT MAY14
REQUIRE AND BY AN ANNUAL DEADLINE SPECIFIED BY THE DEPARTMENT ,15
ITS PLAN FOR NOTIFYING ITS EMPLOYEES OF THE AVAILABILITY OF THE16
ALTERNATIVE TRANSPORTATION OPTIONS THAT IT OFFERS AND THE STEPS17
BEYOND SUCH NOTIFICATION THAT IT PLANS TO TAKE TO ENCOURAGE18
EMPLOYEES TO USE THOSE ALTERNATIVE TRANSPORTATION OPTIONS .19
(d) A
N EMPLOYER MAY CLAIM A CREDIT ONLY FOR AMOUNTS
20
SPENT BY THE EMPLOYER FOR ALTERNATIVE TRANSPORTATION OPTIONS21
THAT IT MAKES AVAILABLE TO ALL OF ITS EMPLOYEES WHO ARE EMPLOYED22
IN COLORADO; EXCEPT THAT, IF IT IS NOT FEASIBLE TO OFFER A23
PARTICULAR ALTERNATIVE TRANSPORTATION OPTION TO CERTAIN24
EMPLOYEES, AN EMPLOYER MAY OFFER A SUBSTANTIALLY EQUIVALENT25
ALTERNATIVE TRANSPORTATION OPTION TO SUCH EMPLOYEES . THE26
REQUIREMENT THAT AN ALTERNATIVE TRANSPORTATION OPTION BE27
1026
-6- OFFERED TO ALL EMPLOYEES WHO ARE EMPLOYED IN COLORADO APPLIES1
REGARDLESS OF THE POSITION THAT AN EMPLOYEE HOLDS , WHETHER THE2
EMPLOYEE IS EMPLOYED ON A FULL -TIME OR PART-TIME BASIS, OR3
WHETHER AN EMPLOYEE IS SALARIED , COMPENSATED IN WHOLE OR IN4
PART THROUGH COMMISSIONS OR TIPS , OR PAID ON AN HOURLY BASIS.5
(4) T
HE AMOUNT OF ANY CREDIT ALLOWED UNDER THIS SECTION6
THAT EXCEEDS THE EMPLOYER 'S INCOME TAXES DUE IS REFUNDED TO THE7
EMPLOYER.8
(5) T
HE EXECUTIVE DIRECTOR MAY PRESCRIBE FORMS AND9
PROMULGATE RULES AS NECESSARY TO ADMINISTER THIS SECTION .10
(6) T
HIS SECTION IS REPEALED, EFFECTIVE JANUARY 1,
2029.11
SECTION 2. Appropriation. (1) For the 2022-23 state fiscal12
year, $93,758 is appropriated to the department of revenue. This13
appropriation is from the general fund. To implement this act, the14
department may use this appropriation as follows:15
(a) $63,564 for use by taxation services for personal services,16
which amount is based on an assumption that the division will require an17
additional 0.2 FTE;18
(b) $18,000 for tax administration IT system (GenTax) support;19
and20
(c) $12,194 for the purchase of document management services.21
(2) For the 2022-23 state fiscal year, $12,194 is appropriated to22
the department of personnel. This appropriation is from reappropriated23
funds received from the department of revenue under subsection (1)(c) of24
this section. To implement this act, the department of personnel may use25
this appropriation to provide document management services for the26
department of revenue.27
1026
-7- SECTION 3. Act subject to petition - effective date. This act1
takes effect January 1, 2023; except that, if a referendum petition is filed2
pursuant to section 1 (3) of article V of the state constitution against this3
act or an item, section, or part of this act within the ninety-day period4
after final adjournment of the general assembly, then the act, item,5
section, or part will not take effect unless approved by the people at the6
general election to be held in November 2022 and, in such case, will take7
effect January 1, 2023, or on the date of the official declaration of the8
vote thereon by the governor, whichever is later.9
1026
-8-