HOUSE BILL 22-1026
BY REPRESENTATIVE(S) Bird and Woog, Benavidez, Boesenecker,
Duran, Kipp, Lindsay, McCluskie, Mullica, Snyder, Valdez A., Hooton,
Michaelson Jenet, Ortiz;
also SENATOR(S) Hansen and Liston, Kolker, Ginal, Hinrichsen, Lee,
Pettersen.
C
ONCERNING THE REPLACEMENT OF THE INCOME TAX DEDUCTION FOR
AMOUNTS SPENT BY AN EMPLOYER TO PROVIDE ALTERNATIVE
TRANSPORTATION OPTIONS TO EMPLOYEES WITH AN INCOME TAX
CREDIT FOR AMOUNTS SPENT BY AN EMPLOYER FOR THAT PURPOSE
,
AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, amend 39-22-509 as
follows:
39-22-509. Credit against tax - employer expenditures for
alternative transportation options for employees - legislative
declaration - definitions. (1) I
N ACCORDANCE WITH SECTION 39-21-304
(1),
WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO
INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. STATUTORY LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY HEREBY
FINDS AND DECLARES THAT
:
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT
ALLOWED BY THIS SECTION ARE
:
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ,
SPECIFICALLY THE PROVISION OF ALTERNATIVE TRANSPORTATION OPTIONS
BY EMPLOYERS TO EMPLOYEES
; AND
(II) TO PROVIDE TAX RELIEF FOR CERTAIN EMPLOYERS THAT PROVIDE
ALTERNATIVE TRANSPORTATION OPTIONS TO THEIR EMPLOYEES
;
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT
ALLOWED BY THIS SECTION IS TO INCREASE THE USE OF ALTERNATIVE
TRANSPORTATION OPTIONS BY EMPLOYEES IN GOING TO AND RETURNING
FROM THEIR PLACES OF EMPLOYMENT BY PROVIDING AN INCENTIVE TO
EMPLOYERS TO PROVIDE ALTERNATIVE TRANSPORTATION OPTIONS TO
EMPLOYEES
. IN ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE
AUDITOR TO MEASURE THE EFFECTIVENESS OF THE CREDIT
, THE DEPARTMENT
OF REVENUE
, WHEN ADMINISTERING THE CREDIT , SHALL REQUIRE EACH
EMPLOYER THAT CLAIMS THE CREDIT TO PROVIDE
, AT A MINIMUM,
INFORMATION ABOUT THE SPECIFIC ALTERNATIVE TRANSPORTATION OPTIONS
OFFERED
, THE NUMBER OF EMPLOYEES OFFERED AN ALTERNATIVE
TRANSPORTATION OPTION
, AND, TO THE EXTENT FEASIBLE, THE NUMBER OF
EMPLOYEES ACTUALLY USING AN ALTERNATIVE TRANSPORTATION OPTION
AND THE NUMBER OF TRIPS TAKEN BY EMPLOYEES USING AN ALTERNATIVE
TRANSPORTATION OPTION
.
(1)
(2) There shall be allowed to corporate employers a deduction
from Colorado gross income, to the extent not previously deducted in
arriving at Colorado gross income, equal to the employer's contribution to:
AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "A
LTERNATIVE TRANSPORTATION OPTIONS " MEANS free or
partially subsidized ridesharing arrangements
GENERALLY ACCEPTED
TRANSPORTATION DEMAND MANAGEMENT STRATEGIES PROVIDED TO
EMPLOYEES WORKING IN
COLORADO, INCLUDING BUT NOT LIMITED TO
RIDESHARING ARRANGEMENTS
, PROVISION OF RIDESHARING VANS OR
LOW
-SPEED CONVEYANCES SUCH AS HUMAN -POWERED OR ELECTRIC
PAGE 2-HOUSE BILL 22-1026 BICYCLES, SHARED MICROMOBILITY OPTIONS SUCH AS BIKESHARING AND
ELECTRIC SCOOTER SHARING PROGRAMS
, CARSHARING PROGRAMS , AND
GUARANTEED RIDE HOME PROGRAMS
for employees, including, but not
limited to, providing
TO:
(I) P
ROVIDING vehicles for such arrangements, cash incentives (not
RIDESHARING ARRANGEMENTS ;
(II) C
ASH INCENTIVES, NOT to exceed the value of such
transportation)
TRANSPORTATION DEMAND MANAGEMENT STRATEGIES ,
INCLUDING for participation in ridesharing OR BIKESHARING; arrangements,
and the
(III) THE payment of all or part of the administrative cost incurred
in organizing, establishing, or administering a ridesharing program
ALTERNATIVE TRANSPORTATION OPTIONS PROGRAMS FOR EMPLOYEES;
(IV) F
REE OR PARTIALLY SUBSIDIZED MASS TRANSIT TICKETS ,
TOKENS, PASSES, OR FARES FOR USE BY EMPLOYEES IN GOING TO AND
RETURNING FROM THEIR PLACES OF EMPLOYMENT
; AND
(V) FREE OR PARTIALLY SUBSIDIZED PREARRANGED RIDES , AS
DEFINED IN SECTION
40-10.1-602 (2), OR FREE OR PARTIALLY SUBSIDIZED
RIDES PROVIDED BY BIKESHARING ARRANGEMENTS FOR USE BY AN
EMPLOYEE IN TRAVELING BETWEEN THE EMPLOYEE
'S RESIDENCE, THE
EMPLOYEE
'S PLACE OF EMPLOYMENT, OR A MASS TRANSIT FACILITY THAT
CONNECTS THE EMPLOYEE TO THE EMPLOYEE
'S RESIDENCE OR PLACE OF
EMPLOYMENT
.
(b) "B
IKESHARING ARRANGEMENT " MEANS A RENTAL OPERATION AT
WHICH BICYCLES
, AS DEFINED IN SECTION 42-1-102 (10); ELECTRICAL
ASSISTED BICYCLES
, AS DEFINED IN SECTION 42-1-102 (28.5); OR ELECTRIC
SCOOTERS
, AS DEFINED IN SECTION 42-1-102 (28.8), ARE MADE AVAILABLE
TO PICK UP AND DROP OFF FOR POINT
-TO-POINT USE WITHIN A DEFINED
GEOGRAPHIC AREA
.
(c) "E
MPLOYER" MEANS AN ENTITY, INCLUDING BUT NOT LIMITED TO
A CORPORATION
, NONPROFIT ORGANIZATION, PARTNERSHIP, JOINT VENTURE,
COMMON TRUST FUND , LIMITED ASSOCIATION , POOL OR WORKING
AGREEMENT
, LOCAL GOVERNMENT, OR LIMITED LIABILITY COMPANY, THAT
PAGE 3-HOUSE BILL 22-1026 EMPLOYS THREE OR MORE PERSONS IN THIS STATE .
(d) "L
OCAL GOVERNMENT" MEANS ANY HOME RULE CITY, TOWN, OR
CITY AND COUNTY
, OR STATUTORY CITY OR TOWN.
(II)
(e) For the purposes of this section, "Ridesharing arrangement"
means the vehicular transportation of passengers traveling together
primarily to and from such passengers' places of business or work or
traveling together on a regularly scheduled basis with a commonality of
purposes if the vehicle used in such transportation is not operated for profit
by an entity primarily engaged in the transportation business and if no
charge is made therefor other than that reasonably calculated to recover the
direct and indirect costs of the "ridesharing arrangement", including, but not
limited to, a reasonable incentive to maximize occupancy of the vehicle.
However, nothing in this subparagraph (II) shall be construed as excluding
SUBSECTION (2)(c) EXCLUDES from this definition an arrangement by an
employer engaged in the transportation business who THAT provides
ridesharing arrangements for its employees. The term "RIDESHARING"
includes "ridesharing arrangements" commonly known as carpools and
vanpools, except that this term
BUT does not include school transportation
vehicles operated by elementary and secondary schools when they are
operated for the transportation of children to or from school or on
school-related events.
(b) Free or partially subsidized mass transit tickets, tokens, passes,
or fares for use by employees in going to and returning from their places of
employment.
(3) (a) FOR INCOME TAX YEARS BEGINNING ON OR AFTER JANUARY
1, 2023, BUT BEFORE JANUARY 1, 2025, THERE IS ALLOWED A CREDIT TO
EACH EMPLOYER IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT
SPENT BY THE EMPLOYER TO PROVIDE ALTERNATIVE TRANSPORTATION
OPTIONS TO ITS EMPLOYEES
, SUBJECT TO THE LIMITATIONS THAT THE
MAXIMUM AMOUNT SPENT IN ANY INCOME TAX YEAR FOR WHICH AN
EMPLOYER MAY CLAIM A CREDIT IS TWO HUNDRED FIFTY THOUSAND
DOLLARS AND THAT THE MAXIMUM AM OUNT SPENT IN ANY INCOME TAX
YEAR FOR ANY ONE EMPLOYEE FOR WHICH AN EMPLOYER MAY CLAIM A
CREDIT IS TWO THOUSAND DOLLARS
.
(b) A
LOCAL GOVERNMENT OR NONPROFIT OR GANIZATION SHALL FILE
PAGE 4-HOUSE BILL 22-1026 A CORPORATE INCOME TAX RETURN FOR INFORMATIONAL PURPOSES FOR
EACH INCOME TAX YEAR THAT THE LOCAL GOVERNMENT OR NONPROFIT
ORGANIZATION CLAIMS THE CREDIT ALLOWED IN SUBSECTION
(3)(a) OF THIS
SECTION
.
(c) A
S A PREREQUISITE FOR CLAIMING A CREDIT , AN EMPLOYER
SHALL PROVIDE TO THE DEPARTMENT
, ON A FORM PROVIDED BY THE
DEPARTMENT OR OTHERWISE IN SUCH FORM AS THE DEPARTMENT MAY
REQUIRE AND BY AN ANNUAL DEADLINE SPECIFIED BY THE DEPARTMENT
, ITS
PLAN FOR NOTIFYING ITS EMPLOYEES OF THE AVAILABILITY OF THE
ALTERNATIVE TRANSPORTATION OPTIONS THAT IT OFFERS AND THE STEPS
BEYOND SUCH NOTIFICATION THAT IT PLANS TO TAKE TO ENCOURAGE
EMPLOYEES TO USE THOSE ALTERNATIVE TRANSPORTATION OPTIONS
.
(d) A
N EMPLOYER MAY CLAIM A CREDIT ONLY FOR AMOUNTS SPENT
BY THE EMPLOYER FOR ALTERNATIVE TRANSPORTATION OPTIONS THAT IT
MAKES AVAILABLE TO ALL OF ITS EMPLOYEES WHO ARE EMPLOYED IN
COLORADO; EXCEPT THAT, IF IT IS NOT FEASIBLE TO OFFER A PARTICULAR
ALTERNATIVE TRANSPORTATION OPTION TO CERTAIN EMPLOYEES
, AN
EMPLOYER MAY OFFER A SUBSTANTIALLY EQUIVALENT ALTERNATIVE
TRANSPORTATION OPTION TO SUCH EMPLOYEES
. THE REQUIREMENT THAT AN
ALTERNATIVE TRANSPORTATION OPTION BE OFFERED TO ALL EMPLOYEES
WHO ARE EMPLOYED IN
COLORADO APPLIES REGARDLESS OF THE POSITION
THAT AN EMPLOYEE HOLDS
, WHETHER THE EMPLOYEE IS EMPLOYED ON A
FULL
-TIME OR PART-TIME BASIS, OR WHETHER AN EMPLOYEE IS SALARIED ,
COMPENSATED IN WHOLE OR IN PART THROUGH COMMISSIONS OR TIPS , OR
PAID ON AN HOURLY BASIS
.
(4) T
HE AMOUNT OF ANY CREDIT ALLOWED UNDER THIS SECTION
THAT EXCEEDS THE EMPLOYER
'S INCOME TAXES DUE IS REFUNDED TO THE
EMPLOYER
.
(5) T
HE EXECUTIVE DIRECTOR MAY PRESCRIBE FORMS AND
PROMULGATE RULES AS NECESSARY TO ADMINISTER THIS SECTION
.
(6) T
HIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2029.
SECTION 2. Appropriation. (1) For the 2022-23 state fiscal year,
$93,758 is appropriated to the department of revenue. This appropriation is
from the general fund. To implement this act, the department may use this
PAGE 5-HOUSE BILL 22-1026 appropriation as follows:
(a) $63,564 for use by taxation services for personal services, which
amount is based on an assumption that the division will require an
additional 0.2 FTE;
(b) $18,000 for tax administration IT system (GenTax) support; and
(c) $12,194 for the purchase of document management services.
(2) For the 2022-23 state fiscal year, $12,194 is appropriated to the
department of personnel. This appropriation is from reappropriated funds
received from the department of revenue under subsection (1)(c) of this
section. To implement this act, the department of personnel may use this
appropriation to provide document management services for the department
of revenue.
SECTION 3. Act subject to petition - effective date. This act
takes effect January 1, 2023; except that, if a referendum petition is filed
pursuant to section 1 (3) of article V of the state constitution against this act
or an item, section, or part of this act within the ninety-day period after final
adjournment of the general assembly, then the act, item, section, or part will
not take effect unless approved by the people at the general election to be
PAGE 6-HOUSE BILL 22-1026 held in November 2022 and, in such case, will take effect January 1, 2023,
or on the date of the official declaration of the vote thereon by the governor,
whichever is later.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 7-HOUSE BILL 22-1026