Colorado 2022 Regular Session

Colorado House Bill HB1149 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. 22-0505.01 Megan McCall x4215
1	8		HOUSE BILL 22-1149
2		-	~~BY REPRESENTATIVE(S) Lynch and Bird, Bernett, Bockenfeld,~~
3		-	~~Boesenecker, Exum, Hooton, Lindsay, Lontine, McCluskie, Pelton, Snyder,~~
4		-	~~Soper, Titone, Valdez A., Valdez D., Ortiz, Ricks, Roberts;~~
5		-	~~also SENATOR(S) Rankin and Hansen, Bridges, Lee, Zenzinger, Fenberg.~~
	9	+	House Committees Senate Committees
	10	+	Finance Finance
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
6	13		C
7		-	ONCERNING THE EXPANSION OF THE ADVANCED INDUSTRY INVESTMENT
8		-	TAX CREDIT
9		-	, AND, IN CONNECTION THEREWITH , MAKING AN
10		-	APPROPRIATION
11		-	.
12		-	Be it enacted by the General Assembly of the State of Colorado:
13		-	SECTION 1. In Colorado Revised Statutes, 24-48.5-112, amend
14		-	(1)(e) introductory portion, (2)(c), (2)(d), (3)(a), (3)(b), and (6); and add
15		-	(1.5) as follows:
16		-	24-48.5-112. Advanced industry investment tax credit -
17		-	administration - legislative declaration - definitions - repeal. (1) As
18		-	used in this section, unless the context otherwise requires:
19		-	(e) "Qualified investment" means an investment made at any time
20		-	on or after July 1, 2014, but before January 1, 2023
21		-	JANUARY 1, 2027, in an
22		-	equity security that meets all of the following requirements:
23		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
24		-	officers and the Governor. To determine whether the Governor has signed the bill
25		-	or taken other action on it, please consult the legislative status sheet, the legislative
26		-	history, or the Session Laws.
27		-	________
28		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
29		-	through words or numbers indicate deletions from existing law and such material is not part of
30		-	the act. (1.5) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES
31		-	EACH BILL THAT EXTENDS AN EXPIRING TAX EXPENDITURE TO INCLUDE A
32		-	TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY
33		-	LEGISLATIVE DECLARATION
34		-	, THE GENERAL ASSEMBLY HEREBY FINDS AND
35		-	DECLARES THAT
36		-	:
	14	+	ONCERNING THE EXPANSION OF THE ADVANCED INDUSTRY101
	15	+	INVESTMENT TAX
	16	+	CREDIT, AND, IN CONNECTION THEREWITH,102
	17	+	MAKING AN APPROPRIATION .103
	18	+	Bill Summary
	19	+	(Note: This summary applies to this bill as introduced and does
	20	+	not reflect any amendments that may be subsequently adopted. If this bill
	21	+	passes third reading in the house of introduction, a bill summary that
	22	+	applies to the reengrossed version of this bill will be available at
	23	+	http://leg.colorado.gov
	24	+	.)
	25	+	The bill extends the advanced industry investment tax credit for an
	26	+	additional 5 years, increases the annual maximum amount of the tax credit
	27	+	from $750,000 to $4 million and increases the tax credit from 30% to
	28	+	35% of a qualified investment in rural or economically distressed areas.
	29	+	SENATE
	30	+	3rd Reading Unamended
	31	+	May 9, 2022
	32	+	SENATE
	33	+	Amended 2nd Reading
	34	+	May 6, 2022
	35	+	HOUSE
	36	+	3rd Reading Unamended
	37	+	April 28, 2022
	38	+	HOUSE
	39	+	Amended 2nd Reading
	40	+	April 27, 2022
	41	+	HOUSE SPONSORSHIP
	42	+	Lynch and Bird, Bernett, Bockenfeld, Boesenecker, Exum, Hooton, Lindsay, Lontine,
	43	+	McCluskie, Pelton, Snyder, Soper, Titone, Valdez A., Valdez D.
	44	+	SENATE SPONSORSHIP
	45	+	Rankin and Hansen, Bridges, Fenberg, Lee, Zenzinger
	46	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	47	+	Capital letters or bold & italic numbers indicate new material to be added to existing statute.
	48	+	Dashes through the words indicate deletions from existing statute. Be it enacted by the General Assembly of the State of Colorado:1
	49	+	SECTION 1. In Colorado Revised Statutes, 24-48.5-112, amend2
	50	+	(1)(e) introductory portion, (2)(c), (2)(d), (3)(a), (3)(b), and (6); and add3
	51	+	(1.5) as follows:4
	52	+	24-48.5-112. Advanced industry investment tax credit -5
	53	+	administration - legislative declaration - definitions - repeal. (1) As6
	54	+	used in this section, unless the context otherwise requires:7
	55	+	(e) "Qualified investment" means an investment made at any time8
	56	+	on or after July 1, 2014, but before January 1, 2023 JANUARY 1, 2027, in9
	57	+	an equity security that meets all of the following requirements:10
	58	+	(1.5) I
	59	+	N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH11
	60	+	REQUIRES EACH BILL THAT EXTENDS AN EXPIRING TAX EXPENDITURE TO12
	61	+	INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A13
	62	+	STATUTORY LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY HEREBY14
	63	+	FINDS AND DECLARES THAT:15
37	64		(a) T
38		-	HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT
39		-	ALLOWED BY THIS SECTION ARE
40		-	:
	65	+	HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT16
	66	+	ALLOWED BY THIS SECTION ARE:17
41	67		(I) T
42		-	O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ;
	68	+	O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ;18
43	69		(II) T
44		-	O IMPROVE INDUSTRY COMPETITIVENESS ; ~~AND~~
45		-	(III) ~~TO PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR~~
46		-	~~INDIVIDUALS~~
47		-	;
	70	+	O IMPROVE INDUSTRY COMPETITIVENESS ; AND19
	71	+	(III) T
	72	+	O PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR20
	73	+	INDIVIDUALS;21
48	74		(b) T
49		-	HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT
50		-	ALLOWED BY THIS SECTION IS TO ENCOURAGE INVESTMENT IN SMALL
51		-	BUSINESSES LOCATED IN
52		-	COLORADO IN ADVANCED INDUSTRIES , INCLUDING
53		-	IN QUANTUM FIELDS
54		-	, AND IN PARTICULAR IN SMALL BUSINESSES IN
55		-	ADVANCED INDUSTRIES
56		-	, INCLUDING IN QUANTUM FIELDS , LOCATED IN A
57		-	RURAL AREA OR ECONOMICALLY DISTRESSED AREA OF THE STATE
58		-	; AND
59		-	(c) THE STATEMENT REQUIRED BY AN APPLICANT ON THE
60		-	APPLICATION FOR AN ADVANCED I NDUSTRY INVESTMENT TAX CREDIT SET
61		-	FORTH IN SUBSECTION
62		-	(2)(e) OF THIS SECTION, AND THE REPORTS THAT THE
63		-	OFFICE IS REQUIRED TO SUBMIT PURSUANT TO SUBSECTION
64		-	(6) OF THIS
65		-	SECTION
66		-	, WILL ALLOW THE GENERAL ASSEMBLY AND THE STATE AUDITOR TO
67		-	MEASURE THE EFFECTIVENESS OF THE TAX EXPENDITURE
68		-	.
69		-	(2) (c) A business may request the office to determine whether it is
70		-	a qualified small business. Upon receiving the request or upon receipt of an
71		-	application for an advanced industry investment tax credit from a qualified
72		-	investor, the office shall determine whether the business that is named in the
73		-	application or written request is a qualified small business. After
74		-	determining the qualifications, the office shall certify the qualified small
75		-	business as being eligible to receive qualified investments for purposes of
76		-	this section. The certification for a qualified small business that is certified
77		-	after July 1, 2014, is valid until January 1, 2023
78		-	JANUARY 1, 2027, except
79		-	PAGE 2-HOUSE BILL 22-1149 that the certification is revoked if the business no longer meets the
80		-	qualifications. A business shall notify the office within thirty business days
81		-	from the date that it no longer meets the qualifications. If the certification
82		-	is revoked, the office may assess a penalty against the business that is equal
83		-	to the amount of the advanced industry investment tax credits authorized
84		-	after the date that the business no longer meets the qualifications. The state
85		-	treasurer shall deposit the penalty into the state general fund. If the
86		-	certification is revoked, subsequent investments in the business do not
87		-	qualify for a tax credit. All tax credits issued before the revocation of the
88		-	certification remain valid. The office shall not deny any application for a tax
89		-	credit on the basis of the revocation of the certification if the investment
90		-	was made before the date of the revocation.
91		-	(d) As part of the application for an advanced industry investment
92		-	tax credit, the applicant and the qualified small business that receives the
93		-	investment must each provide written authorization to permit the
94		-	department of revenue to provide tax information to the office for the
95		-	purpose of determining if there are any misrepresentations on the
96		-	application. The authorization is limited to disclosure of income tax
97		-	information for the latest two years for which returns were filed with the
98		-	department of revenue preceding the date the application is filed and for all
99		-	tax years through the year in which the investment was made for which a
100		-	return was not filed as of the date of the application. The applicant must
101		-	also provide in the written authorization income tax information for all tax
102		-	years in which the applicant actually claims a tax credit or carries forward
103		-	a tax credit on a return filed with the department of revenue. An applicant
104		-	with an individual ownership interest as a co-owner of a business and that
105		-	may be entitled to a pro rata share of the tax credit pursuant to section
106		-	39-22-532 (5), C.R.S. THAT IS A PARTNERSHIP, LIMITED LIABILITY COMPANY,
107		-	S
108		-	CORPORATION, OR SIMILAR PASS-THROUGH ENTITY AND THAT MAY
109		-	ALLOCATE THE CREDIT AMONG THE PARTNERS
110		-	, SHAREHOLDERS, MEMBERS,
111		-	OR OTHER CONSTITUENT QUALIFIED INVESTORS PURSUANT TO SECTION
112		-	39-22-532 (7) must provide a written authorization with content similar to
113		-	the authorization, and in the same manner, as any other applicant is required
114		-	to provide. If an applicant or qualified small business fails to comply with
115		-	this paragraph (d)
116		-	SUBSECTION (2)(d), an applicant is ineligible for a tax
117		-	credit.
118		-	(3) (a) Subject to the limitations set forth in paragraph (b) of this
119		-	subsection (3) SUBSECTION (3)(b) OF THIS SECTION, the office shall
120		-	PAGE 3-HOUSE BILL 22-1149 authorize an advanced industry investment tax credit for each qualified
121		-	investor who makes a qualified investment in a qualified small business.
122		-	The amount of the tax credit is twenty-five percent of the amount of the
123		-	qualified investment or thirty
124		-	THIRTY-FIVE percent of the qualified
125		-	investment if the qualified small business is located in a rural area or
126		-	economically distressed area of the state as determined by the office. The
127		-	office shall issue a tax credit certificate to the qualified investor for each
128		-	qualified investment stating the amount of the tax credit that is authorized
129		-	for purposes of section 39-22-532. C.R.S.
130		-	A tax credit certificate is
131		-	nontransferable. The office shall certify to the department of revenue the
132		-	name of each qualified investor who receives a tax credit certificate, the
133		-	amount of the tax credit, and other relevant information relating to the tax
134		-	credit.
135		-	(b) (I) The total amount of the advanced industry investment tax
136		-	credits shall not exceed three hundred seventy-five thousand dollars for the
137		-	2014 calendar year; and
138		-	seven hundred fifty thousand dollars for each
	75	+	HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT22
	76	+	ALLOWED BY THIS SECTION IS TO ENCOURAGE INVESTMENT IN SMALL23
	77	+	BUSINESSES LOCATED IN COLORADO IN ADVANCED INDUSTRIES ,24
	78	+	INCLUDING IN QUANTUM FIELDS ,
	79	+	AND IN PARTICULAR IN SMALL25
	80	+	BUSINESSES IN ADVANCED INDUSTRIES , INCLUDING IN QUANTUM FIELDS,26
	81	+	1149-2- LOCATED IN A RURAL AREA OR ECONOMICALLY DISTRESSED AREA OF THE1
	82	+	STATE; AND2
	83	+	(c) T
	84	+	HE STATEMENT REQUIRED BY AN APPLICANT ON THE3
	85	+	APPLICATION FOR AN ADVANCED INDUSTRY INVESTMENT TAX CREDIT SET4
	86	+	FORTH IN SUBSECTION (2)(e) OF THIS SECTION, AND THE REPORTS THAT5
	87	+	THE OFFICE IS REQUIRED TO SUBMIT PURSUANT TO SUBSECTION (6) OF THIS6
	88	+	SECTION, WILL ALLOW THE GENERAL ASSEMBLY AND THE STATE AUDITOR7
	89	+	TO MEASURE THE EFFECTIVENESS OF THE TAX EXPENDITURE .8
	90	+	(2) (c) A business may request the office to determine whether it9
	91	+	is a qualified small business. Upon receiving the request or upon receipt10
	92	+	of an application for an advanced industry investment tax credit from a11
	93	+	qualified investor, the office shall determine whether the business that is12
	94	+	named in the application or written request is a qualified small business.13
	95	+	After determining the qualifications, the office shall certify the qualified14
	96	+	small business as being eligible to receive qualified investments for15
	97	+	purposes of this section. The certification for a qualified small business16
	98	+	that is certified after July 1, 2014, is valid until January 1, 2023
	99	+	JANUARY17
	100	+	1, 2027, except that the certification is revoked if the business no longer18
	101	+	meets the qualifications. A business shall notify the office within thirty19
	102	+	business days from the date that it no longer meets the qualifications. If20
	103	+	the certification is revoked, the office may assess a penalty against the21
	104	+	business that is equal to the amount of the advanced industry investment22
	105	+	tax credits authorized after the date that the business no longer meets the23
	106	+	qualifications. The state treasurer shall deposit the penalty into the state24
	107	+	general fund. If the certification is revoked, subsequent investments in the25
	108	+	business do not qualify for a tax credit. All tax credits issued before the26
	109	+	revocation of the certification remain valid. The office shall not deny any27
	110	+	1149
	111	+	-3- application for a tax credit on the basis of the revocation of the1
	112	+	certification if the investment was made before the date of the revocation.2
	113	+	(d) As part of the application for an advanced industry investment3
	114	+	tax credit, the applicant and the qualified small business that receives the4
	115	+	investment must each provide written authorization to permit the5
	116	+	department of revenue to provide tax information to the office for the6
	117	+	purpose of determining if there are any misrepresentations on the7
	118	+	application. The authorization is limited to disclosure of income tax8
	119	+	information for the latest two years for which returns were filed with the9
	120	+	department of revenue preceding the date the application is filed and for10
	121	+	all tax years through the year in which the investment was made for11
	122	+	which a return was not filed as of the date of the application. The12
	123	+	applicant must also provide in the written authorization income tax13
	124	+	information for all tax years in which the applicant actually claims a tax14
	125	+	credit or carries forward a tax credit on a return filed with the department15
	126	+	of revenue. An applicant with an individual ownership interest as a16
	127	+	co-owner of a business and that may be entitled to a pro rata share of the17
	128	+	tax credit pursuant to section 39-22-532 (5), C.R.S. THAT IS A18
	129	+	PARTNERSHIP, LIMITED LIABILITY COMPANY, S CORPORATION, OR SIMILAR19
	130	+	PASS-THROUGH ENTITY AND THAT MAY ALLOCATE THE CREDIT AM ONG THE20
	131	+	PARTNERS, SHAREHOLDERS, MEMBERS, OR OTHER CONSTITUENT QUALIFIED21
	132	+	INVESTORS PURSUANT TO SECTION 39-22-532 (7) must provide a written22
	133	+	authorization with content similar to the authorization, and in the same23
	134	+	manner, as any other applicant is required to provide. If an applicant or24
	135	+	qualified small business fails to comply with this paragraph (d)25
	136	+	SUBSECTION (2)(d), an applicant is ineligible for a tax credit.26
	137	+	(3) (a) Subject to the limitations set forth in paragraph (b) of this27
	138	+	1149
	139	+	-4- subsection (3) SUBSECTION (3)(b) OF THIS SECTION, the office shall1
	140	+	authorize an advanced industry investment tax credit for each qualified2
	141	+	investor who makes a qualified investment in a qualified small business.3
	142	+	The amount of the tax credit is twenty-five percent of the amount of the4
	143	+	qualified investment or thirty THIRTY-FIVE percent of the qualified5
	144	+	investment if the qualified small business is located in a rural area or6
	145	+	economically distressed area of the state as determined by the office. The7
	146	+	office shall issue a tax credit certificate to the qualified investor for each8
	147	+	qualified investment stating the amount of the tax credit that is authorized9
	148	+	for purposes of section 39-22-532. C.R.S. A tax credit certificate is10
	149	+	nontransferable. The office shall certify to the department of revenue the11
	150	+	name of each qualified investor who receives a tax credit certificate, the12
	151	+	amount of the tax credit, and other relevant information relating to the tax13
	152	+	credit.14
	153	+	(b) (I) The total amount of the advanced industry investment tax15
	154	+	credits shall not exceed three hundred seventy-five thousand dollars for16
	155	+	the 2014 calendar year; and seven hundred fifty thousand dollars for each17
139	156		calendar year from 2015 through 2022;
140		-	AND FOUR MILLION DOLLARS FOR
141		-	EACH CALENDAR YEAR FROM
142		-	2023 THROUGH 2026; except that, if the total
143		-	amount of the credits for 2018 or a later calendar year
144		-	THROUGH 2022 is less
145		-	than the maximum amount, then the maximum amount for the next year is
146		-	increased by an amount equal to the remaining, unused tax credits from the
147		-	prior year. The office shall authorize the tax credits in the order that
148		-	applications are received by the office and shall deny any application
149		-	received after the limit has been met. The office may partially authorize the
150		-	last tax credit that is awarded up to the limit.
151		-	(II) The total amount of the tax credit for each qualified investment
152		-	shall not exceed fifty
153		-	ONE HUNDRED thousand dollars. A qualified investor
154		-	may not claim more than one tax credit per qualified small business, but
155		-	may be eligible for a tax credit for qualified investments in different
156		-	qualified small businesses in the same or a different year.
157		-	(6) On November 1, 2017, the office shall submit a first report to the
158		-	finance and the business, labor, and economic and workforce development
159		-	committees of the house of representatives; to the business, labor, and
160		-	technology and the finance committees of the senate, or any successor
161		-	committees; and to the joint budget committee summarizing all of the tax
162		-	certificates issued since July 1, 2014. At a minimum, the report must
163		-	include the amount of the capital invested by qualified investors and the tax
164		-	PAGE 4-HOUSE BILL 22-1149 credit that each qualified investor received, a description of the qualified
165		-	businesses that received the qualified investment, a projection of the
166		-	number of new employees hired by the qualified small businesses as a result
167		-	of the qualified investment, the geographic distribution of the jobs, and any
168		-	other economic impacts that resulted from the qualified investment.
169		-	Notwithstanding section 24-1-136 (11), the office shall submit a second
170		-	report on November 1, 2022,
171		-	AND A THIRD REPORT ON NOVEMBER 1, 2027,
172		-	to the same legislative committees summarizing,
173		-	FOR THE SECOND REPORT,
174		-	all of the tax certificates issued after January 1, 2018,
175		-	AND, FOR THE THIRD
176		-	REPORT
177		-	, ALL OF THE TAX CERTIFICATES ISSUED AFTER JANUARY 1, 2023. The
178		-	second report
179		-	AND THIRD REPORTS must include the same information as the
180		-	first report.
181		-	SECTION 2. In Colorado Revised Statutes, 39-22-532, repeal (5);
182		-	and add (7) as follows:
183		-	39-22-532. Advanced industry investment tax credit -
184		-	definitions. (5) Individuals who are co-owners of a business, including
185		-	partners in a partnership and shareholders of an S corporation, may each
186		-	claim only their individual pro rata shares of the Colorado innovation
187		-	investment tax credit allowed under this section based on their ownership
188		-	interests. The total of the tax credits allowed to all such owners may not
189		-	exceed the amount that would have been allowed to a sole owner.
190		-	(7) IF A QUALIFIED INVESTOR RECEIVING A CREDIT ALLOWED IN THIS
191		-	SECTION IS A PARTNERSHIP
192		-	, LIMITED LIABILITY COMPANY, S CORPORATION,
193		-	OR SIMILAR PASS-THROUGH ENTITY, THE QUALIFIED INVESTOR MAY
194		-	ALLOCATE THE CREDIT AMONG ITS PARTNERS
195		-	, SHAREHOLDERS, MEMBERS, OR
196		-	OTHER CONSTITUENT QUALIFIED INVESTORS IN ANY MANNER AGREED TO BY
197		-	SUCH PARTNERS
198		-	, SHAREHOLDERS, MEMBERS, OR OTHER CONSTITUENT
199		-	QUALIFIED INVESTORS
200		-	. THE QUALIFIED INVESTOR SHALL CERTIFY TO THE
201		-	COLORADO OFFICE OF ECONOMIC DEVELOPMENT THE AMOUNT OF THE
202		-	CREDIT ALLOCATED TO EACH PARTNER
203		-	, SHAREHOLDER, MEMBER, OR OTHER
204		-	CONSTITUENT QUALIFIED INVESTOR
205		-	, AND THE OFFICE SHALL ISSUE CREDIT
206		-	CERTIFICATES IN THE APPROPRIATE AMOUNTS TO EACH PARTNER
207		-	,
208		-	SHAREHOLDER, MEMBER, OR OTHER CONSTITUENT QUALIFIED INVESTOR .
209		-	E
210		-	ACH PARTNER, SHAREHOLDER, MEMBER, OR OTHER CONSTITUENT
211		-	QUALIFIED INVESTOR SHALL BE ALLOWED TO CLAIM SUCH AMOUNT SUBJECT
212		-	TO ANY RESTRICTIONS SET FORTH IN THIS SECTION AND SECTION
213		-	24-48.5-112.
214		-	PAGE 5-HOUSE BILL 22-1149 SECTION 3. Appropriation. For the 2022-23 state fiscal year,
215		-	$90,000 is appropriated to the office of the governor for use by economic
216		-	development programs. This appropriation is from the general fund and is
217		-	based on an assumption that the office will require an additional 0.8 FTE.
218		-	To implement this act, the office may use this appropriation for advanced
219		-	industries.
220		-	SECTION 4. Act subject to petition - effective date. This act
221		-	takes effect at 12:01 a.m. on the day following the expiration of the
222		-	ninety-day period after final adjournment of the general assembly; except
223		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
224		-	of the state constitution against this act or an item, section, or part of this act
225		-	within such period, then the act, item, section, or part will not take effect
226		-	unless approved by the people at the general election to be held in
227		-	PAGE 6-HOUSE BILL 22-1149 November 2022 and, in such case, will take effect on the date of the official
228		-	declaration of the vote thereon by the governor.
229		-	____________________________ ____________________________
230		-	Alec Garnett Steve Fenberg
231		-	SPEAKER OF THE HOUSE PRESIDENT OF
232		-	OF REPRESENTATIVES THE SENATE
233		-	____________________________ ____________________________
234		-	Robin Jones Cindi L. Markwell
235		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
236		-	OF REPRESENTATIVES THE SENATE
237		-	APPROVED________________________________________
238		-	(Date and Time)
239		-	_________________________________________
240		-	Jared S. Polis
241		-	GOVERNOR OF THE STATE OF COLORADO
242		-	PAGE 7-HOUSE BILL 22-1149
	157	+	AND FOUR MILLION DOLLARS FOR18
	158	+	EACH CALENDAR YEAR FROM 2023 THROUGH 2026;
	159	+	except that, if the total19
	160	+	amount of the credits for 2018 or a later calendar year THROUGH 2022 is20
	161	+	less than the maximum amount, then the maximum amount for the next21
	162	+	year is increased by an amount equal to the remaining, unused tax credits22
	163	+	from the prior year. The office shall authorize the tax credits in the order23
	164	+	that applications are received by the office and shall deny any application24
	165	+	received after the limit has been met. The office may partially authorize25
	166	+	the last tax credit that is awarded up to the limit.26
	167	+	(II) The total amount of the tax credit for each qualified27
	168	+	1149
	169	+	-5- investment shall not exceed fifty ONE HUNDRED thousand dollars. A1
	170	+	qualified investor may not claim more than one tax credit per qualified2
	171	+	small business, but may be eligible for a tax credit for qualified3
	172	+	investments in different qualified small businesses in the same or a4
	173	+	different year.5
	174	+	(6) On November 1, 2017, the office shall submit a first report to6
	175	+	the finance and the business, labor, and economic and workforce7
	176	+	development committees of the house of representatives; to the business,8
	177	+	labor, and technology and the finance committees of the senate, or any9
	178	+	successor committees; and to the joint budget committee summarizing all10
	179	+	of the tax certificates issued since July 1, 2014. At a minimum, the report11
	180	+	must include the amount of the capital invested by qualified investors and12
	181	+	the tax credit that each qualified investor received, a description of the13
	182	+	qualified businesses that received the qualified investment, a projection14
	183	+	of the number of new employees hired by the qualified small businesses15
	184	+	as a result of the qualified investment, the geographic distribution of the16
	185	+	jobs, and any other economic impacts that resulted from the qualified17
	186	+	investment. Notwithstanding section 24-1-136 (11), the office shall18
	187	+	submit a second report on November 1, 2022,
	188	+	AND A THIRD REPORT ON19
	189	+	N
	190	+	OVEMBER 1, 2027,
	191	+	to the same legislative committees summarizing, FOR20
	192	+	THE SECOND REPORT, all of the tax certificates issued after January 1,21
	193	+	2018,
	194	+	AND, FOR THE THIRD REPORT, ALL OF THE TAX CERTIFICATES ISSUED22
	195	+	AFTER JANUARY 1, 2023.
	196	+	The second report AND THIRD REPORTS must23
	197	+	include the same information as the first report.24
	198	+	SECTION 2. In Colorado Revised Statutes, 39-22-532, repeal25
	199	+	(5); and add (7) as follows:26
	200	+	39-22-532. Advanced industry investment tax credit -27
	201	+	1149
	202	+	-6- definitions. (5) Individuals who are co-owners of a business, including1
	203	+	partners in a partnership and shareholders of an S corporation, may each2
	204	+	claim only their individual pro rata shares of the Colorado innovation3
	205	+	investment tax credit allowed under this section based on their ownership4
	206	+	interests. The total of the tax credits allowed to all such owners may not5
	207	+	exceed the amount that would have been allowed to a sole owner.6
	208	+	(7) IF A QUALIFIED INVESTOR RECEIVING A CREDIT ALLOWED IN7
	209	+	THIS SECTION IS A PARTNERSHIP, LIMITED LIABILITY COMPANY, S8
	210	+	CORPORATION, OR SIMILAR PASS-THROUGH ENTITY, THE QUALIFIED9
	211	+	INVESTOR MAY ALLOCATE THE CREDIT AMONG ITS PARTNERS,10
	212	+	SHAREHOLDERS, MEMBERS, OR OTHER CONSTITUENT QUALIFIED INVESTORS11
	213	+	IN ANY MANNER AGREED TO BY SUCH PARTNERS , SHAREHOLDERS,12
	214	+	MEMBERS, OR OTHER CONSTITUENT QUALIFIED INVESTORS. THE QUALIFIED13
	215	+	INVESTOR SHALL CERTIFY TO THE COLORADO OFFICE OF ECONOMIC14
	216	+	DEVELOPMENT THE AMOUNT OF THE CREDIT ALLOCATED TO EACH15
	217	+	PARTNER, SHAREHOLDER, MEMBER, OR OTHER CONSTITUENT QUALIFIED16
	218	+	INVESTOR, AND THE OFFICE SHALL ISSUE CREDIT CERTIFICATES IN THE17
	219	+	APPROPRIATE AMOUNTS TO EACH PARTNER, SHAREHOLDER, MEMBER, OR18
	220	+	OTHER CONSTITUENT QUALIFIED INVESTOR . EACH PARTNER ,19
	221	+	SHAREHOLDER, MEMBER, OR OTHER CONSTITUENT QUALIFIED INVESTOR20
	222	+	SHALL BE ALLOWED TO CLAIM SUCH AMOUNT SUBJECT TO ANY21
	223	+	RESTRICTIONS SET FORTH IN THIS SECTION AND SECTION 24-48.5-112.22
	224	+	SECTION 3. Appropriation. For the 2022-23 state fiscal year,23
	225	+	$90,000 is appropriated to the office of the governor for use by economic24
	226	+	development programs. This appropriation is from the general fund and25
	227	+	is based on an assumption that the office will require an additional 0.826
	228	+	FTE. To implement this act, the office may use this appropriation for27
	229	+	1149
	230	+	-7- advanced industries.1
	231	+	SECTION 4. Act subject to petition - effective date. This act2
	232	+	takes effect at 12:01 a.m. on the day following the expiration of the3
	233	+	ninety-day period after final adjournment of the general assembly; except4
	234	+	that, if a referendum petition is filed pursuant to section 1 (3) of article V5
	235	+	of the state constitution against this act or an item, section, or part of this6
	236	+	act within such period, then the act, item, section, or part will not take7
	237	+	effect unless approved by the people at the general election to be held in8
	238	+	November 2022 and, in such case, will take effect on the date of the9
	239	+	official declaration of the vote thereon by the governor.10
	240	+	1149
	241	+	-8-